A Firm Foundation: How Insurance Supports the Economy

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

The insurance industry in Kentucky 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 44,356 jobs in Kentucky in 2017. The Kentucky insurance industry accounted for about $3.4 billion in compensation in 2017.

Gross State Product

The insurance industry contributed $5.3 billion to the Kentucky gross state product (GSP) in 2015, accounting for 2.77 percent of the state GSP.

Taxes

Premium taxes paid by insurance companies in Kentucky totaled $145.3 million in 2016.

Premiums

Direct premiums written by property/casualty insurance companies in Kentucky totaled $7.1 billion in 2016. In addition, premiums written by life/health insurance companies totaled $7.3 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 Kentucky surplus lines market accounted for $215.7 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 Kentucky as measured by direct property/casualty incurred losses, were $4.2 billion. Life insurance claims and benefits payouts in Kentucky totaled $5.3 billion in 2016.

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 Kentucky By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Liberty Mutual $221,290 6.9%
2 Travelers 163,783 5.1
3 Kentucky Employers' Mutual Insurance 162,765 5.0
4 Zurich 135,596 4.2
5 CNA 129,457 4.0
6 Chubb 125,009 3.9
7 The Cincinnati Insurance Cos. 116,018 3.6
8 Kentucky Farm Bureau 103,959 3.2
9 American International Group (AIG) 91,246 2.8
10 Great American Insurance 74,064 2.3

(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 Kentucky By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $288,233 23.7%
2 Kentucky Farm Bureau 273,079 22.4
3 Liberty Mutual 119,154 9.8
4 Allstate Corp. 78,716 6.5
5 USAA Insurance Group 60,486 5.0
6 Travelers Companies Inc. 37,707 3.1
7 Auto-Owners Insurance Co. 33,549 2.8
8 Nationwide Mutual Group 28,042 2.3
9 State Auto  27,383 2.2
10 The Cincinnati Insurance Cos.  26,279 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 Life Insurance And Annuity Considerations In Kentucky, 2015 (1)

 

Rank Group/company Premiums and annuity considerations ($000) Market share
1 MetLife Inc.   $320,567 6.5%
2 AEGON   274,435 5.6
3 American International Group (AIG)   267,751 5.5
4 Lincoln National Corp.   235,526 4.8
5 Jackson National Life Group   226,432 4.6
6 Voya Financial Inc.   216,440 4.4
7 Prudential Financial Inc.   214,216 4.4
8 New York Life Insurance Group   205,347 4.2
9 Manulife Financial Corp.   180,373 3.7
10 Massachusetts Mutual Life Insurance Co.   163,224 3.3

(1) Includes life insurance, annuity considerations, deposit-type contract funds and other considerations; excludes accident and health insurance from life/health insurers. 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 Kentucky By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $715,904 22.5%
2 Kentucky Farm Bureau 602,620 18.9
3 Progressive 297,873 9.3
4 Berkshire Hathaway Inc. 220,760 6.9
5 Liberty Mutual 206,202 6.5
6 Allstate Corp. 195,781 6.1
7 USAA Insurance Group 157,857 5.0
8 Nationwide Mutual Group 72,722 2.3
9 Shelter Insurance  61,454 1.9
10 Auto-Owners Insurance Co. 61,335 1.9

(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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