A Firm Foundation: How Insurance Supports the Economy

Key Facts: The Insurance Industry’s Contribution To The North Carolina Economy

The insurance industry in North Carolina 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 89,745 jobs in North Carolina in 2018. The North Carolina insurance industry accounted for about $6.8 billion in compensation in 2018.

Gross State Product

The insurance industry contributed $10.5 billion to the North Carolina gross state product (GSP) in 2017, accounting for 1.95 percent of the state GSP.

Taxes

Premium taxes paid by insurance companies in North Carolina totaled $577.6 billion in 2019.

Premiums

Direct premiums written by property/casualty insurance companies in North Carolina totaled $15.7 billion in 2019. Premiums written by life/annuity insurance companies totaled $22.7 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 North Carolina surplus lines market accounted for $770.0 million in gross premiums written in 2018, 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 North Carolina as measured by direct property/casualty incurred losses, were $9.8 billion. Life insurance claims and benefits payouts in North Carolina totaled $15.5 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.

Five of the top 10 most costly hurricanes to hit the United States did damage in North Carolina: Hurricanes Irma and Harvey in 2017, Hurricane Sandy in 2012, Hurricane Michael in 2018 and Hurricane Charley in 2004. 

North Carolina is also heavily affected by floods, wildfires and tornadoes. In 2019 North Carolina ranked third in the nation by number of wildfires with 3,872 fires that burned 14,548 acres.

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 North Carolina By Direct Premiums Written, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Travelers Companies Inc. $472,254 6.1%
2 Liberty Mutual 390,864 5.0
3 Chubb 370,311 4.8
4 Zurich 318,849 4.1
5 Nationwide Mutual Group 271,113 3.5
6 Hartford Financial Services 262,624 3.4
7 American International Group (AIG) 229,240 3.0
8 Berkshire Hathaway Inc. 210,952 2.7
9 The Cincinnati Insurance Cos. 201,288 2.6
10 Erie Insurance Group 197,080 2.5

(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 North Carolina By Direct Premiums Written, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $488,636 16.9%
2 North Carolina Farm Bureau Insurance Group 351,834 12.2
3 Nationwide Mutual Group 271,396 9.4
4 USAA Insurance Group 257,066 8.9
5 Allstate Corp. 187,671 6.5
6 Erie Insurance Group 161,876 5.6
7 Travelers Companies Inc. 102,753 3.6
8 Liberty Mutual 100,365 3.5
9 Auto-Owners Insurance Co. 91,442 3.2
10 American Family Insurance Group 64,125 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/Annuities In North Carolina By Direct Premiums Written, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Lincoln Financial   $992,020 6.2%
2 Prudential Financial Inc.   951,565 6.0
3 Transamerica   777,060 4.9
4 AIG   762,628 4.8
5 Jackson   643,196 4.0
6 New York Life   642,687 4.0
7 MassMutual   613,841 3.8
8 Athene   537,806 3.4
9 Nationwide   517,456 3.2
10 Principal Financial Group Inc.   497,349 3.1

(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 North Carolina By Direct Premiums Written, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $946,301 14.1%
2 Berkshire Hathaway Inc. 780,564 12.9
3 National General Holdings Corp. 645,503 10.3
4 Nationwide 689,089 10.0
5 North Carolina Farm Bureau Insurance 612,305 9.7
6 Allstate Corp. 518,374 8.0
7 USAA 479,938 7.8
8 Progressive 402,262 7.3
9 Erie Insurance 249,828 4.1
10 Liberty Mutual 179,360 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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