To the Reader 1
Chapter 1: Introduction 2
Insurance Industry at a Glance 2
Chapter 2: Contribution to the National Economy 4
Employment 4
Insurance Payrolls 5
Premiums 5
Surplus Lines 6
Major Players Rankings by Line 7
Taxes 11
Comparison with Other Industries 12
Charitable Contributions 12
Contribution to GDP 13
Chapter 3: Insurers as Investors 14
Introduction 14
Property/Casualty Industry Investments 14
Life/Health Industry Investments 17
Ownership of Municipal Securities 18
Chapter 4: Defraying the Economic Costs of Disasters 19
Introduction 19
Reinsurance 21
Hurricanes 22
Tornadoes 24
Earthquakes 25
Wildfires 26
Terrorism 27
Chapter 5: Contribution to Selected Industries 29
Introduction 29
Auto Repair Industry 29
Construction Industry 30
Healthcare Industry 30
Chapter 6: Role of Credit/Mortgage Insurance 33
Credit Insurance for Short-term Trade Receivables 33
Private Mortgage Insurance 33
Credit Life/Health 34
Chapter 7: Income Replacement 36
Life Insurance Payouts 36
Disability Insurance Premiums 36
Workers Compensation Indemnity Payouts 37
Chapter 8: Contribution to State Economies 38
Employment 38
Premiums 40
Surplus Lines 50
Gross State Product 52
State Taxes 54
Insurance Companies by State 55
Catastrophes by State 57
Residual Markets 62
Captives by State 64
Incurred Losses by State 65
Insured Cars by State 73
Insured Homes by State 75
Businesses by State 76
Appendices 78
I.I.I. Resources 78
Insurance and Related Service Organizations 80
I.I.I. Member Companies 94
I.I.I. Staff 97
I.I.I. Board of Directors 98
A Firm Foundation updates at www.iii.org/firm-foundation/ 1
To The Reader
Insurance affects everything and everything affects insurance. It is generally understood that
insurance allows those who participate in the economy to produce goods and services without
the paralyzing fear that some adverse incident could leave them destitute or unable to function.
However, few people are aware of the extraordinary impact the industry has on state, local and
national economies.
To explain the ways that both property/casualty and life insurance contribute to our economy
far beyond their core function of helping to manage risk, the Insurance Information Institute
has produced a website, A Firm Foundation: How Insurance Supports the Economy
(www.iii.org/firm-foundation/), which is updated frequently. This PDF version includes the
entire contents of this unique resource.
The insurance industry is a major U.S. employer, providing some 2.3 million jobs that
encompass a wide variety of careers, from human resource administrators to public relations
managers to financial analysts.
Insurance companies also help support the economy through their investments. As part of the
financial services industry, insurers act as financial intermediaries, investing the funds they
collect for providing insurance protection. The insurance industry (property/casualty and
life/health) is a key player in the capital markets, with $7.0 trillion in financial assets in 2012,
including $1.4 trillion held by property/casualty insurers and $5.6 trillion held by life insurers,
according to data from the Federal Reserve Flow of Funds.
Insurers contributed $413 billion to the nation’s gross domestic product in 2012. Their taxes
include special levies on insurance premiums. Insurance companies, including life/health and
property/casualty companies, paid $16.7 billion in premium taxes to the 50 states in 2012. On a
per capita basis, this works out to $53 for every person living in the United States.
This publication shows the myriad ways in which insurance supports the economy. Each chart
illustrates one or more elements. Together they tell a tale that is rarely told—that insurance
helps provide the firm foundation for a functioning economy.
Robert P. Hartwig,
President
Insurance Information Institute
A Firm Foundation updates at www.iii.org/firm-foundation/ 2
Insurance Industry at a Glance
The U.S. insurance industry’s net premiums written totaled $1.1 trillion in 2012, with
premiums recorded by life/health (L/H) insurers accounting for 58 percent and
premiums by property/casualty (P/C) insurers accounting for 42 percent, according to
SNL Financial LC.
P/C insurance consists primarily of auto, home and commercial insurance. Net
premiums written for the sector totaled $456 billion in 2012.
The L/H insurance sector consists primarily of annuities and life insurance. Net
premiums written for the sector totaled $643 billion in 2012.
Health insurance is generally considered separate. The sector includes private health
insurance companies as well as government programs. P/C and L/H insurers also write
some health insurance.
There were 6,115 insurance companies in 2012, including P/C (2,660 companies),
life/annuities (913), health (806), fraternal (88), title (58), risk retention groups (272)
and other companies (1,318).
Insurance carriers and related activities accounted for $398 billion, or 2.6 percent of
U.S. gross domestic product in 2011.
The U.S. insurance industry employed 2.3 million people in 2012. Of those, 1.4 million
worked for insurance companies, including life, health and medical insurers (807,900
workers), P/C insurers (591,300 workers) and reinsurers (25,600 workers). The
remaining 912,300 people worked for insurance agencies, brokers and other insurance-
related enterprises.
Total P/C cash and invested assets were $1.4 trillion in 2012. L/H cash and invested
assets totaled $3.4 trillion in 2012. The majority of these assets were in bonds (65
percent of P/C assets and 75 percent of L/H assets).
P/C and L/H insurance companies paid $16.7 billion in premium taxes in 2012, or $53
for every person living in the United States.
P/C insurers paid out $35.0 billion in property losses related to catastrophes in 2012,
compared with $33.6 billion in 2011, according to ISO. There were 26 catastrophes in
2012, compared with 30 in 2011.
A Firm Foundation updates at www.iii.org/firm-foundation/ 4
Chapter 2: Contribution to the National Economy
Employment
CAREERS AND EMPLOYMENT
The insurance industry is a major U.S. employer, providing some 2.3 million jobs that
encompass a wide variety of careers, from human resource administrators to public relations
managers to financial analysts. Some jobs, such as claims adjusters, actuaries and insurance
underwriters, are unique to the insurance industry. For information about the many career
opportunities in the insurance industry consult the Bureau of Labor Statistics’ Career Guide to
Industries, posted on the Web at http://www.bls.gov/oco/cg/cgs028.htm
EMPLOYMENT IN INSURANCE, 2003-2012
(Annual averages, 000)
Insurance carriers
Insurance agencies, brokerages and related
services
Direct insurers (1)
Year
Life, health
and
medical
Property
/
casualty
Reinsurer
s
Total
Insurance
agencies
and brokers
Other
insurance-
related
activities (2)
Total
Total
industry
Insurance
and employee
benefit funds (3)
2003
789.0
710.0
31.0
1,530.0
628.5
208.9
837.4
2,367.4
47.1
2004
764.4
678.5
29.8
1,472.7
643.3
216.8
860.1
2,332.8
47.0
2005
761.9
639.0
28.8
1,429.7
650.1
223.5
873.6
2,303.3
46.4
2006
787.4
635.4
28.0
1,450.9
659.9
230.9
890.8
2,341.7
47.8
2007
784.0
633.2
27.0
1,444.1
675.3
234.5
909.8
2,353.9
48.6
2008
797.6
632.7
27.9
1,458.1
669.1
239.4
908.5
2,366.7
49.0
2009
799.7
619.1
27.5
1,446.3
650.8
236.0
886.7
2,333.0
49.1
2010
801.0
600.9
26.8
1,428.6
639.9
235.3
875.2
2,303.8
48.7
2011
785.9
598.3
25.6
1,409.7
646.8
243.4
890.2
2,299.9
46.9
2012
807.9
591.3
25.6
1,424.8
658.4
253.8
912.3
2,337.1
47.4
(1) Establishments primarily engaged in initially underwriting insurance policies.
