A Firm Foundation: How Insurance Supports the Economy

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

The insurance industry in Texas 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 279,553 jobs in Texas in 2016. The Texas insurance industry accounted for about $19.6 billion in compensation in 2016.

Gross State Product

The insurance industry contributed $33.9 billion to the Texas gross state product (GSP) in 2015, accounting for 2.10 percent of the state GSP.

Taxes

Premium taxes paid by insurance companies in Texas totaled $2.2 billion in 2016.

Premiums

Direct premiums written by property/casualty insurance companies in Texas totaled $51.1 billion in 2016. In addition, premiums written by life/health insurance companies totaled $51.2 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 Texas surplus lines market accounted for $5.3 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 2016 these payments in Texas as measured by direct property/casualty incurred losses, were $37.1 billion. Life insurance claims and benefits payouts in Texas totaled $27.8 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. Texas is vulnerable to hurricanes, tornadoes, hailstorms and wildfires.

Three of the most damaging hurricanes to hit the United States landed in Texas: Hurricane Ike in 2008, Hurricane Rita in 2005, and Hurricane Harvey in 2017.

In 2016 and 2017 the state experienced devastating flooding which resulted in billions of dollars in economic losses.

In April of 2016 the costliest hailstorm in Texas history hit the San Antonio area. The Insurance Council of Texas estimated insured losses from that storm at $1.4 billion.

In 2016 Texas ranked first in the nation for wildfires with 9,300 fires. It ranked fifth for number of acres burned with 356,680 acres.

Texas ranked first in the nation in 2016 by estimated insured losses from catastrophes as losses totaled $8.0 billion, according to the Property Claim Services unit of Verisk.

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 Texas By Direct Premiums Written, 2017 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 American International Group (AIG) $1,163,019 4.9%
2 Liberty Mutual 1,157,430 4.9
3 Chubb Ltd. 1,145,497 4.9
4 Travelers Companies Inc. 1,130,110 4.8
5 Texas Mutual Insurance Co. 992,073 4.2
6 CNA Financial Corp. 915,177 3.9
7 Zurich Insurance Group 893,809 3.8
8 Nationwide Mutual Group 587,367 2.5
9 Hartford Financial Services 584,419 2.5
10 AmTrust Financial Services 547,422 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 Texas By Direct Premiums Written, 2017 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm  $1,837,353 20.8%
2 Allstate Corp. 1,126,162 12.7
3 Farmers Insurance Group of Companies (2) 952,431 10.8
4 USAA Insurance Group 850,439 9.6
5 Liberty Mutual 710,478 8.0
6 Travelers Companies Inc. 341,719 3.9
7 Nationwide Mutual Group 256,106 2.9
8 Texas Farm Bureau Insurance Companies  231,440 2.6
9 Progressive  210,837 2.4
10 Chubb Ltd. 182,033 2.1

(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 Texas, 2015 (1)

 

Rank Group/company Premiums and annuity considerations ($000) Market share
1 American International Group (AIG)   $2,825,787 8.7%
2 Jackson National Life Group   1,525,853 4.7
3 MetLife Inc.   1,437,918 4.4
4 New York Life Insurance Group   1,428,271 4.4
5 Lincoln National Corp.   1,400,075 4.3
6 Prudential Financial Inc.   1,230,902 3.8
7 Voya Financial Inc.   1,225,739 3.8
8 AEGON   1,214,884 3.7
9 Manulife Financial Corp.   1,170,454 3.6
10 Massachusetts Mutual Life Insurance Co. 1,023,529 3.2

(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 Texas By Direct Premiums Written, 2017 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm  $3,563,120 16.8%
2 Berkshire Hathaway Inc. 2,637,489 12.5
3 Allstate Corp. 2,362,584 11.2
4 Progressive  2,041,345 9.6
5 Farmers Insurance Group of Companies (2) 1,842,735 8.7
6 USAA Insurance Group 1,712,949 8.1
7 Liberty Mutual 1,195,735 5.6
8 Texas Farm Bureau Insurance Companies 693,004 3.3
9 Consumers County Mutual Insurance Co. 541,825 2.6
10 Nationwide Mutual Group 473,342 2.2

(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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