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 63,602 jobs in Indiana in 2016. The Indiana insurance industry accounted for about $4.3 billion in compensation in 2016.

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 $475.3 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 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, 2017 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Liberty Mutual $303,659 6.0%
2 Travelers Companies Inc. 290,133 5.8
3 Chubb Ltd. 229,060 4.6
4 American International Group (AIG) 213,658 4.2
5 Cincinnati Financial Corp. 204,561 4.1
6 Zurich Insurance Group (2) 188,532 3.7
7 CNA Financial Corp. 172,460 3.4
8 Auto-Owners Insurance Group  171,405 3.4
9 Nationwide Mutual Group 122,245 2.4
10 American Financial Group Inc. 113,282 2.3

(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 Indiana By Direct Premiums Written, 2017 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm  $490,727 25.8%
2 Indiana Farm Bureau Inc. 153,481 8.1
3 Liberty Mutual 149,992 7.9
4 Allstate Corp. 148,039 7.8
5 American Family Insurance Group 120,723 6.3
6 Erie Insurance Group 108,500 5.7
7 Auto-Owners Insurance Group  75,564 4.0
8 USAA Insurance Group 56,840 3.0
9 Travelers Companies Inc. 53,619 2.8
10 Farmers Insurance Group of Companies (2) 52,155 2.7

(1) Before reinsurance transactions.
(2) Chubb Ltd. data reflects the 2015 merger with Ace Ltd.
(3) 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.

View Archived Tables

Top 10 Writers Of Private Passenger Auto Insurance In Indiana By Direct Premiums Written, 2017 (1)

Rank Group/company Direct premiums written ($000) Market share
1 State Farm  $907,710 24.0%
2 Progressive  428,466 11.4
3 Allstate Corp. 287,390 7.6
4 Indiana Farm Bureau Inc. 277,065 7.3
5 Berkshire Hathaway Inc. 233,428 6.2
6 Liberty Mutual 185,530 4.9
7 American Family Insurance Group 171,186 4.5
8 Erie Insurance Group 143,261 3.8
9 USAA Insurance Group 98,402 2.6
10 Private Passenger-Owners Insurance Group  91,976 2.4

(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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