(2) Includes claims adjusters, third-party administrators of insurance funds and other service personnel such as advisory and
insurance ratemaking services.
(3) Includes employees of legal entities organized to provide insurance and employee benefits exclusively for the sponsor, or its
employees or members. These employees are not included in the total for the insurance industry.
Source: U.S. Department of Labor, Bureau of Labor Statistics.
A Firm Foundation updates at www.iii.org/firm-foundation/ 5
Insurance Payrolls
INSURANCE CARRIERS AND RELATED ACTIVITIES COMPENSATION, 2008-2012
Year
Annual payroll ($ billions)
2008
$192.6
2009
185.9
2010
191.6
2011
203.9
2012
214.1
Source: U.S. Department of Commerce, Bureau of Economic Analysis.
Premiums
NET PREMIUMS WRITTEN, PROPERTY/CASUALTY AND LIFE/HEALTH
There are three main insurance sectors. Property/casualty (P/C) consists mainly of auto, home
and commercial insurance. Life/health (L/H) consists mainly of life insurance and annuity
products. P/C and L/H net premiums written rose by 3.3 percent and 3.7 percent, respectively,
in 2012. The third sector, health insurance, is offered by private health insurance companies,
and to a lesser degree by L/H and P/C insurers.
U.S. PROPERTY/CASUALTY AND LIFE/HEALTH INSURANCE PREMIUMS, 2012 (1)
(1) Property/casualty: net premiums written, excludes state funds; life/health: premiums, annuity considerations (fees for annuity
contracts) and deposit-type funds.
Source: SNL Financial LC.
A Firm Foundation updates at www.iii.org/firm-foundation/ 6
PROPERTY/CASUALTY AND LIFE/HEALTH INSURANCE NET PREMIUMS WRITTEN, 2003-2012
($000)
Year
Property/
casualty (1)
Life/
health (2)
Total
2003
$407,226,782
$477,752,340
$884,979,122
2004
425,465,344
507,250,884
932,716,228
2005
422,448,746
520,220,499
942,669,245
2006
447,803,993
575,030,988
1,022,834,981
2007
446,180,660
609,348,564
1,055,529,224
2008
440,320,183
622,120,472
1,062,440,655
2009
423,528,077
506,664,912
930,192,989
2010
425,878,773
577,614,191
1,003,492,964
2011
441,562,154
619,522,960
1,061,085,114
2012
456,116,738
642,602,989
1,098,719,727
Percent change, 2003-2012
12.0%
34.5%
24.2%
(1) Net premiums written, excludes state funds.
(2) Premiums, annuity considerations (fees for annuity contracts) and deposit-type funds for life/health insurance companies.
Source: SNL Financial LC.
Surplus Lines
The surplus lines market, a group of highly specialized insurers exists to provide coverage that is
not available through licensed insurers in the standard insurance market. Each state has surplus
lines regulations and each surplus lines company is overseen for solvency by its home state. The
role of surplus lines in the commercial market has increased over the years. In 2011, surplus
lines accounted for 14.6 percent of the U.S. commercial lines market, up from 9.5 percent in
2001 and 5.2 percent in 1991, according to a September, 2012 A.M. Best report.
GROSS SURPLUS LINES PREMIUMS WRITTEN, 2008-2012
($ billions)
Source: 2010 to 2012 premiums from Business Insurance, September 23, 2013; earlier premiums from other issues.
A Firm Foundation updates at www.iii.org/firm-foundation/ 7
TOP TEN U.S.-BASED SURPLUS LINES INSURANCE COMPANIES BY NONADMITTED DIRECT
PREMIUMS WRITTEN, 2012
Rank
Company/Parent
Nonadmitted direct premiums
1
Lexington Insurance Co. (American International Group lnc.)
$4,285,026,291
2
Scottsdale Insurance Co. (Nationwide Mutual Insurance Co.)
1,253,440,156
3
Steadfast Insurance Co. (Zurich Insurance Co. Ltd.)
1,058,976,202
4
Chartis Specialty Insurance Co. (American International Group lnc.)
809,392,168
5
Columbia Casualty Co. (CNA Financial Corp.)
782,097,439
6
Landmark American Insurance Co. (Alleghany Corp.)
589,564,231
7
Nautilus Insurance Co. (W.R. Berkley Corp.)
489,902,728
8
Westchester Surplus Lines Insurance Co. (Ace Ltd.)
454,599,457
9
Arch Specialty Insurance Co. (Arch Capital Group Ltd.)
448,902,049 (1)
10
Illinois Union Insurance Co. (Ace Ltd.)
448,009,429 (1)
(1) Company statement filed with the National Association of Insurance Commissioners.
Source: Business Insurance, September 23, 2012.
Major Players -- Rankings by Line
As employers, taxpayers and investors, insurance companies play a major role in the U.S.
economy, contributing $404.6 billion to the gross domestic product in 2010. The charts below
identify some of the leading players in this vital sector.
TOP TEN WRITERS OF PROPERTY/CASUALTY INSURANCE BY DIRECT PREMIUMS WRITTEN,
2012
($000)
Rank
Group
Direct premiums written (1)
Market share (2)
1
State Farm Mutual Automobile Insurance
$53,654,237
10.3%
2
Liberty Mutual
28,297,511
5.4
3
Allstate Corp.
26,652,040
5.1
4
American International Group
23,596,418
4.5
5
Travelers Companies Inc.
22,695,958
4.3
6
Berkshire Hathaway Inc.
20,236,495
3.9
7
Farmers Insurance Group of Companies (3)
18,311,402
3.5
8
Nationwide Mutual Group
17,042,933
3.3
9
Progressive Corp.
16,559,746
3.2
10
USAA Insurance Group
13,286,274
2.5
(1) Before reinsurance transactions, includes state funds.
(2) Based on U.S. total, includes territories.
(3) Data for Farmers Insurance Group of Companies and Zurich Financial Group (which owns Farmers' management company) are
reported separately by SNL Financial.
Source: SNL Financial LC.
A Firm Foundation updates at www.iii.org/firm-foundation/ 8
TOP TEN WRITERS OF LIFE INSURANCE/ANNUITIES BY DIRECT PREMIUMS WRITTEN, 2012
($000)
Rank
Group
Direct premiums written (1)
Market share
1
MetLife Inc.
$102,321,495
16.6%
2
Prudential Financial Inc.
85,852,775
13.9
3
Jackson National Life Group
24,206,886
3.9
4
New York Life Insurance Group
24,010,473
3.9
5
ING Groep N.V.
23,513,207
3.8
6
Lincoln National Corp.
21,004,314
3.4
7
Manulife Financial Corp.
20,965,672
3.4
8
Massachusetts Mutual Life Insurance Co.
20,751,732
3.4
9
AEGON NV
19,695,559
3.2
10
Principal Financial Group Inc.
18,336,972
3.0
(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.
(2) Based on U.S. total, includes territories.
Source: SNL Financial LC.
TOP TEN WRITERS OF HOMEOWNERS INSURANCE BY DIRECT PREMIUMS WRITTEN, 2012
($000)
Rank
Group
Direct premiums written (1)
Market share
1
State Farm Mutual Automobile Insurance
$16,299,379
20.7%
2
Allstate Corp.
