A Firm Foundation: How Insurance Supports the Economy

Key Facts: The Insurance Industry’s Contribution To The Iowa State Economy

The insurance industry in Iowa 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 58,302 jobs in Iowa in 2017. The Iowa insurance industry accounted for about $4.7 billion in compensation in 2017.

Gross State Product

The insurance industry contributed $19.3 billion to the Iowa gross state product (GSP) in 2016, accounting for 10.73 percent of the state GSP.

Taxes

Premium taxes paid by insurance companies in Iowa totaled $113.5 million in 2017.

Premiums

Direct premiums written by property/casualty insurance companies in Iowa totaled $6.5 billion in 2017. Premiums written by life/annuity insurance companies totaled $22.3 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 Iowa surplus lines market accounted for $291.2 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 2017 these payments in Iowa as measured by direct property/casualty incurred losses, were $3.7 billion. Life insurance claims and benefits payouts in Iowa totaled $7.6 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. Flooding, tornadoes and winter storms are some of the natural disasters that have occurred or could occur in Iowa.

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 Iowa By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Chubb  $264,880 7.3%
2 EMC Insurance  179,354 4.9
3 Travelers  173,424 4.8
4 Nationwide  156,587 4.3
5 Zurich  155,824 4.3
6 Farmers Mutual Hail  145,183 4.0
7 Great American Insurance  125,592 3.5
8 QBE  102,853 2.8
9 Old Republic Insurance  96,793 2.7
10 Farm Bureau Financial Services  96,247 2.6

(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 Iowa By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $211,028 26.0%
2 Nationwide Mutual Group 99,119 12.2
3 American Family Insurance Group 71,064 8.8
4 Farm Bureau Financial Services 70,986 8.7
5 Auto-Owners Insurance Co. 33,916 4.2
6 IMT Mutual Holding Co. 29,631 3.7
7 West Bend Mutual Insurance Co. 28,681 3.5
8 Allstate Corp. 23,201 2.9
9 Farmers Insurance Group  21,778 2.7
10 USAA Insurance Group 20,547 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 Life Insurance/Annuities In Iowa By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Principal Financial Group Inc.  $6,164,605 36.5%
2 Transamerica 3,069,939 18.2
3 MetLife Inc.  1,404,891 8.3
4 Iowa Farm Bureau Federation 393,269 2.3
5 Reinsurance Group America Inc.  382,817 2.3
6 Nationwide Mutual Group  348,340 2.1
7 TIAA 310,778 1.8
8 Voya Insurance & Annuity Co. 298,689 1.8
9 New York Life Insurance Group  277,641 1.7
10 Prudential Financial Inc.  262,248 1.6

(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.

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

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $386,433 21.0%
2 Progressive 323,463 17.6
3 Nationwide Mutual Group 168,276 9.2
4 Farm Bureau Financial Services 124,634 6.8
5 American Family Insurance Group 117,824 6.4
6 Grinnell Mutual Reinsurance Co 89,120 4.9
7 Berkshire Hathaway Inc. 68,664 3.7
8 IMT Mutual Holding Co. 61,453 3.3
9 Allstate Corp. 60,256 3.3
10 Auto-Owners Insurance Co. 45,441 2.5

(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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