A Firm Foundation: How Insurance Supports the Economy

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

The insurance industry in Washington State 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 57,263 jobs in Washington in 2018. The Washington insurance industry accounted for about $4.8 billion in compensation in 2018.

Gross State Product

The insurance industry contributed $7.9 billion to the Washington gross state product (GSP) in 2017, accounting for 1.50 percent of the state GSP.

Taxes

Premium taxes paid by insurance companies in Washington totaled $640.1 million in 2019.

Premiums

Direct premiums written by property/casualty insurance companies in Washington totaled $11.9 billion in 2019. Premiums written by life/annuity insurance companies totaled $14.6 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 Washington surplus lines market accounted for $1.0 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 Washington as measured by direct property/casualty incurred losses, were $7.7 billion. Life insurance claims and benefits payouts in Washington totaled $10.7 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. In 2019 Washington ranked sixth in the nation for the number acres burned by wildfires, with 169,742 acres.

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 Washington By Direct Premiums Written, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Liberty Mutual $633,460 10.7%
2 Chubb 299,927 5.1
3 American International Group (AIG) 298,843 5.0
4 Travelers Companies Inc. 286,715 4.8
5 CNA 214,130 3.6
6 Zurich 207,163 3.5
7 Tokio Marine Group 186,210 3.1
8 Farmers Insurance Group 171,952 2.9
9 Nationwide Mutual Group 149,686 2.5
10 Hartford Financial Services 143,643 2.4

Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.

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Top 10 Writers Of Homeowners Insurance In Washington By Direct Premiums Written, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $328,916 16.8%
2 Liberty Mutual 268,503 13.7
3 Farmers Insurance Group 227,062 11.6
4 Allstate Corp. 189,983 9.7
5 USAA Insurance Group 175,264 8.9
6 American Family Insurance Group 140,996 7.2
7 PEMCO Mutual Insurance Co. 120,610 6.1
8 Travelers Companies Inc. 63,813 3.3
9 Mutual of Enumclaw 57,718 2.9
10 Hartford Financial Services 49,300 2.5

(1) Before reinsurance transactions.

Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.

View Archived Tables

Top 10 Writers Of Life Insurance/Annuities In Washington By Direct Premiums Written, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Prudential Financial Inc.   $1,223,256 11.8%
2 New York Life   619,782 6.0
3 Athene   465,970 4.5
4 Lincoln Financial   424,246 4.1
5 MetLife   390,070 3.8
6 John Hancock   368,249 3.6
7 MassMutual   362,908 3.5
8 AIG   354,421 3.4
9 Nationwide   316,763 3.1
10 Jackson   303,871 2.9

(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.

View Archived Tables

Top 10 Writers Of Private Passenger Auto Insurance In Washington By Direct Premiums Written, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm   $890,934 15.5%
2 Berkshire Hathaway Inc.   666,193 11.6
3 Progressive   661,680 11.5
4 Liberty Mutual   601,551 10.5
5 Allstate Corp.   541,266 9.4
6 USAA   487,469 8.5
7 Farmers Insurance   384,822 6.7
8 PEMCO Mutual Insurance Co. 299,957 5.2
9 American Family Insurance   263,480 4.6
10 The Hartford   127,055 2.2

(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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