7,166,931
9.1
3
Farmers Insurance Group of Companies (3)
4,823,694
6.1
4
Liberty Mutual
4,628,086
5.9
5
USAA Insurance Group
3,856,394
4.9
6
Travelers Companies Inc.
3,450,478
4.4
7
Nationwide Mutual Group
2,945,058
3.7
8
Chubb Corp.
1,877,340
2.4
9
Citizens Property Insurance Corp.
1,637,389
2.1
10
American Family Mutual
1,584,681
2.0
(1) Before reinsurance transactions, includes state funds.
(2) Based on U.S. total, includes territories.
(3) Data for Farmers Insurance Group of Companies and Zurich Financial Group (which owns Farmers' management company) are
reported separately by SNL Financial LC.
Source: SNL Financial LC.
TOP TEN WRITERS OF PRIVATE PASSENGER AUTO INSURANCE BY DIRECT PREMIUMS
WRITTEN, 2012
($000)
Rank
Group
Direct premiums written (1)
Market share
1
State Farm Mutual Automobile Insurance
$32,101,907
18.4%
2
Allstate Corp.
17,478,055
10.0
3
Berkshire Hathaway Inc.
16,748,872
9.6
A Firm Foundation updates at www.iii.org/firm-foundation/ 9
Rank
Group
Direct premiums written (1)
Market share
4
Progressive Corp.
14,438,111
8.3
5
Farmers Insurance Group of Companies (3)
10,279,070
5.9
6
USAA Insurance Group
8,447,461
4.8
7
Liberty Mutual
8,263,737
4.7
8
Nationwide Mutual Group
7,136,179
4.1
9
Travelers Companies Inc.
3,393,014
1.9
10
American Family Mutual
3,300,454
1.9
(1) Before reinsurance transactions, includes state funds.
(2) Based on U.S. total, includes territories.
(3) Data for Farmers Insurance Group of Companies and Zurich Financial Group (which owns Farmers' management company) are
reported separately by SNL Financial LC.
Source: SNL Financial LC.
TOP TEN WRITERS OF COMMERCIAL AUTO INSURANCE BY DIRECT PREMIUMS WRITTEN, 2012
($000)
Rank
Group
Direct premiums written (1)
Market share
1
Travelers Companies Inc.
$2,001,805
8.0%
2
Progressive Corp.
1,732,227
6.9
3
Liberty Mutual
1,550,125
6.2
4
Nationwide Mutual Group
1,355,638
5.4
5
Zurich Insurance Group Ltd. (3)
1,195,441
4.8
6
American International Group
993,727
4.0
7
Old Republic International Corp.
809,595
3.2
8
Hartford Financial Services
557,904
2.2
9
Auto-Owners Insurance Co.
542,623
2.2
10
W. R. Berkley Corp.
473,687
1.9
(1) Before reinsurance transactions, excluding state funds.
(2) Based on U.S. total including territories.
(3) Data for Farmers Group and Zurich Financial Group (which owns Farmers’ management company) are reported separately by
SNL Financial.
Source: SNL Financial LC.
TOP TEN WRITERS OF COMMERCIAL LINES INSURANCE BY DIRECT PREMIUMS WRITTEN, 2012
($000)
Rank
Group
Direct premiums written (1)
Market share
1
American International Group
$18,217,418
7.1%
2
Travelers Companies Inc.
15,683,525
6.1
3
Liberty Mutual
15,313,721
5.9
4
Zurich Insurance Group Ltd. (3)
10,206,436
4.0
5
ACE Ltd.
8,294,989
3.2
6
CNA Financial Corp.
8,011,222
3.1
7
Chubb Corp.
7,265,146
2.8
8
Hartford Financial Services
7,260,797
2.8
9
Nationwide Mutual Group
6,637,002
2.6
10
QBE Insurance Group Ltd.
4,704,492
1.8
A Firm Foundation updates at www.iii.org/firm-foundation/ 10
(1) Before reinsurance transactions, includes state funds.
(2) Based on U.S. total, includes territories.
(3) Data for Farmers Insurance Group of Companies and Zurich Financial Group (which owns Farmers' management company) are
reported separately by SNL Financial LC.
Source: SNL Financial LC.
TOP TEN WRITERS OF WORKERS COMPENSATION INSURANCE BY DIRECT PREMIUMS
WRITTEN, 2012
($000)
Rank
Group
Direct premiums written (1)
Market share
1
Liberty Mutual
$4,179,078
8.7%
2
Travelers Companies Inc.
3,801,993
7.9
3
Hartford Financial Services
3,286,686
6.8
4
American International Group
2,952,157
6.1
5
Zurich Insurance Group Ltd. (3)
2,409,805
5.0
6
State Insurance Fund Workers' Comp.
1,943,838
4.0
7
Berkshire Hathaway Inc.
1,256,635
2.6
8
Old Republic International Corp.
1,110,916
2.3
9
Chubb Corp.
1,049,479
2.2
10
AmTrust Financial Services
995,575
2.1
(1) Before reinsurance transactions, includes some state funds.
(2) Based on U.S. total, includes territories.
(3) Data for Farmers Insurance Group of Companies and Zurich Financial Group (which owns Farmers' management company) are
reported separately by SNL Financial LC.
Source: SNL Financial LC.
TOP TEN WRITERS OF EARTHQUAKE INSURANCE BY DIRECT PREMIUMS WRITTEN, 2012
($000)
Rank
Group
Direct premiums written (1)
Market share
1
California Earthquake Authority
$566,664
19.9%
2
State Farm Mutual Automobile Insurance
231,877
8.1
3
Zurich Insurance Group Ltd. (3)
193,214
6.8
4
American International Group
183,585
6.5
5
Travelers Companies Inc.
137,800
4.8
6
GeoVera Insurance Holdings Ltd.
121,021
4.3
7
AXIS Capital Holdings Ltd.
102,776
3.6
8
Liberty Mutual
93,982
3.3
9
ACE Ltd.
78,917
2.8
10
Swiss Re Ltd.
65,725
2.3
(1) Before reinsurance transactions, includes state funds.
(2) Based on U.S. total, includes territories.
(3) Data for Farmers Insurance Group of Companies and Zurich Financial Group (which owns Farmers' management company) are
reported separately by SNL Financial LC.
Source: SNL Financial LC.
TOP TEN HEALTH INSURANCE GROUPS BY DIRECT PREMIUMS WRITTEN, 2012 (1)
($ billions)
A Firm Foundation updates at www.iii.org/firm-foundation/ 11
Rank
Group/company
Direct premiums written
Market share
1
WellPoint Inc.
$51.3
11.6%
2
UnitedHealth Group Inc.
49.6
11.2
3
Health Care Service Corporation
21.2
4.8
4
Aetna Inc.
20.9
4.7
5
Humana Inc.
16.6
3.7
6
Highmark Insurance Group
11.8
2.6
7
Kaiser Foundation Health Plan Inc.
10.7
2.4
8
EmblemHealth Inc.
10.0
2.3
9
Independence Blue Cross
9.6
2.2
10
Horizon Healthcare Services Inc.
9.1
2.0
(1) Based on health insurer annual statement data. Excludes health insurance data from the property/casualty and life/health annual
statements. Excludes territories.
Source: SNL Financial LC.
