A Firm Foundation: How Insurance Supports the Economy

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

The insurance industry in Massachusetts 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 83,889 jobs in Massachusetts in 2017. The Massachusetts insurance industry accounted for about $9.0 billion in compensation in 2017.

Gross State Product

The insurance industry contributed $16.7 billion to the Massachusetts gross state product (GSP) in 2016, accounting for 3.22 percent of the state GSP.

Taxes

Premium taxes paid by insurance companies in Massachusetts totaled $397.5 million in 2017.

Premiums

Direct premiums written by property/casualty insurance companies in Massachusetts totaled $14.9 billion in 2017. Premiums written by life/annuity insurance companies totaled $18.0 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 Massachusetts surplus lines market accounted for $983.9 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 Massachusetts as measured by direct property/casualty incurred losses, were $7.0 billion. Life insurance claims and benefits payouts in Massachusetts totaled $16.2 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. Massachusetts was one of 14 states affected by August 2011’s Hurricane Irene, the first hurricane to hit the U.S. since Hurricane Ike in 2008. Irene impacted 14 states, causing a total of $4.3 billion in insured property damage, according to the Property Claim Services unit of Verisk, not including flood losses covered under the National Flood Insurance Program (NFIP). A study by AIR Worldwide put the insured value of coastal areas in Massachusetts at $849.6 billion in 2012, accounting for 54 percent of the state’s total insured property exposure. The state is also prone to wildfires.

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 Massachusetts By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Travelers Companies Inc. $575,412 7.6%
2 Chubb 526,427 6.9
3 Liberty Mutual 474,374 6.3
4  American International Group (AIG) 397,616 5.2
5 W. R. Berkley Corp. 252,044 3.3
6 The Hartford 251,115 3.3
7 CNA 250,587 3.3
8 Zurich 232,396 3.1
9 Tokio Marine 213,857 2.8
10 Arbella Insurance 212,763 2.8

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

 

Rank Group/company Direct premiums written ($000) Market share
1 MAPFRE $327,224 13.3%
2 Liberty Mutual 252,514 10.3
3 Safety Insurance 176,691 7.2
4 Chubb 161,243 6.6
5 Andover Companies 149,814 6.1
6 Arbella Insurance 142,695 5.8
7 Amica 99,992 4.1
8 USAA 97,724 4.0
9 Travelers 95,021 3.9
10 Vermont Mutual Insurance 93,062 3.8

(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 Massachusetts By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Massachusetts Mutual Life Insurance Co. $2,205,311 13.1%
2 Voya Financial Inc. 1,275,128 7.6
3 New York Life Insurance Group  945,718 5.6
4 MetLife Inc.  882,274 5.3
5 John Hancock Life Insurance Co. 858,619 5.1
6 Prudential Financial Inc. 806,639 4.8
7 Jackson National Life Group 776,977 4.6
8 TIAA 753,476 4.5
9 Lincoln National Corp. 661,650 3.9
10 Principal Financial Group Inc. 545,047 3.2

(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 Massachusetts By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 MAPFRE  $1,257,332 23.3%
2 Berkshire Hathaway Inc.  686,548 12.7
3 Liberty Mutual  579,253 10.7
4 Safety Insurance  454,157 8.4
5 Arbella Insurance  415,596 7.7
6 Plymouth Rock Co.  359,767 6.7
7 Progressive  255,015 4.7
8 MetLife  202,261 3.7
9 Travelers Companies Inc.  170,904 3.2
10 USAA  168,944 3.1

(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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