A Firm Foundation: How Insurance Supports the Economy

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

The insurance industry in North Dakota 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 10,573 jobs in North Dakota in 2016. The North Dakota insurance industry accounted for about $592 million in compensation in 2016.

Gross State Product

The insurance industry contributed $1.2 billion to the North Dakota gross state product (GSP) in 2015, accounting for 2.1 percent of the state GSP.

Taxes

Premium taxes paid by insurance companies in North Dakota totaled $65.1 million in 2016.

Premiums

Direct premiums written by property/casualty insurance companies in North Dakota totaled $2.4 billion in 2016. In addition, premiums written by life/health insurance companies totaled $1.6 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 Dakota surplus lines market accounted for $94.9 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 Dakota as measured by direct property/casualty incurred losses, were $1.6 billion. Life insurance claims and benefits payouts in North Dakota totaled $967 million 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. Severe winter storms, floods and wildfires are some of the natural disasters that have occurred or could occur in North Dakota.

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 Dakota By Direct Prems Written, 2017 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Chubb Ltd. $260,005 15.2%
2 QBE 255,779 15.0
3 Zurich Insurance Group (2) 215,115 12.6
4 American Financial Group Inc. 78,858 4.6
5 CGB Insurance Co. 78,773 4.6
6 Travelers Companies Inc. 53,849 3.2
7 Nodak Mutual Group Inc. 51,098 3.0
8 American International Group (AIG) 42,909 2.5
9 Sompo 41,575 2.4
10 Tokio Marine Group 35,363 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 Homeowners Insurance In North Dakota By Direct Premiums Written, 2017 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm  $34,130 16.3%
2 American Family Insurance Group 25,499 12.2
3 Farmers Union Insurance 19,470 9.3
4 Nodak Mutual Group Inc.  17,165 8.2
5 Auto-Owners Insurance Group  13,495 6.4
6 Farmers Insurance Group of Companies (2) 12,574 6.0
7 North Star Mutual Insurance Co 11,899 5.7
8 MetLife Inc. 9,549 4.6
9 USAA Insurance Group 8,198 3.9
10 Nationwide Mutual Group 6,211 3.0

(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 Private Passenger Auto Insurance In North Dakota By Direct Premiums Written, 2017 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Progressive  $72,179 15.3%
2 State Farm  68,853 14.6
3 American Family Insurance Group 43,126 9.2
4 Nodak Mutual Group Inc. 40,579 8.6
5 QBE 40,186 8.5
6 USAA Insurance Group 21,437 4.6
7 Berkshire Hathaway Inc. 16,554 3.5
8 Farmers Insurance Group of Companies (2) 16,221 3.4
9 Grinnell Mutual 15,419 3.3
10 Center Mutual Insurance Co. 14,244 3.0

(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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State By State Comparison Tables

Directories

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