A Firm Foundation: How Insurance Supports the Economy

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

The insurance industry in Florida 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 232,002 jobs in Florida in 2017. The Florida insurance industry accounted for about $16.8 billion in compensation in 2017.

Gross State Product

The insurance industry contributed $27.0 billion to the Florida gross state product (GSP) in 2016, accounting for 2.88 percent of the state GSP.

Taxes

Premium taxes paid by insurance companies in Florida totaled $959.3 million in 2017.

Premiums

Direct premiums written by property/casualty insurance companies in Florida totaled $50.4 billion in 2017. Premiums written by life/annuity insurance companies totaled $46.1 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 Florida surplus lines market accounted for $5.3 billion 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 Florida as measured by direct property/casualty incurred losses, were $39.3 billion. Life insurance claims and benefits payouts in Florida totaled $34.2 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. Florida is vulnerable to floods, hurricanes, tornadoes and wildfires.

Six of the 10 costliest hurricanes in U.S. history have impacted Florida. Four of the storms affecting Florida occurred within just two years: 2004 and 2005.

On October 10, 2018 Hurricane Michael, a strong Category 5 storm, made landfall near Mexico Beach, Florida. Michael caused 16 deaths in the United States: seven of which were in Florida. According to CoreLogic there were 57,000 homes at risk of coastal storm surge, totaling more than $13 billion in reconstruction cost value (RCV) across Florida alone. Insured losses from Michael in Florida are estimated at $7 billion.

Florida experienced 48 tornadoes in 2018, ranking at number 7.

Top Three States By Inflation-Adjusted Insured Catastrophe Losses, 1987-2016 (1)

(2016 $ billions)

(1) Adjusted for inflation through 2016 by ISO using the GDP implicit price deflator. Excludes catastrophes causing direct losses less than $25  million in 1997 dollars. Excludes flood damage covered by the federally administered National Flood Insurance Program.
(2) Includes the other 47 states plus Washington, D.C., Puerto Rico, and the U.S. Virgin Islands.

Source: The Property Claim Services® (PCS®) unit of ISO®, a Verisk Analytics® company.

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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 Florida By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Assurant  $2,344,534 10.0%
2 Chubb  1,079,485 4.6
3 Progressive  1,031,855 4.4
4 American International Group (AIG) 916,081 3.9
5 Zurich  800,096 3.4
6 Berkshire Hathaway Inc.  767,481 3.3
7 Liberty Mutual  761,643 3.2
8 Travelers  738,233 3.1
9 CNA  616,770 2.6
10 Great American Insurance  585,368 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 Florida By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Universal Insurance Holdings Inc. $939,938 9.8%
2 State Farm 660,970 6.9
3 Tower Hill 575,258 6.0
4 Citizens Property Insurance Corp. 489,870 5.1
5 FEDNAT 413,198 4.3
6 Heritage Insurance 380,555 4.0
7 USAA 378,257 3.9
8 UPC Insurance  353,797 3.7
9 Security First Insurance Co. 345,809 3.6
10 Progressive  338,733 3.5

(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 Life Insurance/Annuities In Florida By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Prudential Financial Inc.  $2,337,497 6.6%
2 American International Group (AIG) 2,027,533 5.8
3 Lincoln National Corp.  2,011,188 5.7
4 Nationwide Mutual Group  1,792,596 5.1
5 Massachusetts Mutual Life Insurance Co.  1,687,885 4.8
6 Transamerica 1,533,570 4.4
7 Jackson National Life Group  1,290,607 3.7
8 New York Life Insurance Group  1,246,791 3.5
9 John Hancock Life Insurance Co. 1,219,260 3.5
10 MetLife Inc.  1,070,093 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 Florida By Direct Premiums Written, 2018 (1)

Rank Group/company Direct premiums written ($000) Market share
1 Berkshire Hathaway Inc.  $5,160,726 25.2%
2 Progressive  3,749,329 18.3
3 State Farm  3,014,788 14.7
4 Allstate Corp. 1,897,567 9.3
5 USAA  1,445,356 7.1
6 Liberty Mutual  623,916 3.1
7 Travelers  447,360 2.2
8 National General Holdings Corp. 405,860 2.0
9 Kemper  363,696 1.8
10 Auto-Owners Insurance  346,468 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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