Taxes
The insurance industry is a major source of tax revenue on the state and federal level. In 2012
property/casualty insurers and life insurers incurred federal and foreign taxes were about $16
billion dollars. Insurance companies, including life/health and property/casualty companies,
paid $16.7 billion in premium taxes to the 50 states in 2012. On a per capita basis, this works out
to $53 for every person living in the United States.
INSURANCE INDUSTRY'S FEDERAL AND FOREIGN INCOME TAXES INCURRED, 2008-2012
($ billions)
Year
Property/casualty
Life
Total
2008
$7.7
-$0.1
$7.7
2009
8.5
10.7
19.1
2010
9.0
9.0
17.9
2011
3.0
5.1
8.1
2012
6.3
10.2
16.4
Source: SNL Financial LC.
A Firm Foundation updates at www.iii.org/firm-foundation/ 12
Comparison with Other Industries
The insurance industry employs 2.4 million people, accounting for about 25 percent of the
workforce in the U.S. financial activities sector, according to the Current Population Survey from
the U.S. Department of Labor.
EMPLOYMENT BY INDUSTRY, 2012
Industry
Employees (000)
Total, all industries
142,469
Agriculture, forestry, fishing, and hunting
2,186
Mining, quarrying, and oil and gas extraction
957
Construction
8,964
Manufacturing
14,686
Wholesale and retail trade
19,876
Transportation and utilities
7,271
Information
2,971
Financial activities
9,590
Insurance carriers and related activities
2,437
Professional and business services
16,539
Education and health services
32,350
Leisure and hospitality
13,193
Other services
7,168
Public administration
6,717
Source: Bureau of Labor Statistics, Current Population Survey (CPS).
Charitable Contributions
The insurance industry is a major contributor to charitable causes. In 2010 the industry,
including insurance carriers and related firms, made $924 million in charitable contributions,
according to an analysis of corporation tax returns by the Internal Revenue Service.
The property/casualty insurance segment of the industry contributed over $500 million to
charitable causes in 2010, with the bulk of the support going to education, health and social
services, and community and economic development, according to a 2011 report by McKinsey &
Company.
Each year in October the Insurance Industry Charitable Foundation (IICF) promotes a Week of
Giving, during which insurance industry employees volunteer at community programs
throughout the country. The IICF was established in 1994 and is completely directed and funded
by the insurance industry. Since its inception, the IICF has contributed more than $18 million in
grants to charities and 155,000 volunteer hours to hundreds of community nonprofit
organizations.
For information on the insurance industry's contribution to community development see
Impact, I.I.I’s online resource highlighting the insurance industry's contributions to community
development. Information on corporate giving (including contributions by insurance
foundations) is also available from the Foundation Center.
A Firm Foundation updates at www.iii.org/firm-foundation/ 13
BREAKDOWN OF THE PROPERTY/CASUALTY INSURANCE INDUSTRY’S CHARITABLE GIVING
BY CAUSES, 2010
Source: McKinsey IICF survey, Center for Encouraging Corporate Philanthropy, Giving by Numbers 2010, McKinsey analysis.
Contribution to GDP
Gross domestic product (GDP) is the total value of all final goods and services produced in the
economy. The GDP growth rate is the primary indicator of the state of the economy.
INSURANCE SECTOR’S SHARE OF GROSS DOMESTIC PRODUCT (GDP), 2008-2012
($ billions)
Insurance carriers and related activities
Year
Total GDP
GDP
Percent of total GDP
2008
$14,720.3
$339.7
2.3%
2009
14,417.9
357.5
2.5
2010
14,958.3
364.8
2.4
2011
15,533.8
378.5
2.4
2012
16,244.6
413.1
2.5
Source: U.S. Department of Commerce, Bureau of Economic Analysis
.
A Firm Foundation updates at www.iii.org/firm-foundation/ 14
Chapter 3: Insurers as Investors
Introduction
The insurance industry (property/casualty and life/health) is a key player in the capital markets,
with $5.8 trillion in cash and invested assets in 2012, according to SNL Financial. Total P/C cash
and invested assets were $1.4 trillion in 2012, according to SNL L/H cash and invested assets
totaled $3.4 trillion in 2012. The majority of these assets were in bonds (65 percent of P/C assets
and 75 percent of L/H assets).
Insurance companies invest the premiums they collect in state and local municipal bonds,
helping to fund the building of roads, schools and other public projects. They provide businesses
with capital for research, expansions and other ventures through their investments in corporate
equities and bonds.
Because their losses are more volatile than those in the life insurance sector, property/casualty
insurers invest largely in high-quality liquid securities, which can be sold quickly to pay claims
resulting from a major hurricane, earthquake or man-made disaster such as a terrorist attack. In
2011 alone, property/casualty insurers’ holdings in municipal bonds totaled $331.0 billion. Life
insurers, whose benefit payments are more predictable, invest more heavily in corporate stocks
and corporate and foreign bonds, with holdings in these sectors of $1.4 trillion and $2.1 trillion,
respectively, in 2011, according to the Federal Reserve.
Property/Casualty Insurance Industry Investments
Cash and invested assets of property/casualty insurance companies totaled $1.38 trillion in
2012. This represents 84 percent of total assets, which were $1.64 trillion. Most of these assets
were invested in highly liquid securities (high-quality stocks and bonds, for example, rather than
real estate), which can be sold quickly to pay claims in the event of a major catastrophe.
INVESTMENTS, PROPERTY/CASUALTY INSURERS, 2010-2012 (1)
($ millions, end of year)
Amount
Percent of total
investments
Investment type
2010
2011
2012
2010
2011
2012
Bonds
$873,836
$902,508
$904,247
66.39%
67.26%
65.39%
Stocks
226,035
238,873
265,810
17.17
17.80
19.22
Preferred
17,574
11,619
11,930
1.34
0.87
0.86
Common
208,461
227,254
253,880
15.84
16.94
18.36
Mortgage loans on real estate
4,171
4,969
5,682
0.32
0.37
0.41
First liens
3,885
4,767
5,428
0.30
0.36
0.39
Other than first liens
287
202
254
0.02
0.02
0.02
Real estate
9,773
10,371
10,372
0.74
0.77
0.75
A Firm Foundation updates at www.iii.org/firm-foundation/ 15
Amount
Percent of total
investments
Investment type
2010
2011
2012
2010
2011
2012
Properties occupied by
company
8,540
8,902
8,948
0.65
0.66
0.65
Properties held for income
production
1,057
1,216
1,227
0.08
0.09
0.09
Properties held for sale
176
252
198
0.01
0.02
0.01
Cash, cash equivalent and short-
term investments
85,962
72,605
82,323
6.53
5.41
5.95
Derivatives
643
649
592
0.05
0.05
0.04
Other invested assets
102,863
104,204
108,573
7.82
7.77
7.85
Receivable for securities
4,481
1,529
960
0.34
0.11
0.07
Securities lending reinvested
collateral assets
5,285
2,628
2,324
0.40
0.20
0.17
Aggregate write-in for invested
assets
3,200
3,568
4,006
0.24
0.27
0.29
Total cash and invested assets
$1,316,192
$1,341,904
$1,382,861
100.00%
100.00%
100.00%
(1) Includes cash and net admitted assets of property/casualty insurers.
Source: SNL Financial LC.
A Firm Foundation updates at www.iii.org/firm-foundation/ 16
BONDS
Bonds in or near default (Class 6) accounted for less than 1 percent (0.18 percent) of all short-
and long-term bonds owned by insurers at the end of 2012, according to SNL Financial LC.
