A Firm Foundation: How Insurance Supports the Economy

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

The insurance industry in Tennessee 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 64,285 jobs in Tennessee in 2016. The Tennessee insurance industry accounted for about $4.4 billion in compensation in 2016.

Gross State Product

The insurance industry contributed $7.8 billion to the Tennessee gross state product (GSP) in 2015, accounting for 2.48 percent of the state GSP.

Taxes

Premium taxes paid by insurance companies in Tennessee totaled $885.0 million in 2016.

Premiums

Direct premiums written by property/casualty insurance companies in Tennessee totaled $10.9 billion in 2016. In addition, premiums written by life/health insurance companies totaled $12.8 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 Tennessee surplus lines market accounted for $588.3 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 Tennessee as measured by direct property/casualty incurred losses, were $6.9 billion. Life insurance claims and benefits payouts in Tennessee totaled $8.7 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, storm or wildfire. Tennessee is vulnerable to wildfires, severe storms and flooding. In 2016 Tennessee ranked ninth in the nation for the number of wildfires, with 2,165 fires.

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 Tennessee By Direct Premiums Written, 2017 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Travelers Companies Inc. $325,294 6.5%
2 Liberty Mutual 256,472 5.1
3 Chubb Ltd. 248,782 5.0
4 American International Group (AIG) 180,931 3.6
5 Zurich Insurance Group (2) 175,964 3.5
6 CNA Financial Corp. 167,299 3.4
7 Cincinnati Financial Corp. 145,295 2.9
8 Nationwide Mutual Group 128,595 2.6
9 Auto-Owners Insurance Group  126,483 2.5
10 Hartford Financial Services 119,456 2.4

(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 Tennessee By Direct Premiums Written, 2017 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm  $482,424 24.1%
2 Tennessee Farmers Insurance Companies  390,201 19.5
3 Liberty Mutual 154,164 7.7
4 Allstate Corp. 148,108 7.4
5 USAA Insurance Group 126,822 6.3
6 Erie Insurance Group 82,395 4.1
7 Nationwide Mutual Group 82,010 4.1
8 Farmers Insurance Group of Companies (2) 81,053 4.0
9 Travelers Companies Inc. 68,873 3.4
10 Auto-Owners Insurance Group  38,510 1.9

(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 Life Insurance And Annuity Considerations In Tennessee, 2015 (1)

Rank Group/company Premiums and annuity considerations ($000) Market share
1 Principal Financial Group Inc.   $1,402,831 13.7%
2 Jackson National Life Group   530,148 5.2
3 Prudential Financial Inc.   497,459 4.8
4 American International Group (AIG)   419,103 4.1
5 Lincoln National Corp.   417,119 4.1
6 Manulife Financial Corp.   403,613 3.9
7 Global Atlantic Financial Group 386,558 3.8
8 MetLife Inc.   384,900 3.8
9 Massachusetts Mutual Life Insurance Co. 368,867 3.6
10 AEGON   367,740 3.6

(1) Includes life insurance, annuity considerations, deposit-type contract funds and other considerations; excludes accident and health insurance from life/health insurers. Before reinsurance transactions.

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 Tennessee By Direct Premiums Written, 2017 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm  $948,604 23.2%
2 Tennessee Farmers Insurance Companies 654,613 16.0
3 Berkshire Hathaway Inc. 348,059 8.5
4 Progressive  311,706 7.6
5 Allstate Corp. 254,285 6.2
6 USAA Insurance Group 221,585 5.4
7 Liberty Mutual 211,928 5.2
8 Nationwide Mutual Group 171,166 4.2
9 Erie Insurance Group 114,508 2.8
10 Travelers Companies Inc. 84,329 2.1

(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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