A Firm Foundation: How Insurance Supports the Economy

Key Facts: The Insurance Industry’s Contribution To The West Virginia Economy

The insurance industry in West Virginia 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 11,719 jobs in West Virginia in 2018. The West Virginia insurance industry accounted for about $653.1 million in compensation in 2018.

Gross State Product

The insurance industry contributed $1.4 billion to the West Virginia gross state product (GSP) in 2017, accounting for 1.91 percent of the state GSP.

Taxes

Premium taxes paid by insurance companies in West Virginia totaled $129.1 million in 2019.

Premiums

Direct premiums written by property/casualty insurance companies in West Virginia totaled $3.0 billion in 2019. Premiums written by life/annuity insurance companies totaled $3.0 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 West Virginia surplus lines market accounted for $134.7 million 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 West Virginia as measured by direct property/casualty incurred losses, were $1.7 billion. Life insurance claims and benefits payouts in West Virginia totaled $2.4 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 2015 and 2016 West Virginia experienced devastating rainfall-induced flooding.

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 West Virginia By Direct Premiums Written, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Encova Insurance $141,336 10.3%
2 American International Group (AIG) 128,330 9.4
3 Travelers Companies Inc. 127,919 9.3
4 Erie Insurance Group 87,973 6.4
5 Liberty Mutual 56,993 4.2
6 Nationwide Mutual Group 52,341 3.8
7 Zurich 47,563 3.5
8 Westfield Group 46,241 3.4
9 CNA 42,161 3.1
10 Chubb 38,267 2.8

(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 West Virginia By Direct Premiums Written, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $117,365 25.4%
2 Erie Insurance Group 87,507 18.9
3 Nationwide Mutual Group 45,085 9.7
4 Allstate Corp. 35,539 7.7
5 Liberty Mutual 26,215 5.7
6 USAA Insurance Group 24,408 5.3
7 Westfield Group 17,933 3.9
8 Farmers and Mechanics 14,554 3.1
9 State Auto 10,036 2.2
10 Municipal Mutual Insurance Co. of West Virginia 9,892 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 West Virginia By Direct Premiums Written, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 MassMutual   $136,416 6.4%
2 TIAA   117,487 5.5
3 Prudential Financial Inc.   110,352 5.2
4 AIG   97,789 4.6
5 Global Atlantic   95,986 4.5
6 Jackson   86,426 4.0
7 Lincoln Financial   76,998 3.6
8 Northwestern Mutual   76,398 3.6
9 Pacific Life   75,397 3.5
10 New York Life   71,938 3.4

(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 West Virginia By Direct Premiums Written, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm   $317,809 24.7
2 Erie Insurance   198,301 15.4
3 Berkshire Hathaway Inc.   145,744 11.3
4 Nationwide   133,236 10.4
5 Allstate Corp.   104,722 8.1
6 Progressive   102,556 8.0
7 Liberty Mutual   59,783 4.7
8 USAA   53,219 4.1
9 Westfield Insurance   31,501 2.5
10 The Hartford   31,495 2.5

(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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