A Firm Foundation: How Insurance Supports the Economy

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

The insurance industry in Montana 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 8,902 jobs in Montana in 2017. The Montana insurance industry accounted for about $490.6 million in compensation in 2017.

Gross State Product

The insurance industry contributed $798 million to the Montana gross state product (GSP) in 2016, accounting for 1.75 percent of the state GSP.

Taxes

Premium taxes paid by insurance companies in Montana totaled $108.4 million in 2017.

Premiums

Direct premiums written by property/casualty insurance companies in Montana totaled $2.4 billion in 2017. Premiums written by life/annuity insurance companies totaled $1.4 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 Montana surplus lines market accounted for $100.4 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 Montana as measured by direct property/casualty incurred losses, were $1.4 billion. Life insurance claims and benefits payouts in Montana totaled $1.1 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. Floods and wildfires are some of the natural disasters that have occurred or could occur in Montana.

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 Montana By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Montana State Fund $165,447 12.6%
2 Liberty Mutual 106,586 8.1
3 Chubb 101,076 7.7
4 Travelers 69,043 5.2
5 QBE 67,352 5.1
6 Zurich 60,979 4.6
7 The Cincinnati Insurance Cos. 50,283 3.8
8 Nationwide 37,316 2.8
9 Tokio Marine 32,780 2.5
10 Old Republic Insurance 28,084 2.1

(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 Montana By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $85,697 24.3%
2 Liberty Mutual 58,976 16.7
3 Farmers Insurance Group  46,506 13.2
4 Mtn W Farm Bureau Mutual Insurance Co. 26,882 7.6
5 USAA Insurance Group 21,645 6.1
6 Travelers Companies Inc. 17,871 5.1
7 Allstate Corp. 11,615 3.3
8 Farmers Union Mutual Insurance Co (MT) 10,257 2.9
9 Chubb 8,699 2.5
10 Hartford Financial Services 8,453 2.4

(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 Montana By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Prudential Financial Inc.  $126,108 11.7%
2 New York Life Insurance Group  76,568 7.1
3 Lincoln National Corp.  62,470 5.8
4 Transamerica 45,598 4.2
5 Northwestern Mutual Life Insurance Co.  40,291 3.7
6 Nationwide Mutual Group  40,150 3.7
7 Jackson National Life Group  39,175 3.6
8 John Hancock Life Insurance Co. 37,542 3.5
9 Massachusetts Mutual Life Insurance Co.  31,415 2.9
10 American International Group (AIG) 31,227 2.9

(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.

Top 10 Writers Of Private Passenger Auto Insurance In Montana By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $170,796 22.0%
2 Progressive 105,918 13.7
3 Liberty Mutual 96,151 12.4
4 Farmers Insurance Group  65,872 8.5
5 USAA Insurance Group 58,064 7.5
6 Berkshire Hathaway Inc. 45,755 5.9
7 Mountain West Farm Bureau Mutual Insurance Co. 42,260 5.5
8 Allstate Corp. 30,736 4.0
9 Travelers Companies Inc. 30,210 3.9
10 QBE Insurance Group Ltd. 23,740 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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