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 305,232 jobs in Texas in 2018. The Texas insurance industry accounted for about $22.5 billion in compensation in 2018.

Gross State Product

The insurance industry contributed $38.5 billion to the Texas gross state product (GSP) in 2017, accounting for 2.31 percent of the state GSP.

Taxes

Premium taxes paid by insurance companies in Texas totaled $2.6 billion in 2019.

Premiums

Direct premiums written by property/casualty insurance companies in Texas totaled $54.4 billion in 2019. Premiums written by life/annuity insurance companies totaled $55.1 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 $6.2 billion 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 Texas as measured by direct property/casualty incurred losses, were $39.5 billion. Life insurance claims and benefits payouts in Texas totaled $34.0 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. Texas is vulnerable to floods, hurricanes, tornadoes, hailstorms and wildfires.

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

In 2019 Texas had the second largest number of households at high to extreme risk for wildfires after California, according to 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, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Chubb $1,407,917 5.1%
2 Travelers Companies Inc. 1,341,976 4.8
3 Liberty Mutual 1,269,003 4.6
4 Texas Mutual Insurance Co. 1,069,298 3.8
5 American International Group (AIG) 1,050,241 3.8
6 CNA 1,004,127 3.6
7 Zurich 988,634 3.5
8 Progressive 881,465 3.2
9 Hartford Financial Services 803,662 2.9
10 Berkshire Hathaway Inc. 665,739 2.4

(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, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $1,861,663 18.3%
2 Allstate Corp. 1,348,756 13.3
3 USAA Insurance Group 1,017,411 10.0
4 Farmers Insurance Group 1,005,685 9.9
5 Liberty Mutual 646,261 6.4
6 Travelers Companies Inc. 466,734 4.6
7 Texas Farm Bureau 252,255 2.5
8 Nationwide Mutual Group 243,427 2.4
9 Progressive 230,017 2.3
10 Chubb 211,037 2.1

(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 Texas By Direct Premiums Written, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 AIG   $2,423,419 6.6%
2 Lincoln Financial   1,877,748 5.1
3 New York Life   1,846,181 5.1
4 Prudential Financial Inc.   1,544,078 4.2
5 MassMutual   1,448,141 4.0
6 John Hancock   1,365,805 3.7
7 Pacific Life   1,214,305 3.3
8 Jackson   1,208,916 3.3
9 Allianz   1,202,691 3.3
10 MetLife   1,164,260 3.2

(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 Texas By Direct Premiums Written, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $3,255,667 14.0%
2 Progressive 3,102,637 13.4
3 Berkshire Hathaway Inc. 3,082,238 13.3
4 Allstate Corp. 2,824,829 12.2
5 USAA 1,974,517 8.5
6 Farmers Insurance 1,823,955 7.9
7 Liberty Mutual 1,057,647 4.6
8 Texas Farm Bureau Insurance 767,565 3.3
9 Consumers County Mutual Insurance Co. 530,895 2.3
10 Auto Club Exchange 388,520 1.7

(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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