INVESTMENTS, PROPERTY/CASUALTY INSURERS, 2012
(1) Cash and invested net admitted assets, as of December 31, 2012.
Source: SNL Financial LC.
A Firm Foundation updates at www.iii.org/firm-foundation/ 17
Life/Health Industry Investments
The life/health insurance industry’s cash and invested assets totaled $3.4 trillion in 2012,
according to SNL Financial.
INVESTMENTS, LIFE/HEALTH INSURERS, 2010-2012 (1)
($ billions, end of year)
Amount
Percent of total investments
Investment type
2010
2011
2012
2010
2011
2012
Bonds
$2,426.5
$2,536.2
$2,547.2
75.92%
75.47%
74.77%
Stocks
77.9
78.4
77.5
2.44
2.33
2.27
Preferred stock
9.1
8.1
7.8
0.29
0.24
0.23
Common stock
68.7
70.3
69.7
2.15
2.09
2.05
Mortgage loans on real
estate
307.4
323.1
335.6
9.62
9.61
9.85
First lien real estate
mortgage loans
305.2
321.1
333.1
9.55
9.56
9.78
Real estate loans less
first liens
2.1
2.0
2.5
0.07
0.06
0.07
Real estate
19.7
20.6
21.4
0.62
0.61
0.63
Occupied properties
5.7
5.7
5.5
0.18
0.17
0.16
Income generating
properties
13.6
14.6
15.4
0.43
0.43
0.45
Properties for sale
0.3
0.3
0.5
0.01
0.01
0.02
Cash, cash equivalent
and short-term
investments
95.1
96.5
106.6
2.97
2.87
3.13
Contract loans including
premium notes
123.5
126.0
127.5
3.86
3.75
3.74
Derivatives
21.6
44.4
41.6
0.68
1.32
1.22
Other invested assets
111.4
124.0
136.6
3.48
3.69
4.01
Receivables for securities
1.8
2.1
2.1
0.06
0.06
0.06
Securities lending
reinvested collateral
assets
10.6
10.1
10.8
0.33
0.30
0.32
Write-ins for invested
assets
0.5
0.2
-0.3
0.02
0.01
-0.01
Total cash and invested
assets
$3,196.2
$3,360.5
$3,406.7
100.00%
100.00%
100.00%
(1) Includes cash and net admitted assets of life/health insurers.
Source: SNL Financial LC.
A Firm Foundation updates at www.iii.org/firm-foundation/ 18
INVESTMENTS, LIFE/HEALTH INSURERS, BOND PORTFOLIO, 2012 (1)
(1) Long-term bonds with maturity dates over one year, as of December 31, 2012.
Source: SNL Financial LC.
Ownership of Municipal Securities
Insurance companies help fund the construction of schools, roads and healthcare facilities, and
a variety of other public sector projects through their investments in municipal bonds. The
property/casualty insurance industry invested $328 billion in such bonds in 2012, and the life
insurance industry invested $131 billion, according to the Federal Reserve.
INSURANCE COMPANY HOLDINGS OF U.S. MUNICIPAL SECURITIES AND LOANS, 2008-2012
($ billions, end of year)
2008
2009
2010
2011
2012
Property/casualty
$381.9
$369.4
$348.4
$331.0
$327.6
Life
47.1
73.1
112.3
121.6
131.2
Total
$429.0
$442.5
$460.7
$452.6
$458.8
Source: Board of Governors of the Federal Reserve System, June 6, 2013.
A Firm Foundation updates at www.iii.org/firm-foundation/ 19
Chapter 4: Defraying the Economic Costs of
Disasters
Introduction
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.
NATURAL DISASTER LOSSES IN THE UNITED STATES, 2013
Source: © 2014 Munich Re, NatCatSERVICE. As of January 2014.
CATASTROPHES IN THE UNITED STATES
Property Claim Services (PCS) defines a catastrophe as an event that causes $25 million or more
in insured property losses and affects a significant number of property/casualty policyholders and
insurers. The estimates in the following chart represent anticipated insured losses from
catastrophes on an industrywide basis, reflecting the total net insurance payment for personal
and commercial property lines of insurance covering fixed property, vehicles, boats, related-
property items, business interruption and additional living expenses. They exclude loss-
adjustment expenses. Catastrophe losses rose from $33.6 billion in 2011 to $35.0 billion in 2012,
the highest amount since the $62.3 billion recorded in 2005, the year of Hurricane Katrina.
Superstorm Sandy accounted for half of 2012 losses. While insured catastrophe losses rose in
2012, the number of catastrophes and the number of claims fell from 2011 to 2012.
A Firm Foundation updates at www.iii.org/firm-foundation/ 20
THE TEN MOST COSTLY CATASTROPHES, UNITED STATES (1)
($ millions)
Estimated insured property losses
Rank
Date
Peril
Dollars when
occurred
In 2012 dollars
(2)
1
Aug. 2005
Hurricane Katrina
$41,100
$47,424
2
Sep. 2001
Fire, explosion: World Trade
Center, Pentagon
terrorist attacks
18,779
23,883
3
Aug. 1992
Hurricane Andrew
15,500
23,349
4
Oct. 2012
Hurricane Sandy
18,750
18,750
5
Jan. 1994
Northridge, CA earthquake
12,500
18,043
6
Sep. 2008
Hurricane Ike
12,500
13,283
7
Oct. 2005
Hurricane Wilma
10,300
11,885
8
Aug. 2004
Hurricane Charley
7,475
8,912
9
Sep. 2004
Hurricane Ivan
7,110
8,476
10
Apr. 2011
Flooding, hail and wind including
the tornadoes
that struck Tuscaloosa and other
locations
7,300
7,431
(1) Property losses only. Excludes flood damage covered by the federally administered National Flood Insurance Program.
(2) Adjusted for inflation through 2012 by ISO using the GDP implicit price deflator.
Source: Property Claim Services (PCS), a division of Verisk Analytics.
ESTIMATED INSURED PROPERTY LOSSES, U.S. CATASTROPHES, 2004-2013 (1)
Year
Number of
catastrophes
Number of claims
(millions)
Dollars when occurred
($ billions)
In 2012 dollars (2)
($ billions)
2004
22
3.4
$27.5
$32.8
2005
24
4.4
62.3
71.9
2006
33
2.3
9.2
10.3
2007
23
1.2
6.7
7.3
2008
37
4.1
27.0
28.7
2009
28
2.2
10.6
11.1
2010
34
2.4
14.3
14.9
2011
30
4.9
33.6
34.2
2012
26
4.0
35.0
35.0
2013
29
1.8
12.9
NA
(1) Includes catastrophes causing insured property losses of at least $25 million in 1997 dollars and affecting a significant number of
policyholders and insurers. Excludes losses covered by the federally administered National Flood Insurance Program.
(2) Adjusted for inflation through 2012 by ISO using the GDP implicit price deflator.
NA=Data not available.
Source: Property Claim Services (PCS), a division of Verisk Analytics.
A Firm Foundation updates at www.iii.org/firm-foundation/ 21
INFLATION-ADJUSTED U.S. INSURED CATASTROPHE LOSSES BY CAUSE OF LOSS, 1993-2012
(1)
(2012 $ billions)
(1) Adjusted for inflation through 2012 by ISO using the GDP implicit price deflator. Excludes catastrophes causing direct losses less
than $25 million in 1997 dollars. Excludes flood damage covered by the federally administered National Flood Insurance Program.
