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 12,203 jobs in South Dakota in 2017. The South Dakota insurance industry accounted for about $642.8 million in compensation in 2017.

Gross State Product

The insurance industry contributed $1.3 billion to the South Dakota gross state product (GSP) in 2016, accounting for 2.66 percent of the state GSP.

Taxes

Premium taxes paid by insurance companies in South Dakota totaled $66.5 million in 2017.

Premiums

Direct premiums written by property/casualty insurance companies in South Dakota totaled $2.4 billion in 2017. Premiums written by life/annuity insurance companies totaled $2.4 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 $59.8 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 2017 these payments in South Carolina as measured by direct property/casualty incurred losses, were $5.7 billion. Life insurance claims and benefits payouts in South Carolina totaled $6.5 billion in 2017.

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, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Chubb $211,740 14.5%
2 Zurich 121,466 8.3
3 CGB Insurance Co. 83,517 5.7
4 QBE 79,946 5.5
5 Great American Insurance 73,077 5.0
6 American International Group (AIG) 58,706 4.0
7 ACUITY A Mutual Insurance Co. 48,447 3.3
8 Farmers Mutual Hail 46,300 3.2
9 Travelers 44,493 3.0
10 Nationwide 41,723 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 Homeowners Insurance In South Dakota By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $52,018 19.9%
2 American Family Insurance Group 29,829 11.4
3 Farmers Insurance Group  18,772 7.2
4 Farmers Mutual Insurance Company of NE 16,576 6.3
5 Nationwide Mutual Group 15,719 6.0
6 Auto-Owners Insurance Co. 13,023 5.0
7 Liberty Mutual 11,609 4.4
8 USAA Insurance Group 10,764 4.1
9 Farm Bureau Financial Services 10,424 4.0
10 North Star Mutual Insurance Co 10,169 3.9

(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 Life Insurance/Annuities In South Dakota By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Principal Financial Group Inc.  $232,096 12.9%
2 Prudential Financial Inc.  174,006 9.6
3 New York Life Insurance Group  140,969 7.8
4 Lincoln National Corp.  86,611 4.8
5 MetLife Inc.  72,332 4.0
6 John Hancock Life Insurance Co. 67,751 3.8
7 Northwestern Mutual Life Insurance Co.  59,660 3.3
8 Pacific Life 58,942 3.3
9 Sammons Enterprises Inc.  49,850 2.8
10 Lombard Insurance Co. 47,774 2.7

(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.

Top 10 Writers Of Private Passenger Auto Insurance In South Dakota By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $106,562 18.7%
2 Progressive 84,830 14.9
3 American Family Insurance Group 54,925 9.6
4 Farmers Mutual Insurance Company of NE 29,461 5.2
5 Farmers Insurance Group  26,286 4.6
6 USAA Insurance Group 25,600 4.5
7 Nationwide Mutual Group 24,103 4.2
8 Berkshire Hathaway Inc. 19,805 3.5
9 De Smet Farm Mutual Insurance Company of SD 18,891 3.3
10 Liberty Mutual 18,135 3.2

(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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