A Firm Foundation: How Insurance Supports the Economy

Key Facts: The Insurance Industry’s Contribution To The New Jersey Economy

The insurance industry in New Jersey 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 105,977 jobs in New Jersey in 2018. The New Jersey insurance industry accounted for about $12.5 billion in compensation in 2018.

Gross State Product

The insurance industry contributed $19.9 billion to the New Jersey gross state product (GSP) in 2017, accounting for 3.34 percent of the state GSP.

Taxes

Premium taxes paid by insurance companies in New Jersey totaled $520.0 million in 2019.

Premiums

Direct premiums written by property/casualty insurance companies in New Jersey totaled $21.2 billion in 2019. Premiums written by life/annuity insurance companies totaled $33.7 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 New Jersey surplus lines market accounted for $1.6 billion 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 2019 these payments in New Jersey as measured by direct property/casualty incurred losses, were $13.5 billion. Life insurance claims and benefits payouts in New Jersey totaled $23.4 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. New Jersey was one of over a dozen states impacted by Hurricane Sandy in October 2012. Sandy caused $18.8 billion in U.S. insured property losses, excluding flood insurance claims covered by the federal flood insurance program, according to estimates from ISO’s PCS unit. Sandy was the fifth most costly U.S. hurricane, after hurricanes Katrina, Maria, Irma and Harvey.

Private insurance losses in New Jersey from Sandy totaled $6.3 billion, second only to New York’s $9.6 billion, according to ISO.

 

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 New Jersey By Direct Premiums Written, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Travelers Companies Inc. $723,299 6.2%
2 Liberty Mutual 666,899 5.7
3 Chubb 644,947 5.5
4 Hartford Financial Services 618,234 5.3
5 Berkshire Hathaway Inc. 528,125 4.5
6 NJM Insurance Group 521,056 4.4
7 Zurich 500,848 4.3
8 Selective 486,180 4.1
9 CNA 346,549 3.0
10 American International Group (AIG) 338,519 2.9

(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 New Jersey By Direct Premiums Written, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 NJM Insurance Group $302,296 10.5%
2 State Farm 296,286 10.3
3 Allstate Corp. 267,278 9.3
4 Liberty Mutual 240,260 8.4
5 Chubb 183,259 6.4
6 Travelers Companies Inc. 155,987 5.4
7 American Family Insurance Group 140,453 4.9
8 Plymouth Rock of New Jersey 132,587 4.6
9 USAA Insurance Group 119,661 4.2
10 National General Holdings Corp. 89,380 3.1

(1) Before reinsurance transactions.

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

View Archived Tables

Top 10 Writers Of Life Insurance/Annuities In New Jersey By Direct Premiums Written, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Prudential Financial Inc.   $3,356,943 13.3%
2 MassMutual   2,096,648 8.3
3 Lincoln Financial   1,278,791 5.1
4 Equitable Holdings   1,271,233 5.0
5 TIAA   1,112,751 4.4
6 MetLife   1,074,022 4.3
7 Transamerica   1,032,676 4.1
8 Jackson   1,028,650 4.1
9 Athene   993,581 3.9
10 AIG   979,179 3.9

(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.

View Archived Tables

Top 10 Writers Of Private Passenger Auto Insurance In New Jersey By Direct Premiums Written, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Berkshire Hathaway Inc. $1,740,325 22.8%
2 NJM Insurance 1,046,719 13.2
3 Progressive 926,295 12.4
4 Allstate Corp. 836,903 10.5
5 Plymouth Rock of New Jersey 632,830 7.9
6 State Farm 612,198 7.4
7 Liberty Mutual 557,463 6.7
8 USAA 311,141 4.0
9 Travelers 289,711 3.6
10 Farmers Insurance 222,440 2.4

(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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