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 82,812 jobs in North Carolina in 2016. The North Carolina insurance industry accounted for about $5.6 billion in compensation in 2016.

Gross State Product

The insurance industry contributed $8.5 billion to the North Carolina gross state product (GSP) in 2015, accounting for 1.70 percent of the state GSP.

Taxes

Premium taxes paid by insurance companies in North Carolina totaled $503.4 million in 2016.

Premiums

Direct premiums written by property/casualty insurance companies in North Carolina totaled $15.0 billion in 2016. In addition, premiums written by life/health insurance companies totaled $20.5 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 $625.7 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 North Carolina as measured by direct property/casualty incurred losses, were $8.9 billion. Life insurance claims and benefits payouts in North Carolina totaled $20.2 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 hurricane or storm or wildfire. Five of the top 10 most costly hurricanes to hit the United States did damage in North Carolina: Hurricane Hugo in 1989, Hurricanes Charley, Ivan and Frances in 2004 and Hurricane Sandy in 2012. North Carolina is also heavily affected by wildfires and tornadoes. In 2016 North Carolina ranked fourth in the nation for wildfires with 4,007 fires that burned 88,109 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, 2017 (1)

Rank Group/company Direct premiums written ($000) Market share
1 Travelers Companies Inc. $421,873 6.1%
2 Liberty Mutual 371,330 5.4
3 Zurich Insurance Group 303,474 4.4
4 Chubb Ltd. 300,081 4.3
5 Nationwide Mutual Group 279,704 4.0
6 American International Group (AIG) 226,453 3.3
7 Hartford Financial Services 218,246 3.2
8 Cincinnati Financial Corp. 188,798 2.7
9 Erie Insurance Group 178,520 2.6
10 CNA Financial Corp. 177,098 2.6

(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, 2017 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm  $469,096 18.3%
2 North Carolina Farm Bureau Insurance  320,172 12.5
3 Nationwide Mutual Group 285,554 11.1
4 USAA Insurance Group 205,020 8.0
5 Allstate Corp. 172,650 6.7
6 Erie Insurance Group 140,756 5.5
7 Liberty Mutual 96,093 3.7
8 Auto-Owners Insurance Group  73,371 2.9
9 Travelers Companies Inc. 71,191 2.8
10 Farmers Insurance Group of Companies (2) 53,703 2.1

(1) Before reinsurance transactions.
(2) Data for Farmers Insurance Group of Companies and Zurich Financial Group (which owns Farmers' management company) are reported separately by S&P Global Market Intelligence.

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 North Carolina, 2015 (1)

 

Rank Group/company Premiums and annuity considerations ($000) Market share
1 AEGON   $2,043,765 12.7%
2 Prudential Financial Inc.   1,180,325 7.3
3 Lincoln National Corp.   836,505 5.2
4 American International Group (AIG)   770,337 4.8
5 Massachusetts Mutual Life Insurance Co.   756,211 4.7
6 Jackson National Life Group   712,597 4.4
7 TIAA   688,166 4.3
8 MetLife Inc.   614,885 3.8
9 New York Life Insurance Group   546,492 3.4
10 Nationwide Mutual Group   491,355 3.0

(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 North Carolina By Direct Premiums Written, 2017 (1)

Rank Group/company Direct premiums written ($000) Market share
1 State Farm  $915,686 15.3%
2 Nationwide Mutual Group 760,136 12.7
3 Berkshire Hathaway Inc. 670,830 11.2
4 North Carolina Farm Bureau Insurance 566,514 9.5
5 National General Holdings Corp. 558,355 9.3
6 Allstate Corp. 503,501 8.4
7 USAA Insurance Group 449,687 7.5
8 Progressive  338,265 5.7
9 Erie Insurance Group 226,829 3.8
10 Liberty Mutual 175,250 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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