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.

Employment

U.S. Department of Commerce data show the insurance industry provided 4,243 jobs in D.C. in 2017. The D.C. insurance industry accounted for about $687.4 million in compensation in 2017.

Gross State Product

The insurance industry contributed $1.7 billion to the D.C. gross state product (GSP) in 2016, accounting for 1.31 percent of the state GSP.

Taxes

Premium taxes paid by insurance companies in D.C. totaled $110.4 million in 2017.

Premiums

Direct premiums written by property/casualty insurance companies in D.C. totaled $1.9 billion in 2017. Premiums written by life/annuity insurance companies totaled $3.8 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 $246.4 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 D.C. as measured by direct property/casualty incurred losses, were $1.0 billion. Life insurance claims and benefits payouts in D.C. totaled $2.1 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 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

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 D.C. By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Chubb $120,122 9.2%
2 Travelers Companies Inc. 116,105 8.9
3 Liberty Mutual 113,480 8.7
4 AXA 77,302 5.9
5 The Hartford 73,153 5.6
6  American International Group (AIG) 56,622 4.3
7 CNA 56,558 4.3
8 Zurich 49,022 3.8
9 Attorneys' Liability Assurance Society 39,529 3.0
10 W. R. Berkley Corp. 34,002 2.6

(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 D.C. By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $37,038 22.3%
2 Travelers 32,812 19.7
3 Chubb 21,512 12.9
4 USAA 17,459 10.5
5 Allstate Corp. 12,892 7.7
6 Liberty Mutual 10,183 6.1
7 Nationwide 7,057 4.2
8 Erie Insurance 6,201 3.7
9 Assurant 3,969 2.4
10 The Hartford 3,421 2.1

(1) Before reinsurance transactions.

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

View Archived Tables

Top 10 Writers Of Life Insurance/Annuities In D.C. By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 MetLife Inc. $96,451,607 36.3%
2 Prudential Financial Inc. 53,148,550 10.2
3 Principal Financial Group Inc. 25,314,533 8.7
4 TIAA 17,314,932 6.0
5 John Hancock Life Insurance Co. 19,154,820 5.1
6 Mutual of Omaha Insurance Co. 4,998,985 3.4
7 Lincoln National Corp. 25,804,565 3.0
8 Massachusetts Mutual Life Insurance Co. 27,154,611 2.3
9 New York Life Insurance Group 35,452,211 2.0
10 Voya Financial Inc. 15,940,494 1.6

(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.

View Archived Tables

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

 

Rank Group/company Direct premiums written ($000) Market share
1 Berkshire Hathaway Inc.  $136,627 36.8%
2 State Farm  72,385 19.5
3 USAA  35,559 9.6
4 Progressive  32,589 8.8
5 Allstate Corp.  25,979 7.0
6 Travelers Companies Inc.  12,703 3.4
7 Liberty Mutual  12,209 3.3
8 Nationwide  11,496 3.1
9 Erie Insurance  9,400 2.5
10 American Family Insurance  4,903 1.3

(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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