A Firm Foundation: How Insurance Supports the Economy

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

The insurance industry in Hawaii 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 11,316 jobs in Hawaii in 2018. The Hawaii insurance industry accounted for about $747.3 million in compensation in 2018.

Gross State Product

The insurance industry contributed $1.7 billion to the Hawaii gross state product (GSP) in 2017, accounting for 1.90 percent of the state GSP.

Taxes

Premium taxes paid by insurance companies in Hawaii totaled $179.7 million in 2019.

Premiums

Direct premiums written by property/casualty insurance companies in Hawaii totaled $2.5 billion in 2019. Premiums written by life/annuity insurance companies totaled $4.0 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 Hawaii surplus lines market accounted for $272.2 million in gross premiums written in 2018, 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 2019 these payments in Hawaii as measured by direct property/casualty incurred losses, were $1.3 billion. Life insurance claims and benefits payouts in Hawaii totaled $2.7 billion in 2019.

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. Flooding, hurricanes, tsunamis, lava flow from volcanic activity and earthquakes are some of the natural disasters that have occurred or could occur in Hawaii.

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 Hawaii By Direct Premiums Written, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Tokio Marine Group $212,325 14.4%
2 Island Insurance Companies 88,299 6.0
3 Chubb 73,084 5.0
4 American International Group (AIG) 71,548 4.9
5 Hawaii Employers' Mutual Insurance Co. 68,928 4.7
6 Allianz 60,244 4.1
7 Zurich 55,277 3.7
8 Liberty Mutual 53,439 3.6
9 MS&AD Insurance Group Holdings Inc. 52,223 3.5
10 DB Insurance Co. Ltd. 48,395 3.3

(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 Hawaii By Direct Premiums Written, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $127,008 30.6%
2 Heritage Insurance 53,317 12.8
3 Tokio Marine Group 48,565 11.7
4 USAA Insurance Group 29,297 7.0
5 Allstate Corp. 24,856 6.0
6 DB Insurance Co. Ltd. 21,829 5.3
7 Liberty Mutual 17,746 4.3
8 Island Insurance Companies 16,790 4.0
9 RLI 13,119 3.2
10 American International Group (AIG) 11,506 2.8

(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/Annuities In Hawaii By Direct Premiums Written, 2019 (1)

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Rank Group/company Direct premiums written ($000) Market share
1 Prudential Financial Inc.   $224,809 8.0%
2 New York Life   196,363 7.0
3 Transamerica   183,596 6.5
4 Pacific Life   173,507 6.2
5 Lincoln Financial   139,251 5.0
6 Jackson   128,325 4.6
7 Global Atlantic   126,702 4.5
8 AIG   111,837 4.0
9 Nationwide   99,682 3.5
10 MassMutual   92,472 3.3

(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 Hawaii By Direct Premiums Written, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Berkshire Hathaway Inc. $222,775 27.8%
2 State Farm 146,290 18.3
3 USAA Insurance Group 95,364 11.9
4 Allstate Corp. 73,542 9.2
5 Progressive 61,678 7.7
6 Farmers Insurance Group 44,312 5.5
7 Tokio Marine Group 40,233 5.0
8 Liberty Mutual 39,484 4.9
9 Island Insurance Companies 25,017 3.1
10 MS&AD Insurance Group Holdings Inc. 17,557 2.2

(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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