A Firm Foundation: How Insurance Supports the Economy

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

The insurance industry in Minnesota 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 74,374 jobs in Minnesota in 2016. The Minnesota insurance industry accounted for about $6.9 billion in compensation in 2016.

Gross State Product

The insurance industry contributed $12.9 billion to the Minnesota gross state product (GSP) in 2015, accounting for 3.95 percent of the state GSP.

Taxes

Premium taxes paid by insurance companies in Minnesota totaled $457.9 million in 2016.

Premiums

Direct premiums written by property/casualty insurance companies in Minnesota totaled $11.2 billion in 2016. In addition, premiums written by life/health insurance companies totaled $13.4 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 Minnesota surplus lines market accounted for $450.5 million in gross premiums written in 2016, 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 Minnesota as measured by direct property/casualty incurred losses, were $5.8 billion. Life insurance claims and benefits payouts in Minnesota totaled $10.7 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 storm or wildfire. Minnesota has suffered damage from two of the fifteen most severe winter storms in the United States and is also prone to hail events.

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 Minnesota By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Zurich  $362,820 6.4%
2 Travelers  322,782 5.7
3 Chubb  273,758 4.8
4 Auto-Owners Insurance  201,996 3.6
5 Liberty Mutual  197,637 3.5
6 American International Group (AIG)  179,718 3.2
7 QBE  147,095 2.6
8 CNA  142,516 2.5
9 State Farm  131,479 2.3
10 Western National Insurance  127,135 2.2

(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 Minnesota By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $555,674 25.4%
2 American Family Insurance Group 316,905 14.5
3 Farmers Insurance Group  178,269 8.1
4 Auto-Owners Insurance Co. 120,172 5.5
5 Allstate Corp. 119,405 5.5
6 Liberty Mutual 94,018 4.3
7 Travelers Companies Inc. 90,084 4.1
8 USAA Insurance Group 81,607 3.7
9 Auto Club Insurance Association Group 53,778 2.5
10 Progressive 47,561 2.2

(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 Life Insurance And Annuity Considerations In Minnesota, 2015 (1)

 

Rank Group/company Premiums and annuity considerations ($000) Market share
1 Securian Financial Group   $1,013,038 8.6%
2 Massachusetts Mutual Life Insurance Co. 788,508 6.7
3 Prudential Financial Inc.   612,986 5.2
4 Lincoln National Corp.   598,278 5.1
5 Manulife Financial Corp.   567,452 4.8
6 Principal Financial Group Inc.   560,653 4.8
7 Jackson National Life Group   531,906 4.5
8 American International Group (AIG)   440,031 3.7
9 Allianz Group   422,037 3.6
10 Northwestern Mutual Life Insurance Co. 413,426 3.5

(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 Minnesota By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $901,781 23.8%
2 Progressive 661,240 17.4
3 American Family Insurance Group 457,648 12.1
4 Farmers Insurance Group  214,331 5.6
5 Allstate Corp. 209,762 5.5
6 Berkshire Hathaway Inc. 147,139 3.9
7 USAA Insurance Group 120,858 3.2
8 Auto-Owners Insurance Co. 119,701 3.2
9 Travelers Companies Inc. 113,251 3.0
10 Liberty Mutual 109,104 2.9

(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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