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 105,307 jobs in New Jersey in 2017. The New Jersey insurance industry accounted for about $12.2 billion in compensation in 2017.

Gross State Product

The insurance industry contributed $18.2 billion to the New Jersey gross state product (GSP) in 2016, accounting for 3.12 percent of the state GSP.

Taxes

Premium taxes paid by insurance companies in New Jersey totaled $579.6 million in 2017.

Premiums

Direct premiums written by property/casualty insurance companies in New Jersey totaled $21.2 billion in 2017. Premiums written by life/annuity insurance companies totaled $27.4 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 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 2017 these payments in New Jersey as measured by direct property/casualty incurred losses, were $11.7 billion. Life insurance claims and benefits payouts in New Jersey totaled $20.6 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. New Jersey suffered damage in two of the top ten costliest hurricanes: Hurricane Ivan in 2004 and Hurricane Sandy in 2012. 

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, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Travelers Companies Inc.  $685,759 10.7%
2 Liberty Mutual  636,140 5.7
3 Chubb  612,801 5.5
4 NJM Insurance  552,599 4.9
5 The Hartford  540,499 4.8
6 Berkshire Hathaway Inc.  525,224 4.7
7 Zurich  490,744 4.4
8 Selective  452,391 4.0
9 American International Group (AIG)  397,888 3.6
10 CNA  333,769 3.0

(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, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $295,259 10.7%
2 NJM Insurance 277,251 10.0
3 Allstate Corp. 254,081 9.2
4 Liberty Mutual 243,324 8.8
5 Chubb 183,071 6.6
6 Travelers 140,220 5.1
7 USAA 119,435 4.3
8 Plymouth Rock of New Jersey 116,728 4.2
9 American Family Insurance 116,204 4.2
10 National General Holdings Corp. 90,357 3.3

(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 New Jersey By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Prudential Financial Inc. $4,101,710 18.1%
2 Massachusetts Mutual Life Insurance Co. 1,282,645 5.7
3 Lincoln National Corp. 1,208,290 5.3
4 AXA 1,167,115 5.1
5 MetLife Inc. 983,013 4.3
6 TIAA 966,740 4.3
7 New York Life Insurance Group 948,671 4.2
8 Jackson National Life Group 928,107 4.1
9 American International Group (AIG) 905,581 4.0
10 Voya Financial Inc. 582,383 2.6

(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 New Jersey By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Berkshire Hathaway Inc.  $1,740,325 21.8%
2 NJM Insurance  1,046,719 13.1
3 Progressive  926,295 11.6
4 Allstate Corp.  836,903 10.5
5 Plymouth Rock of New Jersey  620,745 7.8
6 State Farm  612,198 7.7
7 Liberty Mutual  557,463 7.0
8 USAA  311,141 3.9
9 Travelers Companies Inc.  289,711 3.6
10 Farmers Insurance  222,440 2.8

(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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