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 12,184 jobs in South Dakota in 2018. The South Dakota insurance industry accounted for about $666.4 million in compensation in 2018.

Gross State Product

The insurance industry contributed $1.3 billion to the South Dakota gross state product (GSP) in 2017, accounting for 2.69 percent of the state GSP.

Taxes

Premium taxes paid by insurance companies in South Dakota totaled $90.9 million in 2019.

Premiums

Direct premiums written by property/casualty insurance companies in South Dakota totaled $2.4 billion in 2019. Premiums written by life/annuity insurance companies totaled $2.5 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 $75.2 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 South Dakota as measured by direct property/casualty incurred losses, were $2.2 billion. Life insurance claims and benefits payouts in South Dakota totaled $1.5 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. 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, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Chubb $231,363 15.1%
2 Zurich 119,755 7.8
3 QBE Insurance Group Ltd. 83,475 5.4
4 CGB Insurance Co. 82,222 5.4
5 Great American Insurance 74,344 4.9
6 American International Group (AIG) 59,156 3.9
7 ACUITY 50,430 3.3
8 Travelers Companies Inc. 47,997 3.1
9 Farmers Mutual Hail 46,575 3.0
10 Nationwide Mutual Group 39,965 2.6

(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 South Dakota By Direct Premiums Written, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $54,088 19.4%
2 American Family Insurance Group 32,262 11.6
3 Farmers Insurance Group 19,574 7.0
4 Farmers Mutual Insurance Co. of Nebraska 17,554 6.3
5 Auto-Owners Insurance Co. 16,213 5.8
6 Nationwide Mutual Group 15,685 5.6
7 Liberty Mutual 11,895 4.3
8 USAA Insurance Group 11,806 4.2
9 North Star Mutual Insurance Co. 11,302 4.1
10 Farm Bureau Financial Services 10,290 3.7

(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 South Dakota By Direct Premiums Written, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Principal Financial Group Inc.   $293,819 14.3%
2 Prudential Financial Inc.   201,750 9.8
3 Lincoln Financial   167,213 8.1
4 New York Life   142,607 6.9
5 Lombard International   91,352 4.4
6 Investors Pfd Life Insurance Co. 71,300 3.5
7 MetLife   65,713 3.2
8 Jackson   62,973 3.1
9 Northwestern Mutual   61,468 3.0
10 Pacific Life   58,146 2.8

(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 South Dakota By Direct Premiums Written, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm   $104,891 17.6
2 Progressive   96,448 16.2
3 American Family Insurance   56,541 9.5
4 Farmers Mutual Inurance Co. of Nebraska 31,823 5.3
5 USAA   27,057 4.5
6 Farmers Insurance   26,916 4.5
7 Nationwide   23,499 3.9
8 Berkshire Hathaway Inc.   22,588 3.8
9 De Smet Farm Mutual Insurance Co. of South Dakota 19,171 3.2
10 Auto-Owners Insurance   17,872 3.0

(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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