A Firm Foundation: How Insurance Supports the Economy

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

The insurance industry in Indiana 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 64,769 jobs in Indiana in 2017. The Indiana insurance industry accounted for about $4.6 billion in compensation in 2017.

Gross State Product

The insurance industry contributed $12.1 billion to the Indiana gross state product (GSP) in 2015, accounting for 3.6 percent of the state GSP.

Taxes

Premium taxes paid by insurance companies in Indiana totaled $235.0 million in 2016.

Premiums

Direct premiums written by property/casualty insurance companies in Indiana totaled $10.8 billion in 2016. In addition, premiums written by life/health insurance companies totaled $15.2 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 Indiana surplus lines market accounted for $473.3 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 2016 these payments in Indiana as measured by direct property/casualty incurred losses, were $6.2 billion. Life insurance claims and benefits payouts in Indiana totaled $9.1 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 such as a catastrophic hurricane or storm or wildfire. Winter storms, heat waves, tornadoes, earthquakes and flooding are some of the natural disasters that have occurred or could occur in Indiana.

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 Indiana By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Travelers  $306,434 5.8%
2 Liberty Mutual  305,255 5.8
3 Chubb  221,960 4.2
4 American International Group (AIG)  213,755 4.1
5 The Cincinnati Insurance Cos.  206,492 3.9
6 Zurich  194,488 3.7
7 CNA  181,209 3.4
8 Auto-Owners Insurance  168,560 3.2
9 Nationwide  118,238 2.3
10 Indiana Farm Bureau  114,605 2.2

(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 Indiana By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $502,702 25.3%
2 Liberty Mutual 160,548 8.1
3 Allstate Corp. 160,309 8.1
4 Indiana Farm Bureau Inc. 159,919 8.0
5 American Family Insurance Group 128,036 6.4
6 Erie Insurance Group 111,355 5.6
7 Auto-Owners Insurance Co. 83,897 4.2
8 USAA Insurance Group 62,573 3.1
9 Travelers Companies Inc. 58,447 2.9
10 Farmers Insurance Group  52,027 2.6

(1) Before reinsurance transactions.

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

View Archived Tables

TTop 10 Writers Of Private Passenger Auto Insurance In Indiana By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $874,341 22.2%
2 Progressive 479,144 12.2
3 Allstate Corp. 303,137 7.7
4 Indiana Farm Bureau Inc. 286,088 7.3
5 Berkshire Hathaway Inc. 261,114 6.6
6 Liberty Mutual 199,415 5.1
7 American Family Insurance Group 180,095 4.6
8 Erie Insurance Group 154,917 3.9
9 Auto-Owners Insurance Co. 108,614 2.8
10 USAA Insurance Group 108,601 2.8

(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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