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 38,617 jobs in Louisiana in 2018. The Louisiana insurance industry accounted for about $2.4 billion in compensation in 2018.

Gross State Product

The insurance industry contributed $5.3 billion to the Louisiana gross state product (GSP) in 2017, accounting for 2.22 percent of the state GSP.

Taxes

Premium taxes paid by insurance companies in Louisiana totaled $900.9 million in 2019.

Premiums

Direct premiums written by property/casualty insurance companies in Louisiana totaled $11.5 billion in 2019. Premiums written by life/annuity insurance companies totaled $9.3 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 Louisiana surplus lines market accounted for $1.5 billion 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 Louisiana as measured by direct property/casualty incurred losses, were $6.9 billion. Life insurance claims and benefits payouts in Louisiana totaled $6.8 billion in 2019.

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.

The costliest Louisiana hurricane ever was Hurricane Katrina, which caused nearly $25.4 billion in insured losses in Louisiana in 2005 (about $33.4 billion in 2019 dollars). These losses do not include flood damage covered under the federal government’s National Flood Insurance Program (NFIP).

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, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Travelers Companies Inc. $284,885 5.2%
2 CNA 238,615 4.3
3 Liberty Mutual 234,393 4.2
4 Chubb 225,259 4.1
5 Louisiana Workers' Comp Corp. 213,703 3.9
6 Zurich 205,864 3.7
7 American International Group (AIG) 200,084 3.6
8 Progressive 140,492 2.5
9 State Farm 134,479 2.4
10 Nationwide Mutual Group 126,127 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 Louisiana By Direct Premiums Written, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $497,373 25.6%
2 Allstate Corp. 212,629 10.9
3 USAA Insurance Group 121,149 6.2
4 Liberty Mutual 109,098 5.6
5 LA Farm Bureau Mutual Insurance Co. 92,586 4.8
6 UPC Insurance 78,799 4.1
7 FEDNAT 75,778 3.9
8 Progressive 75,518 3.9
9 TWIMG LLC 60,209 3.1
10 GeoVera Holdings 35,643 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, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 New York Life   $409,897 5.9%
2 Lincoln Financial   403,091 5.8
3 AIG   331,645 4.8
4 Prudential Financial Inc.   320,026 4.6
5 Jackson   257,695 3.7
6 Nationwide   216,074 3.1
7 Transamerica   205,181 3.0
8 MassMutual   203,294 2.9
9 Pacific Life   196,253 2.8
10 Athene   195,284 2.8

(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, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $1,442,013 29.5%
2 Progressive 803,098 16.4
3 Berkshire Hathaway Inc. 571,942 11.7
4 Allstate Corp. 540,138 11.1
5 USAA Insurance Group 294,072 6.0
6 Southern Farm Bureau Casualty 244,193 5.0
7 Liberty Mutual 197,964 4.1
8 GoAuto Insurance Co. 163,080 3.3
9 National General Holdings Corp. 104,747 2.1
10 Shelter Insurance 69,821 1.4

(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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