(2) Includes losses from other perils that frequently accompany tornadoes such as hail, wind and thunderstorms. Excludes snow.
(3) Includes wildland fires.
(4) Includes losses from civil disorders, water damage, utility service disruptions, and any workers compensation catastrophes
generating losses in excess of PCS's threshold after adjusting for inflation.
Source: Property Claim Services (PCS), a division of Verisk Analytics.
Reinsurance
Reinsurance is insurance for insurance companies. Just as individuals and businesses buy
insurance to protect their assets, primary insurers, the companies that sell insurance to
consumers, buy reinsurance to protect their profits and solvency. Reinsurance fosters
competitive insurance markets by enabling smaller insurers to compete with larger ones. It
strengthens U.S. insurers by giving them access to global resources. Reinsurance is often sold in
layers, reaching up into the millions of dollars to protect insurance companies from possible, but
statistically highly unlikely events, such as an extraordinary number of homeowners claims as a
result of a hurricane or a large single event, such as the destruction of a high-value asset or a
massive legal judgment. As shown in the chart below, many reinsurers of U.S. risks are owned
by offshore firms.
TOP TEN U.S. PROPERTY/CASUALTY REINSURERS OF U.S. BUSINESS BY GROSS PREMIUMS
WRITTEN, 2012
($000)
Rank
Company (1)
Country of parent
company
Gross premiums
written
1
National Indemnity Company (Berkshire
Hathaway) (2)
U.S.
$7,242,437
A Firm Foundation updates at www.iii.org/firm-foundation/ 22
Rank
Company (1)
Country of parent
company
Gross premiums
written
2
QBE North America
Australia
6,568,732
3
Swiss Reinsurance America Corporation
Switzerland
4,327,392
4
Munich Re America, Corp.
Germany
4,070,596
5
Everest Reinsurance Company
Bermuda
3,456,915
6
Transatlantic Reinsurance Company/FairCo
U.S.
3,280,711
7
XL Reinsurance America
Ireland
3,070,123
8
Odyssey Reinsurance Group
Canada
2,589,229
9
Berkley Insurance Company
U.S.
1,916,915
10
Partner Reinsurance Company
Bermuda
1,226,831
(1) See Reinsurance Underwriting Report footnotes posted at http://www.reinsurance.org for list of affiliated companies included.
(2) Underwriting results exclude assumptions from affiliated General Re Group.
Source: Reinsurance Association of America.
Hurricanes
2012 AND 2013 ATLANTIC HURRICANE SEASONS
The 2012 Atlantic hurricane season witnessed 19 tropical storms, with 10 becoming hurricanes,
above the annual average of 12 storms and six hurricanes. Only four of these events made landfall
in the U.S., including Hurricane Sandy, one of the most damaging hurricanes to hit the United
States. Sandy, the 18th tropical storm of the 2012 hurricane season, made landfall as a post-
tropical storm on October 29, 2012, in New Jersey, causing extensive damage in that state as well
as to New York, Pennsylvania and Connecticut. Sandy caused 72 deaths in the U.S. and $18.75
billion in insured property losses in 15 states and the District of Columbia, not including National
Flood Insurance Program (NFIP) losses, according to Property Claim Services (PCS). This makes
it the third costliest U.S. hurricane, topped only by Hurricane Katrina in 2005 and Hurricane
Andrew in 1992. The only other significant storm to make landfall was Hurricane Isaac in August.
Isaac was a slow-moving Category 1 hurricane when it hit the Louisiana coast on August 28,
following roughly the same path as Hurricane Katrina, which caused record-breaking losses of
over $40 billion in 2005. Isaac stirred up strong winds and flooding in the Gulf, particularly in
Louisiana and Mississippi and caused five deaths in the U.S. PCS estimated that Isaac caused $1
billion in insured property damage, not including NFIP claims.
The 2013 Atlantic hurricane season produced 13 tropical storms, two of which became hurricanes.
Neither of these became major hurricanes, which is defined as a storm that reaches Category 3 or
higher. According to the National Oceanographic and Atmospheric Administration, the 2013
Hurricane Season had the fewest number of hurricanes since 1982. 2013 is expected to rank as
the sixth-least-active Atlantic hurricane season since 1950, in terms of the collective strength and
duration of named storms and hurricanes. In 2013 there were no U.S. hurricanes that met PCS’s
catastrophe threshold of at least $25 million in insured property losses. The first hurricane of the
season, Humberto, reached hurricane force on September 11, but did not make landfall. It is
topped only by 2002’s Hurricane Gustav as the latest forming first hurricane. Ingrid, the second
2013 hurricane, made landfall in Mexico on September 16. Together with Pacific Tropical Storm
Manuel, it caused massive flooding and over 40 deaths. Andrea, an Atlantic tropical storm, made
landfall in Florida on June 6 and caused one death. Losses from Andrea did not reach PCS’s
catastrophe threshold.
A Firm Foundation updates at www.iii.org/firm-foundation/ 23
THE TEN MOST COSTLY HURRICANES IN THE UNITED STATES (1)
($ millions)
Estimated insured loss (2)
Rank
Date
Location
Hurricane
Dollars when
occurred
In 2012
dollars (3)
1
Aug. 25-30, 2005
AL, FL, GA, LA, MS, TN
Hurricane Katrina
$41,100
$47,424
2
Aug. 24-26, 1992
FL, LA
Hurricane Andrew
15,500
23,349
3
Oct. 28-31, 2012
CT, DC, DE, MA, MD, ME, NC,
NH, NJ, NY, OH, PA, RI, VA,
VT, WV
Hurricane Sandy
18,750
18,750
4
Sep. 12-14, 2008
AR, IL, IN, KY, LA, MO, OH, PA,
TX
Hurricane Ike
12,500
13,283
5
Oct. 24, 2005
FL
Hurricane Wilma
10,300
11,885
6
Aug. 13-14, 2004
FL, NC, SC
Hurricane Charley
7,475
8,912
7
Sep. 15-21, 2004
AL, DE, FL, GA, LA, MD, MS,
NC, NJ, NY, OH, PA, TN, VA,
WV
Hurricane Ivan
7,110
8,476
8
Sep. 17-22, 1989
GA, NC, PR, SC, U.S. Virgin
Islands, VA
Hurricane Hugo
4,195
6,957
9
Sep. 20-26, 2005
AL, AR, FL, LA, MS, TN, TX
Hurricane Rita
5,627
6,493
10
Sep. 3-9, 2004
FL, GA, NC, NY, SC
Hurricane Frances
4,595
5,478
(1) Includes hurricanes occurring through 2012.
(2) Property coverage only. Excludes flood damage covered by the federally administered National Flood Insurance Program.
(3) Adjusted for inflation through 2012 by ISO using the GDP implicit price deflator.
Source: The Property Claim Services (PCS) unit of ISO, a Verisk Analytics company.
The following chart from the Property Claim Services (PCS) unit of ISO, a Verisk Analytics
company, ranks historic hurricanes based on their insured losses, adjusted for inflation. The chart
beneath it, from AIR Worldwide Corporation, estimates insured property losses from notable
hurricanes from past years, if they were to hit the nation again today with the same meteorological
parameters.
