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 10,513 jobs in North Dakota in 2018. The North Dakota insurance industry accounted for about $630.2 million in compensation in 2018.

Gross State Product

The insurance industry contributed $1.1 billion to the North Dakota gross state product (GSP) in 2017, accounting for 2.17 percent of the state GSP.

Taxes

Premium taxes paid by insurance companies in North Dakota totaled $68.6 million in 2019.

Premiums

Direct premiums written by property/casualty insurance companies in North Dakota totaled $2.5 billion in 2019. Premiums written by life/annuity insurance companies totaled $1.7 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 Dakota surplus lines market accounted for $119.2 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 Dakota as measured by direct property/casualty incurred losses, were $1.9 billion. Life insurance claims and benefits payouts in North Dakota totaled $1.3 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. 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, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 QBE Insurance Group Ltd. $245,590 14.2%
2 Chubb 234,064 13.5
3 Zurich 206,752 12.0
4 CGB Insurance Co. 80,071 4.6
5 Great American Insurance 73,264 4.2
6 Travelers Companies Inc. 68,242 3.9
7 Nodak Mutual Insurance Co. 47,545 2.8
8 American International Group (AIG) 46,471 2.7
9 Sompo 44,224 2.6
10 Liberty Mutual 35,760 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, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $34,773 15.1%
2 American Family Insurance Group 28,257 12.3
3 Farmers Union Insurance 21,000 9.1
4 Nodak Mutual Insurance Co. 18,978 8.3
5 Auto-Owners Insurance Co. 16,003 7.0
6 Farmers Insurance Group 13,647 5.9
7 North Star Mutual Insurance Co. 12,628 5.5
8 USAA Insurance Group 10,412 4.5
9 MetLife Inc. 10,299 4.5
10 Liberty Mutual 7,786 3.4

(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 Dakota By Direct Premiums Written, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 John Hancock   $69,386 5.1%
2 Nationwide   59,136 4.4
3 Prudential Financial Inc.   57,928 4.3
4 Lincoln Financial   54,902 4.1
5 Brighthouse Financial   53,096 3.9
6 Northwestern Mutual   49,989 3.7
7 Securian   48,036 3.6
8 MassMutual   47,804 3.5
9 New York Life   47,467 3.5
10 Pacific Life   47,428 3.5

(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 Dakota By Direct Premiums Written, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Progressive $81,706 18.4
2 State Farm 67,261 12.6
3 Nodak Mutual Group Inc. 42,168 8.7
4 American Family Insurance 43,627 8.7
5 National General Holdings Corp. 42,188 8.6
6 USAA 24,041 4.9
7 Berkshire Hathaway Inc. 18,030 3.9
8 Grinnell Mutual 16,836 3.3
9 Farmers Insurance 16,220 3.3
10 Center Mutual Insurance Co. 15,414 3.3

(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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