A Firm Foundation: How Insurance Supports the Economy

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

The insurance industry in Louisiana 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 38,011 jobs in Louisiana in 2017. The Louisiana insurance industry accounted for about $2.3 billion in compensation in 2017.

Gross State Product

The insurance industry contributed $5.1 billion to the Louisiana gross state product (GSP) in 2016, accounting for 2.22 percent of the state GSP.

Taxes

Premium taxes paid by insurance companies in Louisiana totaled $814.0 million in 2017.

Premiums

Direct premiums written by property/casualty insurance companies in Louisiana totaled $11.5 billion in 2017. Premiums written by life/annuity insurance companies totaled $8.4 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 Louisiana surplus lines market accounted for $1.4 billion 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 Louisiana as measured by direct property/casualty incurred losses, were $6.1 billion. Life insurance claims and benefits payouts in Louisiana totaled $6.3 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. Louisiana is vulnerable to floods, hurricanes, wildfires and tornadoes.

Hurricane Katrina (2005) was the deadliest hurricane in Louisiana’s history, with about 1,800 fatalities reported. Katrina caused nearly $33 billion (in 2018 dollars) in insured losses in Louisiana in 2005 (excluding flood damage). An additional $13.1 billion in flood losses from Katrina was paid by the NFIP.

In 2017 Louisiana was impacted by flooding from Hurricane Harvey. In 2019 Hurricane Barry, a Category 1 storm made landfall in Louisiana on July 13. Barry brought heavy rain and wind to the north central Gulf coast. Loss estimates from Hurricane Barry range from $500 million to $900 million, according to leading catastrophe modelers.

Top Three States By Inflation-Adjusted Insured Catastrophe Losses, 1987-2016 (1)

(2016 $ billions)

(1) Adjusted for inflation through 2016 by ISO using the GDP implicit price deflator. Excludes catastrophes causing direct losses less than $25  million in 1997 dollars. Excludes flood damage covered by the federally administered National Flood Insurance Program.
(2) Includes the other 47 states plus Washington, D.C., Puerto Rico, and the U.S. Virgin Islands.

Source: The Property Claim Services® (PCS®) unit of ISO®, a Verisk Analytics® company.

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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 Louisiana By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Travelers Companies Inc. $280,207 5.4%
2 Liberty Mutual 239,035 4.6
3 CNA 230,311 4.4
4 Louisiana Workers' Comp Corp. 213,697 4.1
5 American International Group (AIG) 212,939 4.1
6 Chubb 203,279 3.9
7 Zurich 202,384 3.9
8 State Farm 133,357 2.6
9 Nationwide Mutual Group 116,986 2.2
10 Progressive 97,886 1.9

(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 Louisiana By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $497,617 26.2%
2 Allstate Corp. 214,225 11.3
3 Liberty Mutual 124,850 6.6
4 USAA 117,201 6.2
5 LA Farm Bureau Mutual Insurance Co. 92,696 4.9
6 Progressive 74,007 3.9
7 UPC Insurance 71,820 3.8
8 FEDNAT 37,186 2.0
9 Farmers Insurance Group of Companies 33,900 1.8
10 Lighthouse Property Insurance Corp. 33,390 1.8

(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 Louisiana By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Prudential Financial Inc. $474,370 6.9%
2 New York Life Insurance Group 425,832 6.2
3 Lincoln National Corp. 394,585 5.7
4 American International Group (AIG) 295,470 4.3
5 Massachusetts Mutual Life Insurance Co. 237,685 3.5
6 Jackson National Life Group 197,382 2.9
7 Nationwide Mutual Group 193,865 2.8
8 Great West 188,933 2.8
9 Allianz 186,926 2.7
10 John Hancock Life Insurance Co. 181,121 2.6

(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.

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

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $1,524,938 31.6%
2 Progressive 708,874 14.7
3 Allstate Corp 536,759 11.1
4 Berkshire Hathaway Inc.; 496,308 10.3
5 USAA 278,238 5.8
6 Liberty Mutual 248,785 5.2
7 Southern Farm Bureau Casualty 244,503 5.1
8 GoAuto Insurance Co. 165,254 3.4
9 National General Holdings Corp. 91,500 1.9
10 Safeway Insurance 78,247 1.6

(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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