ESTIMATED INSURED LOSSES FOR THE TOP TEN HISTORICAL HURRICANES BASED ON
CURRENT EXPOSURES (1)
($ billions)
Rank
Date
Hurricane
Category
Insured loss
(current exposure)
1
Sep. 18, 1926
Miami Hurricane
4
$125
2
Aug. 24, 1992
Hurricane Andrew
5
57
3
Sep. 17, 1947
1947 Fort Lauderdale Hurricane
4
53
4
Sep. 17, 1928
Great Okeechobee Hurricane
5
51
5
Aug. 29, 2005
Hurricane Katrina
3 (2)
45
6
Sep. 9, 1965
Hurricane Betsy
3
45
7
Sep. 9, 1900
Galveston Hurricane of 1900
4
41
8
Sep. 10, 1960
Hurricane Donna
4
35
9
Sep. 21, 1938
The Great New England Hurricane
3
33
A Firm Foundation updates at www.iii.org/firm-foundation/ 24
Rank
Date
Hurricane
Category
Insured loss
(current exposure)
10
Sep. 15, 1950
Hurricane Easy
3
23
(1) Modeled loss to property, contents, and business interruption and additional living expenses for residential, mobile home,
commercial, and auto exposures as of December 31, 2011. Losses include demand surge.
(2) Refers to Katrina’s second landfall in Louisiana.
Source: AIR Worldwide Corporation.
Tornadoes
A tornado is a violently rotating column of air that extends from a thunderstorm and comes into
contact with the ground, according to the National Oceanic and Atmospheric Administration
(NOAA). In an average year about 1,000 tornadoes are reported nationwide, according to NOAA.
Tornado intensity is measured by the enhanced Fujita (EF) scale. The scale rates tornadoes on a
scale of 0 through 5, based on the amount and type of wind damage. It incorporates 28 different
“damage indicators,” based on damage to a wide variety of structures ranging from trees to
shopping malls.
THE FUJITA SCALE FOR TORNADOES
Original F scale (1)
Enhanced F scale (2)
Category
Damage
Wind speed (mph)
3-second
gust (mph)
F-0
Light
40-72
65-85
F-1
Moderate
73-112
86-110
F-2
Considerable
113-157
111-135
F-3
Severe
158-207
136-165
F-4
Devastating
208-260
166-200
F-5
Incredible
261-318
Over 200
(1) Original scale: wind speeds represent fastest estimated speeds over ¼ mile.
(2) Enhanced scale: wind speeds represent maximum 3-second gusts. Implemented on February 1, 2007.
Source: U.S. Department of Commerce, National Oceanic and Atmospheric Administration.
NUMBER OF TORNADOES AND RELATED DEATHS PER MONTH, 2012 (1)
(1) Excludes Puerto Rico. Excludes tornadoes crossing state lines. Counts these tornadoes as one event.
Source: U.S. Department of Commerce, Storm Prediction Center, National Weather Service.
A Firm Foundation updates at www.iii.org/firm-foundation/ 25
TORNADOES AND RELATED DEATHS IN THE UNITED STATES, 1992-2012 (1)
Year
Tornadoes
Deaths
Year
Tornadoes
Deaths
Year
Tornadoes
Deaths
1992
1,297
39
1999
1,345
94
2006
1,103
67
1993
1,173
33
2000
1,071
40
2007
1,098
81
1994
1,082
69
2001
1,216
40
2008
1,692
126
1995
1,234
30
2002
941
55
2009
1,156
21
1996
1,173
25
2003
1,376
54
2010
1,282
45
1997
1,148
67
2004
1,819
36
2011
1,691
553
1998
1,424
130
2005
1,264
38
2012 (2)
939
70
(1) Excludes Puerto Rico. Does not include tornadoes crossing state lines. Counts these tornadoes as one event.
(2) Preliminary.
Source: U.S. Department of Commerce, Storm Prediction Center, National Weather Service.
Earthquakes
The costliest U.S. earthquake, the 1994 Northridge quake, caused $15.3 billion in insured damages
when it occurred (about $24 billion in 2013 dollars). It ranks as the fifth-costliest U.S. disaster,
based on insured property losses (in 2012 dollars), topped only by Hurricane Katrina, the attacks
on the World Trade Center, Hurricane Andrew and Superstorm Sandy. Six of the costliest U.S.
quakes, based on insured losses, were in California, according to Munich Re. There were six
earthquakes in the United States in 2013 which caused only minor damage, according to Munich
Re.
THE TEN MOST COSTLY U.S. EARTHQUAKES (1)
($ millions)
Insured losses (2)
Rank
Date
Location
Overall losses
when occurred
When
occurred
In 2013
dollars (3)
Fatalities
1
Jan. 17, 1994
California: Northridge, Los
Angeles, San Fernando Valley,
Ventura, Orange
$44,000
$15,300
$24,050
61
2
Apr. 18, 1906
California: San Francisco,
Santa Rosa, San Jose
524
180
4,240 (4)
3,000
3
Oct. 17, 1989
California: Loma Prieta, Santa
Cruz, San Francisco, Oakland,
Berkeley, Silicon Valley
10,000
960
1,800
68
4
Feb. 28, 2001
Washington: Olympia, Seattle,
Tacoma; Oregon
2,000
300
395
1
5
Mar. 27-28, 1964
Alaska: Anchorage, Kodiak
Island, Seward, Valdez,
Portage, Whittier, Cordova,
Homer, Seldovia; Hawaii;
includes tsunami
540
45
340
131
6
Feb. 9, 1971
California: San Fernando
Valley, Los Angeles
553
35
200
65
7
Oct. 1, 1987
California: Los Angeles,
Whittier
360
75
155
8
8
Apr. 4, 2010
California: San Diego,
Calexico, El Centro, Los
150
100
105
NA
A Firm Foundation updates at www.iii.org/firm-foundation/ 26
Insured losses (2)
Rank
Date
Location
Overall losses
when occurred
When
occurred
In 2013
dollars (3)
Fatalities
Angeles, Imperial; Arizona:
Phoenix, Yuma
9
Sep. 3, 2000
California: Napa
80
50
68
NA
10
Jun. 28, 1992
California: San Bernardino
100
40
66
1
(1) Costliest U.S. earthquakes occurring from 1950 to 2013, based on insured losses when occurred. Includes the 1906 San
Francisco, California earthquake, for which reliable insured losses are available.
(2) Based on property losses including, if applicable, agricultural, offshore, marine, aviation and National Flood Insurance Program
losses in the United States and may differ from data shown elsewhere.
(3) Inflation-adjusted to 2013 dollars by Munich Re.
(4) Inflation-adjusted to 2013 dollars based on 1913 Bureau of Labor Statistics data (earliest year available).
NA=Data not available.
Source: © 2014 Munich Re, Geo Risks Research, NatCatSERVICE.
The previous chart ranks historic earthquakes based on their total insured property losses,
adjusted for inflation. The chart below uses a computer model to measure the estimated impact
of historical quakes according to current exposures. The analysis, conducted in 2012, is based on
AIR Worldwide's U.S. earthquake model. It makes use of the firm's property exposure database
and takes into account the current number and value of exposed properties.
