A Firm Foundation: How Insurance Supports the Economy

Key Facts: The Insurance Industry’s Contribution To The Colorado Economy

The insurance industry in Colorado has a significant impact on the state’s economy that extends well beyond its responsibilities to collect premiums and settle claims. It employs licensed professionals, pays taxes, owns municipal bonds and serves people in their times of greatest need.

Employment

U.S. Department of Commerce data show the insurance industry provided 55,773 jobs in Colorado in 2016. The Colorado insurance industry accounted for about $4.2 billion in compensation in 2016.

Gross State Product

The insurance industry contributed $6.0 billion to the Colorado gross state product (GSP) in 2015, accounting for 1.90 percent of the state GSP.

Taxes

Premium taxes paid by insurance companies in Colorado totaled $277.6 million in 2016.

Premiums

Direct premiums written by property/casualty insurance companies in Colorado totaled $11.3 billion in 2016. In addition, premiums written by life/health insurance companies totaled $12.7 billion (including life insurance, annuities, accident and health insurance, deposit type funds and other considerations).

Surplus Lines

The surplus lines market, a group of highly specialized insurers, exists to provide coverage that is not available through licensed insurers in the standard insurance market. For the many thousands of businesses that rely on some level of surplus line protection to keep their doors open, surplus lines is an important segment of the market. The Colorado surplus lines market accounted for $749.8 million in gross premiums written in 2016, according to a survey by Business Insurance.

Claims Payments

Insurance company claims payments help ensure the economic security of individuals and businesses and help sustain a number of related industries. In 2016 these payments in Colorado as measured by direct property/casualty incurred losses, were $8.1 billion. Life insurance claims and benefits payouts in Colorado totaled $8.1 billion in 2016.

Catastrophes

The insurance industry plays a vital role in helping individuals and businesses prepare for and recover from the potentially devastating effects of a disaster such as a catastrophic storm or wildfire. Wildfires and tornadoes landed Colorado as second among the states by insured catastrophe losses in 2016, with $1.5 billion in insured losses.

Leading Writers

Below are tables showing the state’s leading insurance companies, based on market share, and links to state by state comparison tables.

Top 10 Writers Of Commercial Insurance In Colorado By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Pinnacol Assurance $623,848 11.1%
2 Travelers  350,561 6.2
3 Liberty Mutual  331,790 5.9
4 Chubb  300,236 5.3
5 Zurich  207,127 3.7
6 American International Group (AIG)  181,030 3.2
7 CNA  178,400 3.2
8 Nationwide  148,799 2.6
9 Tokio Marine  144,407 2.6
10 The Hartford  143,221 2.5

(1) Before reinsurance transactions.
(2) Data for Farmers Insurance Group of Companies and Zurich Financial Group (which owns Farmers' management company) are reported separately by S&P Global Market Intelligence.

Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.

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Top 10 Writers Of Homeowners Insurance In Colorado By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $498,710 20.1%
2 USAA Insurance Group 279,860 11.3
3 Liberty Mutual 259,879 10.5
4 American Family Insurance Group 240,158 9.7
5 Allstate Corp. 235,486 9.5
6 Farmers Insurance Group 234,254 9.4
7 Travelers Companies Inc. 142,136 5.7
8 Chubb 76,523 3.1
9 Nationwide Mutual Group 56,902 2.3
10 Progressive 43,734 1.8

(1) Before reinsurance transactions.

Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.

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Top 10 Writers Of Life Insurance And Annuity Considerations In Colorado, 2015 (1)

 

Rank Group/company Premiums and annuity considerations ($000) Market share
1 Pacific MHC   $987,835 10.6%
2 AEGON   574,713 6.2
3 Prudential Financial Inc.   444,836 4.8
4 New York Life Insurance Group   411,248 4.4
5 Jackson National Life Group   401,713 4.3
6 Lincoln National Corp.   366,944 3.9
7 Massachusetts Mutual Life Ins. Co.   345,066 3.7
8 Great-West Insurance Group   338,444 3.6
9 Principal Financial Group Inc.   337,809 3.6
10 American International Group (AIG)   325,066 3.5

(1) Includes life insurance, annuity considerations, deposit-type contract funds and other considerations; excludes accident and health insurance from life/health insurers. Before reinsurance transactions.

Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.

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Top 10 Writers Of Private Passenger Auto Insurance In Colorado By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $922,812 18.3%
2 Progressive 551,300 10.9
3 USAA Insurance Group 529,385 10.5
4 Berkshire Hathaway Inc. 491,025 9.8
5 Allstate Corp. 444,700 8.8
6 American Family Insurance Group 404,893 8.0
7 Liberty Mutual 364,933 7.2
8 Farmers Insurance Group  335,417 6.7
9 Travelers Companies Inc. 160,154 3.2
10 Nationwide Mutual Group 91,776 1.8

(1) Before reinsurance transactions.

Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.

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State By State Comparison Tables

Directories

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