A Firm Foundation: How Insurance Supports the Economy

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

The insurance industry in Maryland 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 49,504 jobs in Maryland in 2017. The Maryland insurance industry accounted for about $4.2 billion in compensation in 2017.

Gross State Product

The insurance industry contributed $9.4 billion to the Maryland gross state product (GSP) in 2016, accounting for 2.45 percent of the state GSP.

Taxes

Premium taxes paid by insurance companies in Maryland totaled $516.5 million in 2017.

Premiums

Direct premiums written by property/casualty insurance companies in Maryland totaled $11.8 billion in 2017. Premiums written by life/annuity insurance companies totaled $13.3 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 Maryland surplus lines market accounted for $497.3 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 Maryland as measured by direct property/casualty incurred losses, were $6.9 billion. Life insurance claims and benefits payouts in Maryland totaled $9.7 billion in 2017.

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 Maryland By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Chubb $352,661 7.0%
2 Travelers Companies Inc. 316,155 6.3
3 Erie Insurance 243,592 4.8
4 The Hartford 228,918 4.6
5 Liberty Mutual 209,500 4.2
6 CNA 208,262 4.1
7 Chesapeake Employers' Insurance Co. 203,819 4.1
8 Zurich 177,970 3.5
9  American International Group (AIG) 162,846 3.2
10 Nationwide Mutual Group 162,312 3.2

(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 Homeowners Insurance In Maryland By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $333,203 18.1%
2 Allstate Corp. 217,415 11.8
3 Erie Insurance 206,609 11.2
4 USAA 202,589 11.0
5 Travelers 179,954 9.8
6 Liberty Mutual 150,590 8.2
7 Nationwide 137,541 7.5
8 American Family Insurance 79,266 4.3
9 Chubb 48,010 2.6
10 The Hartford 24,751 1.3

(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 Life Insurance/Annuities In Maryland By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Prudential Financial Inc. $687,470 6.6%
2 Lincoln National Corp. 618,063 5.9
3 John Hancock Life Insurance Co. 576,623 5.5
4 Nationwide Mutual Group 524,551 5.0
5 TIAA 463,780 4.5
6 New York Life Insurance Group 458,932 4.4
7 Massachusetts Mutual Life Insurance Co. 442,851 4.3
8 Jackson National Life Group 411,927 4.0
9 American International Group (AIG) 403,439 3.9
10 Principal Financial Group Inc. 383,486 3.7

(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 Maryland By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Berkshire Hathaway Inc.  $1,289,470 24.4%
2 State Farm  967,626 18.3
3 Allstate Corp.  611,327 11.6
4 USAA  471,969 8.9
5 Erie Insurance  416,530 7.9
6 Progressive  358,134 6.8
7 Nationwide  341,678 6.5
8 Liberty Mutual  173,446 3.3
9 Travelers Companies Inc.  94,055 1.8
10 Maryland Automobile Insurance Fund 83,021 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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