A Firm Foundation: How Insurance Supports the Economy

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

The insurance industry in Michigan 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 81,355 jobs in Michigan in 2016. The Michigan insurance industry accounted for about $5.6 billion in compensation in 2016.

Gross State Product

The insurance industry contributed $13.5 billion to the Michigan gross state product (GSP) in 2015, accounting for 2.88 percent of the state GSP.

Taxes

Premium taxes paid by insurance companies in Michigan totaled $328.1 million in 2016.

Premiums

Direct premiums written by property/casualty insurance companies in Michigan totaled $18.5 billion in 2016. In addition, premiums written by life/health insurance companies totaled $19.7 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 Michigan surplus lines market accounted for $598.4 million in gross premiums written in 2014, 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 2016 these payments in Michigan as measured by direct property/casualty incurred losses, were $12.1 billion. Life insurance claims and benefits payouts in Michigan totaled $16.1 billion in 2016.

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. Michigan has suffered damage from five of the fifteen most severe winter storms in the United States.

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 Michigan By Direct Premiums Written, 2017 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Auto-Owners Insurance Group  $395,029 5.6%
2 Travelers Companies Inc. 335,546 4.8
3 Motors Insurance Corporation 299,225 4.2
4 Chubb Ltd. 274,908 3.9
5 Zurich Insurance Group (2) 265,569 3.8
6 Liberty Mutual 262,396 3.7
7 AF Group 236,805 3.4
8 American Road Insurance Co. 233,739 3.3
9 CNA Financial Corp. 218,210 3.1
10 American International Group (AIG) 201,500 2.9

(1) Before reinsurance transactions.
(2) Data for Farmers Insurance Group of Companies and Zurich Financial Group (which owns Farmers' management company) are reported separately by S&P Global Market Intelligence.

Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.

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Top 10 Writers Of Homeowners Insurance In Michigan By Direct Premiums Written, 2017 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm  $471,855 17.0%
2 Auto-Owners Insurance Group  405,660 14.7
3 Auto Club Insurance Association  391,017 14.1
4 Allstate Corp. 241,469 8.7
5 Hanover Insurance Group Inc. 224,043 8.1
6 Michigan Farm Bureau 157,198 5.7
7 Liberty Mutual 138,814 5.0
8 Farmers Insurance Group of Companies (2) 109,592 4.0
9 USAA Insurance Group 86,900 3.1
10 Frankenmuth Insurance  78,877 2.8

(1) Before reinsurance transactions.
(2) Data for Farmers Insurance Group of Companies and Zurich Financial Group (which owns Farmers' management company) are reported separately by S&P Global Market Intelligence.

Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.

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Top 10 Writers Of Life Insurance And Annuity Considerations In Michigan, 2015 (1)

 

Rank Group/company Premiums and annuity considerations ($000) Market share
1 Jackson National Life Group   $1,162,238 7.1%
2 MetLife Inc.   1,068,096 6.5
3 Prudential Financial Inc.   851,443 5.2
4 Lincoln National Corp.   761,048 4.6
5 TIAA   735,429 4.5
6 Manulife Financial Corp.   708,771 4.3
7 American International Group (AIG)   662,394 4.0
8 AEGON   565,921 3.5
9 Massachusetts Mutual Life Insurance Co.   556,249 3.4
10 Principal Financial Group Inc.   528,742 3.2

(1) Includes life insurance, annuity considerations, deposit-type contract funds and other considerations; excludes accident and health insurance from life/health insurers. Before reinsurance transactions.

Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.

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Top 10 Writers Of Private Passenger Auto Insurance In Michigan By Direct Premiums Written, 2017 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm  $1,662,966 18.5%
2 Private Passenger Club Insurance Association 1,421,253 15.8
3 Progressive  1,261,150 14.1
4 Private Passenger-Owners Insurance Group  888,716 9.9
5 Allstate Corp. 731,916 8.2
6 Hanover Insurance Group Inc. 535,020 6.0
7 Michigan Farm Bureau 410,895 4.6
8 Liberty Mutual 390,079 4.3
9 USAA Insurance Group 271,157 3.0
10 Frankenmuth Insurance 157,962 1.8

(1) Before reinsurance transactions.
(2) Data for Farmers Insurance Group of Companies and Zurich Financial Group (which owns Farmers' management company) are reported separately by S&P Global Market Intelligence.

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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