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 57,975 jobs in Colorado in 2017. The Colorado insurance industry accounted for about $4.4 billion in compensation in 2017.

Gross State Product

The insurance industry contributed $6.7 billion to the Colorado gross state product (GSP) in 2016, accounting for 2.05 percent of the state GSP.

Taxes

Premium taxes paid by insurance companies in Colorado totaled $256.2 million in 2017.

Premiums

Direct premiums written by property/casualty insurance companies in Colorado totaled $12.3 billion in 2017. Premiums written by life/annuity insurance companies totaled $13.5 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 $806.9 million in gross premiums written in 2017, 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 2017 these payments in Colorado as measured by direct property/casualty incurred losses, were $9.2 billion. Life insurance claims and benefits payouts in Colorado totaled $8.0 billion in 2017.

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, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Pinnacol Assurance $588,500 9.7%
2 Travelers Companies Inc. 374,133 6.2
3 Liberty Mutual 354,006 5.8
4 Chubb 315,719 5.2
5 Zurich 212,647 3.5
6 American International Group (AIG) 187,709 3.1
7 Hartford Financial Services 176,635 2.9
8 CNA 176,170 2.9
9 Nationwide Mutual Group 168,735 2.8
10 Berkshire Hathaway Inc. 150,923 2.5

(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 Homeowners Insurance In Colorado By Direct Premiums Written, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $530,687 19.5%
2 USAA Insurance Group 314,522 11.6
3 Liberty Mutual 299,926 11.0
4 Allstate Corp. 261,636 9.6
5 American Family Insurance Group 260,597 9.6
6 Farmers Insurance Group 237,324 8.7
7 Travelers Companies Inc. 177,371 6.5
8 Chubb 87,193 3.2
9 Nationwide Mutual Group 80,712 3.0
10 Progressive 46,808 1.7

(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/Annuities In Colorado By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Pacific Life $1,467,469 13.9%
2 Prudential Financial Inc.  971,853 9.2
3 New York Life Insurance Group  412,931 3.9
4 Great West 370,281 3.5
5 Northwestern Mutual Life Insurance Co.  360,377 3.4
6 Lincoln National Corp.  357,752 3.4
7 Nationwide Mutual Group  352,652 3.3
8 Transamerica 335,313 3.2
9 MetLife Inc.  314,709 3.0
10 Allianz 313,484 3.0

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

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

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Top 10 Writers Of Private Passenger Auto Insurance In Colorado By Direct Premiums Written, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $920,177 17.3%
2 Progressive 610,292 11.5
3 USAA Insurance Group 559,600 10.5
4 Berkshire Hathaway Inc. 505,944 9.5
5 Allstate Corp. 500,935 9.4
6 Liberty Mutual 420,541 7.9
7 American Family Insurance Group 420,467 7.9
8 Farmers Insurance Group 348,649 6.6
9 Travelers Companies Inc. 172,764 3.2
10 Nationwide Mutual Group 109,042 2.0

(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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