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 43,828 jobs in Kentucky in 2018. The Kentucky insurance industry accounted for about $3.6 billion in compensation in 2018.

Gross State Product

The insurance industry contributed $6.1 billion to the Kentucky gross state product (GSP) in 2017, accounting for 3.05 percent of the state GSP.

Taxes

Premium taxes paid by insurance companies in Kentucky totaled $173.1 million in 2019.

Premiums

Direct premiums written by property/casualty insurance companies in Kentucky totaled $7.5 billion in 2019. Premiums written by life/annuity insurance companies totaled $7.4 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 $245.4 million in gross premiums written in 2018, 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 2019 these payments in Kentucky as measured by direct property/casualty incurred losses, were $4.7 billion. Life insurance claims and benefits payouts in Kentucky totaled $6.4 billion in 2019.

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, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Liberty Mutual $206,037 6.2%
2 Travelers Companies Inc. 182,394 5.5
3 Kentucky Employers' Mutual Insurance 158,457 4.7
4 Zurich 136,714 4.1
5 CNA 131,547 3.9
6 Chubb 128,429 3.8
7 The Cincinnati Insurance Cos. 121,899 3.6
8 Kentucky Farm Bureau 105,749 3.2
9 American International Group (AIG) 78,956 2.4
10 Auto-Owners Insurance Co. 78,823 2.4

(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, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $293,463 23.4%
2 Kentucky Farm Bureau 269,357 21.5
3 Liberty Mutual 120,840 9.6
4 Allstate Corp. 82,434 6.6
5 USAA Insurance Group 66,871 5.3
6 Travelers Companies Inc. 43,029 3.4
7 Auto-Owners Insurance Co. 36,176 2.9
8 Erie Insurance Group 27,774 2.2
9 Nationwide Mutual Group 26,827 2.1
10 State Auto 26,619 2.1

(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 Kentucky By Direct Premiums Written, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Lincoln Financial   $380,083 6.8%
2 MetLife   301,935 5.4
3 MassMutual   289,501 5.2
4 Transamerica   281,051 5.0
5 Principal Financial Group Inc.   268,276 4.8
6 Prudential Financial Inc.   224,116 4.0
7 New York Life   186,252 3.3
8 Jackson   174,671 3.1
9 AIG   174,080 3.1
10 Voya Financial Inc.   173,278 3.1

(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.

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Top 10 Writers Of Private Passenger Auto Insurance In Kentucky By Direct Premiums Written, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $700,521 21.6%
2 Kentucky Farm Bureau 590,705 18.2
3 Progressive 349,357 10.8
4 Liberty Mutual 231,345 7.1
5 Berkshire Hathaway Inc. 211,263 6.5
6 Allstate Corp. 199,431 6.2
7 USAA Insurance Group 165,995 5.1
8 Erie Insurance Group 70,757 2.2
9 Auto-Owners Insurance Co. 66,958 2.1
10 Travelers Companies Inc. 63,237 2.0

(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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