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 10,855 jobs in Hawaii in 2016. The Hawaii insurance industry accounted for about $672 million in compensation in 2016.

Gross State Product

The insurance industry contributed $1.4 billion to the Hawaii gross state product (GSP) in 2015, accounting for 1.8 percent of the state GSP.

Taxes

Premium taxes paid by insurance companies in Hawaii totaled $157.9 million in 2016.

Premiums

Direct premiums written by property/casualty insurance companies in Hawaii totaled $2.4 billion in 2016. In addition, premiums written by life/health insurance companies totaled $3.5 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 Hawaii surplus lines market accounted for $252.9 million in gross premiums written in 2016, 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 2016 these payments in Hawaii as measured by direct property/casualty incurred losses, were $1.0 billion. Life insurance claims and benefits payouts in Hawaii totaled $2.2 billion in 2016.

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, 2017 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Tokio Marine Group $191,510 14.2%
2 Island Insurance Companies 84,181 6.2
3 Hawaii Employers' Mutual Insurance Co. 72,655 5.4
4 American International Group (AIG) 71,883 5.3
5 Chubb Ltd. 63,961 4.7
6 Allianz 54,338 4.0
7 MS&AD Insurance 54,336 4.0
8 Zurich Insurance Group (2) 52,899 3.9
9 Liberty Mutual 51,030 3.8
10 Fairfax Financial 44,702 3.3

(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 Hawaii By Direct Premiums Written, 2017 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $121,356 31.6%
2 Heritage Insurance Hldgs Inc. 55,288 14.4
3 Tokio Marine Group 36,632 9.6
4 USAA Insurance Group 29,151 7.6
5 Allstate Corp. 22,509 5.9
6 DB Insurance Co. Ltd. 19,642 5.1
7 Island Insurance Companies 14,914 3.9
8 Liberty Mutual 13,190 3.4
9 American International Group (AIG) 11,416 3.0
10 Ocean Harbor Insurance 11,340 3.0

(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 Private Passenger Auto Insurance In Hawaii By Direct Premiums Written, 2017 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Berkshire Hathaway Inc. $198,986 26.4%
2 State Farm 139,679 18.6
3 USAA Insurance Group 90,542 12.0
4 Allstate Corp. 67,866 9.0
5 Progressive 53,397 7.1
6 Farmers Insurance Group of Companies (2) 51,498 6.8
7 Tokio Marine Group 38,833 5.2
8 Liberty Mutual 34,387 4.6
9 Island Insurance Companies 24,127 3.2
10 MS&AD Insurance 17,932 2.4

(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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State By State Comparison Tables

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