A Firm Foundation: How Insurance Supports the Economy

Key Facts: The Insurance Industry’s Contribution To The Pennsylvania Economy

The insurance industry in Pennsylvania 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 159,073 jobs in Pennsylvania in 2017. The Pennsylvania insurance industry accounted for about $13.4 billion in compensation in 2017.

Gross State Product

The insurance industry contributed $27.4 billion to the Pennsylvania gross state product (GSP) in 2016, accounting for 3.79 percent of the state GSP.

Taxes

Premium taxes paid by insurance companies in Pennsylvania totaled $808.3 million in 2017.

Premiums

Direct premiums written by property/casualty insurance companies in Pennsylvania totaled $24.3 billion in 2017. Premiums written by life/annuity insurance companies totaled $31.2 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 Pennsylvania surplus lines market accounted for $1.2 billion 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 2017 these payments in Pennsylvania as measured by direct property/casualty incurred losses, were $12.8 billion. Life insurance claims and benefits payouts in Pennsylvania totaled $24.9 billion in 2017.

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 Pennsylvania By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Travelers Companies Inc.  $737,407 6.0%
2 Erie Insurance  670,563 5.4
3 Liberty Mutual  599,454 4.9
4 Chubb  581,112 4.7
5 Zurich  557,440 4.5
6 American International Group (AIG)  448,340 3.6
7 CNA  408,265 3.3
8 Nationwide Mutual Group  349,678 2.8
9 Berkshire Hathaway Inc.  326,921 2.6
10 Selective  287,573 2.3

(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 Pennsylvania By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $607,186 17.7%
2 Erie Insurance 532,254 15.5
3 Allstate Corp. 456,561 13.3
4 Liberty Mutual 285,269 8.3
5 Nationwide 263,805 7.7
6 Travelers 221,389 6.5
7 USAA 142,932 4.2
8 Chubb 105,792 3.1
9 Farmers Insurance Group of Companies 95,564 2.8
10 Donegal 68,402 2.0

(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 Pennsylvania By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Prudential Financial Inc.  $2,518,522 9.5%
2 MetLife Inc.  1,927,451 7.3
3 Lincoln National Corp.  1,307,943 5.0
4 New York Life Insurance Group  1,181,816 4.5
5 American International Group (AIG) 1,173,194 4.4
6 Massachusetts Mutual Life Insurance Co.  1,087,888 4.1
7 Jackson National Life Group  1,049,145 4.0
8 TIAA 1,022,355 3.9
9 Nationwide Mutual Group  852,023 3.2
10 AXA  754,006 2.9

(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 Pennsylvania By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm  $1,766,674 19.4%
2 Erie Insurance  1,205,359 13.2
3 Allstate Corp.  1,031,027 11.3
4 Progressive  992,187 10.9
5 Berkshire Hathaway Inc.  785,490 8.6
6 Nationwide  734,472 8.0
7 Liberty Mutual  428,928 4.7
8 Travelers Companies Inc.  339,612 3.7
9 USAA  319,602 3.5
10 Farmers Insurance  216,193 2.4

(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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