A Firm Foundation: How Insurance Supports the Economy

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

The insurance industry in South 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 12,056 jobs in South Dakota in 2016. The South Dakota insurance industry accounted for about $612 million in compensation in 2016.

Gross State Product

The insurance industry contributed $1.1 billion to the South Dakota gross state product (GSP) in 2015, accounting for 2.3 percent of the state GSP.

Taxes

Premium taxes paid by insurance companies in South Dakota totaled $86.9 million in 2016.

Premiums

Direct premiums written by property/casualty insurance companies in South Dakota totaled $2.4 billion in 2016. In addition, premiums written by life/health insurance companies totaled $1.9 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 South Dakota surplus lines market accounted for $58.3 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 South Dakota as measured by direct property/casualty incurred losses, were $1.2 billion. Life insurance claims and benefits payouts in South Dakota totaled $1.2 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. Floods, thunderstorms and lightning, and winter storms are some of the natural disasters that have occurred or could occur in South 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 South Dakota By Direct Premiums Written, 2017 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Chubb Ltd. $209,053 14.1%
2 Zurich Insurance Group (2) 151,147 10.2
3 CGB Insurance Co. 87,662 5.9
4 American Financial Group Inc. 87,096 5.9
5 QBE 85,796 5.8
6 Farmers Mutual Hail Insurance Company of IA 48,762 3.3
7 ACUITY 43,999 3.0
8 Nationwide Mutual Group 43,000 2.9
9 Travelers Companies Inc. 42,653 2.9
10 American International Group (AIG) 40,303 2.7

(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 South Dakota By Direct Premiums Written, 2017 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm  $49,261 20.1%
2 American Family Insurance Group 27,317 11.1
3 Farmers Insurance Group of Companies (2) 18,398 7.5
4 Farmers Mutual Insurance Co. of NE 16,564 6.7
5 Nationwide Mutual Group 16,113 6.6
6 Farm Bureau Financial Services 11,752 4.8
7 Auto-Owners Insurance Group  10,351 4.2
8 Liberty Mutual 10,286 4.2
9 USAA Insurance Group 10,205 4.2
10 North Star Mutual Insurance Co 9,249 3.8

(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 South Dakota By Direct Premiums Written, 2017 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm  $107,435 19.8%
2 Progressive  75,757 14.0
3 American Family Insurance Group 52,467 9.7
4 Farmers Mutual Insurance Co. of NE 27,061 5.0
5 Nationwide Mutual Group 26,794 4.9
6 Farmers Insurance Group of Companies (2) 25,241 4.7
7 USAA Insurance Group 23,416 4.3
8 Farm Bureau Financial Services 20,892 3.9
9 De Smet Farm Mutual Insurance Co of SD 18,654 3.4
10 Berkshire Hathaway Inc. 17,660 3.3

(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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