A Firm Foundation: How Insurance Supports the Economy

Key Facts: The Insurance Industry’s Contribution To The D.C. Economy

The insurance industry in D.C. 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.

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

Employment

U.S. Department of Commerce data show the insurance industry provided 4,566 jobs in D.C. in 2015. The D.C. insurance industry accounted for about $705.8 million in compensation in 2015.

Gross State Product

The insurance industry contributed $1.4 billion to the D.C. gross state product (GSP) in 2014, accounting for 1.17 percent of the state GSP.

Taxes

Premium taxes paid by insurance companies in D.C. totaled $106.4 million in 2015.

Premiums

Direct premiums written by property/casualty insurance companies in D.C. totaled $1.7 billion in 2015. In addition, premiums written by life/health insurance companies totaled $3.3 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 D.C. surplus lines market accounted for $244.2 million in gross premiums written in 2015, 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 2015 these payments in D.C. as measured by direct property/casualty incurred losses, were $878 million. Life insurance claims and benefits payouts in D.C. totaled $2.4 billion in 2015, on a direct basis before reinsurance, and includes life insurance, death benefits, matured endowments, annuity benefits and other life insurance benefits. Does not include accident and health.

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 hurricane or storm or wildfire. Washington, D.C. was impacted by Hurricane Sandy in October 2012, along with some dozen states. Sandy caused $18.75 billion in property losses, excluding flood insurance claims covered by the federal flood insurance program, according to estimates from ISO’s PCS unit. Sandy was the third most costly U.S. hurricane, after hurricanes Katrina and Andrew.

Leading Writers

Top 10 Writers Of Commercial Insurance In D.C. By Direct Premiums Written, 2016 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Chubb Ltd. $121,495 10.0%
2 Liberty MHC Inc. 117,407 9.6
3 Travelers Companies Inc. 112,818 9.3
4 Hartford Financial Services 73,591 6.0
5 XL Group Ltd. 63,191 5.2
6 Zurich Insurance Group (2) 62,913 5.2
7 CNA Financial Corp. 51,974 4.3
8 American International Group (AIG) 49,323 4.1
9 Attorneys' Liability Assrance Society 35,176 2.9
10 Tokio Marine Group 34,382 2.8

(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 D.C. By Direct Premiums Written, 2016 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $36,066 23.1%
2 Travelers Companies Inc. 31,800 20.4
3 Chubb Ltd. 20,926 13.4
4 USAA Insurance Group 15,236 9.8
5 Allstate Corp. 13,535 8.7
6 Liberty Mutual 8,644 5.5
7 Nationwide Mutual Group 6,735 4.3
8 Erie Insurance Group 5,367 3.4
9 Hartford Financial Services 3,678 2.4
10 Assurant Inc. 3,103 2.0

(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 D.C., 2015 (1)

 

Rank Group/company Premiums and annuity considerations ($000) Market share
1 MetLife Inc.   $940,551 37.7%
2 Prudential Financial Inc.   230,655 9.2
3 Manulife Financial Corp.   167,333 6.7
4 TIAA   153,864 6.2
5 Principal Financial Group Inc.   87,956 3.5
6 Voya Financial Inc.   79,509 3.2
7 Lincoln National Corp.   66,966 2.7
8 New York Life Insurance Group   65,992 2.6
9 Massachusetts Mutual Life Insurance Co.   53,506 2.1
10 AEGON   42,140 1.7

(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 D.C. By Direct Premiums Written, 2016 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Berkshire Hathaway Inc. $115,149 35.4%
2 State Farm 67,231 20.7
3 Progressive Insurance Group 28,663 8.8
4 USAA Insurance Group 28,553 8.8
5 Allstate Corp. 22,232 6.8
6 Nationwide Mutual Group 11,808 3.6
7 Liberty Mutual 11,617 3.6
8 Travelers Companies Inc. 11,435 3.5
9 Erie Insurance Group 7,311 2.2
10 Hartford Financial Services 5,580 1.7

(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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