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 10,628 jobs in North Dakota in 2017. The North Dakota insurance industry accounted for about $611 million in compensation in 2017.

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 $105.2 million in gross premiums written in 2017, 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 Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 QBE  $257,217 15.0%
2 Chubb  237,024 13.8
3 Zurich  216,888 12.6
4 CGB Insurance Co. 79,462 4.6
5 Great American Insurance  74,588 4.3
6 Travelers  65,531 3.8
7 Nodak Mutual Group Inc.  50,846 3.0
8 Sompo  45,864 2.7
9 American International Group (AIG)  44,721 2.6
10 Liberty Mutual  35,632 2.1

(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 Dakota By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $34,332 15.7%
2 American Family Insurance Group 26,642 12.2
3 Farmers Union Insurance  20,094 9.2
4 Nodak Mutual Insurance Co. 17,677 8.1
5 Auto-Owners Insurance Co. 14,587 6.7
6 Farmers Insurance Group  13,125 6.0
7 North Star Mutual Insurance Co. 12,251 5.6
8 MetLife Inc. 9,947 4.6
9 USAA Insurance Group 9,000 4.1
10 Liberty Mutual 6,297 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 Private Passenger Auto Insurance In North Dakota By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Progressive $81,706 16.6%
2 State Farm 67,261 13.6
3 American Family Insurance Group 43,627 8.9
4 Nodak Mutual Insurance Co. 42,168 8.6
5 QBE Insurance Group Ltd. 41,843 8.5
6 USAA Insurance Group 24,041 4.9
7 Berkshire Hathaway Inc. 18,030 3.7
8 Grinnell Mutual Reinsurance Co. 16,836 3.4
9 Farmers Insurance Group  16,220 3.3
10 Center Mutual Insurance Co. 15,414 3.1

(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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