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 84,333 jobs in Massachusetts in 2018. The Massachusetts insurance industry accounted for about $9.7 billion in compensation in 2018.

Gross State Product

The insurance industry contributed $16.0 billion to the Massachusetts gross state product (GSP) in 2017, accounting for 2.95 percent of the state GSP.

Taxes

Premium taxes paid by insurance companies in Massachusetts totaled $445.4 million in 2019.

Premiums

Direct premiums written by property/casualty insurance companies in Massachusetts totaled $14.9 billion in 2019. Premiums written by life/annuity insurance companies totaled $21.5 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 $1.2 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 Massachusetts as measured by direct property/casualty incurred losses, were $8.1 billion. Life insurance claims and benefits payouts in Massachusetts totaled $19.8 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. 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.  The state is also prone to wildfires and flooding.

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, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Travelers Companies Inc. $600,697 7.4%
2 Chubb 569,966 7.0
3 Liberty Mutual 527,145 6.5
4 American International Group (AIG) 386,073 4.7
5 Hartford Financial Services 300,050 3.7
6 Zurich 260,966 3.2
7 CNA 255,958 3.1
8 W. R. Berkley Corp. 254,195 3.1
9 Tokio Marine Group 243,665 3.0
10 Berkshire Hathaway Inc. 229,080 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, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 MAPFRE $336,455 13.1%
2 Liberty Mutual 250,642 9.8
3 Safety Insurance 179,539 7.0
4 Chubb 162,516 6.3
5 Andover Companies 156,578 6.1
6 Arbella Insurance 144,267 5.6
7 Amica 106,360 4.1
8 Travelers 104,646 4.1
9 USAA 104,629 4.1
10 Vermont Mutual Insurance 95,270 3.7

(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, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 MassMutual   $1,995,475 11.3%
2 MetLife   1,298,003 7.4
3 Voya Financial Inc.   1,116,190 6.3
4 Lincoln Financial   1,066,493 6.1
5 New York Life   1,037,306 5.9
6 Prudential Financial Inc.   962,339 5.5
7 John Hancock   920,246 5.2
8 Jackson   692,605 3.9
9 TIAA   672,341 3.8
10 Nationwide   546,695 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 Massachusetts By Direct Premiums Written, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 MAPFRE $1,225,323 22.0%
2 Berkshire Hathaway Inc. 781,910 14.0
3 Liberty Mutual 575,478 10.3
4 Safety Insurance 450,304 8.1
5 Arbella Insurance 418,055 7.5
6 Plymouth Rock Co. 375,540 6.7
7 Progressive 316,332 5.7
8 MetLife 190,686 3.4
9 Travelers 183,166 3.3
10 USAA 177,003 3.2

(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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