ESTIMATED INSURED LOSSES FOR THE TOP TEN HISTORICAL EARTHQUAKES BASED ON
CURRENT EXPOSURES (1)
($ billions)
Rank
Date
Location
Magnitude
Insured loss
(current exposures)
1
Feb. 7, 1812
New Madrid, MO
7.7
$112
2
Apr. 18, 1906
San Francisco, CA
7.8
93
3
Aug. 31, 1886
Charleston, SC
7.3
44
4
Jun. 1, 1838
San Francisco, CA
7.4
30
5
Jan. 17, 1994
Northridge, CA
6.7
23
6
Oct. 21, 1868
Hayward, CA
7.0
23
7
Jan. 9, 1857
Fort Tejon, CA
7.9
8
8
Oct. 17, 1989
Loma Prieta, CA
6.3
7
9
Mar. 10, 1933
Long Beach, CA
6.4
5
10
Jul. 1, 1911
Calaveras, CA
6.4
4
(1) Modeled loss to property, contents, and business interruption and additional living expenses for residential, mobile home,
commercial, and auto exposures as of December 31, 2011. Losses include demand surge and fire following earthquake. Policy
conditions and earthquake insurance take-up rates are based on estimates by state insurance departments and client claims data.
Source: AIR Worldwide Corporation.
Wildfires
Fire plays an important role in the life of a forest, clearing away dead wood and undergrowth to
make way for younger trees. But for much of the last century, fire-suppression policies have
sought to extinguish wildfires as quickly as possible to preserve timber and real estate. This
approach has led to the accumulation of brush and other vegetation that is easily ignited and
A Firm Foundation updates at www.iii.org/firm-foundation/ 27
serves as fuel for wildfires. Most of the large fires with significant property damage have occurred
in California, where some of the fastest developing counties are in forest areas.
THE TEN MOST COSTLY WILDLAND FIRES IN THE UNITED STATES (1)
($ millions)
Estimated insured loss
Rank
Date
Location
Dollars when
occurred
In 2012 dollars
(2)
1
Oct. 20-21, 1991
Oakland Fire, CA
$1,700
$2,622
2
Oct. 21-24, 2007
Witch Fire, CA
1,300
1,412
3
Oct. 25-Nov. 4, 2003
Cedar Fire, CA
1,060
1,299
4
Oct. 25-Nov. 3, 2003
Old Fire, CA
975
1,195
5
Nov. 2-3, 1993
Los Angeles County Fire,
CA
375
553
6
Sep. 4-9, 2011
Bastrop County Complex
Fire, TX
530
539
7
Oct. 27-28, 1993
Orange County Fire, CA
350
516
8
Jun. 24-28, 2012
Waldo Canyon Fire, CO
450
450
9
Jun. 27-Jul. 2, 1990
Santa Barbara Fire, CA
265
423
10
Sep. 6-13, 2010
Fourmile Canyon Fire, CO
210
218
(1) Property coverage only for catastrophic wildfires. Effective January 1, 1997, Property Claim Services (PCS) defines catastrophes
as events that cause more than $25 million in insured property damage and that affect a significant number of insureds and
insurers. From 1982 to 1996, PCS used a $5 million threshold in defining catastrophes. Before 1982, PCS used a $1 million
threshold.
(2) Adjusted for inflation through 2012 by ISO using the GDP implicit price deflator.
Source: Property Claim Services (PCS), a division of Verisk Analytics.
Terrorism
A total of 2,976 people perished in the September 11, 2001 terrorist attacks in New York,
Washington and Pennsylvania, excluding the 19 hijackers. Total insured losses (including liability
losses) from the terrorist attacks on the World Trade Center in New York City and the Pentagon
are about $42.1 billion (in 2012 dollars), including property, life and liability insurance claim
costs. Loss estimates may differ from estimates calculated by other organizations. It was the worst
terrorist attack on record in terms of fatalities and insured property losses, which totaled about
$24.6 billion (in 2012 dollars). The April 15, 2013 Boston Marathon bombing, which killed three
people and injured 264, marked the first successful terrorist attack on U.S. soil since the
September 11 tragedy. As of August 2013 insurers had paid out $1.18 million in losses related to
the incident, according to an analysis by the Massachusetts Division of Insurance based on the
claims paid by the state’s top 25 insurers and the Massachusetts FAIR Plan, the state’s insurer of
last resort.
A Firm Foundation updates at www.iii.org/firm-foundation/ 28
THE TWENTY WORST TERRORIST ACTS BY INSURED PROPERTY LOSSES
(2012 $ millions)
Rank
Date
Country
Location
Event
Insured
property
loss (1)
Fatalities
1
Sep. 11, 2001
U.S.
New York,
Washington,
DC, Pennsylvania
Hijacked airliners crash into
World Trade Center and
Pentagon
$24,364 (2)
2,982
2
Apr. 24, 1993
U.K.
London
Bomb explodes near NatWest
tower in the financial district
1,176
1
3
Jun. 15, 1996
U.K.
Manchester
Irish Republican Army (IRA)
car bomb explodes near
shopping mall
966
0
4
Apr. 10, 1992
U.K.
London
Bomb explodes in financial
district
870
3
5
Feb. 26, 1993
U.S.
New York
Bomb explodes in garage of
World Trade Center
810
6
6
Jul. 24, 2001
Sri Lanka
Colombo
Rebels destroy 3 airliners, 8
military aircraft and heavily
damage 3 civilian aircraft
517
20
7
Feb. 9, 1996
U.K.
London
IRA bomb explodes in South
Key Docklands
336
2
8
Jun. 23, 1985
North Atlantic
Irish Sea
Bomb explodes on board of
an Air India Boeing 747
209
329
9
Apr. 19, 1995
U.S.
Oklahoma City, OK
Truck bomb crashes into
government building
189
166
10
Sep. 12, 1970
Jordan
Zerqa, Dawson's
Field
(disused RAF
airstrip in desert)
Hijacked Swissair DC-8, TWA
Boeing 707, BOAC VC-10
dynamited on ground
165
0
11
Sep. 6, 1970
Egypt
Cairo
Hijacked PanAm B-747
dynamited on ground
143
0
12
Apr. 11, 1992
U.K.
London
Bomb explodes in financial
district
125
0
13
Nov. 26, 2008
India
Mumbai
Attack on two hotels; Jewish
center
109
172
14
Mar. 27, 1993
Germany
Weiterstadt
Bomb attack on a newly built,
still unoccupied prison
92
0
15
Dec. 30, 2006
Spain
Madrid
Bomb explodes in car garage
at Barajas Airport
75
2
16
Dec. 21, 1988
U.K.
Lockerbie
Bomb explodes on board of a
PanAm Boeing 747
73
270
17
Jul. 25, 1983
Sri Lanka
Riot
61
0
18
Jul. 7, 2005
U.K.
London
Four bombs explode during
rush hour in a tube and bus
61
52
19
Nov. 23, 1996
Comoros
Indian Ocean
Hijacked Ethiopian Airlines
Boeing 767-260 ditched at
sea
59
127
20
Mar. 17, 1992
Argentina
Buenos Aires
Bomb attack on Israel's
embassy in Buenos Aires
49
24
(1) Includes bodily injury and aviation hull losses. Updated to 2012 dollars by the Insurance Information Institute using the U.S.
Bureau of Labor Statistics CPI Inflation Calculator.
(2) Differs from inflation-adjusted estimates made by other organizations due to the use of different deflators.
Source: Swiss Re.
A Firm Foundation updates at www.iii.org/firm-foundation/ 29
Chapter 5: Contribution to Selected Industries
Introduction
When life insurance claims are paid, funds flow into the general economy, as beneficiaries spend
the money they receive. When property/casualty insurance claims are paid, funds flow to the
industries that supply claimants with the goods and services necessary for their recovery.
Property/casualty insurers pay out billions of dollars each year to settle claims. Many of the
payments go to businesses, such as auto repair companies, that help claimants get their lives
back together after an accident, fire, windstorm or other incident that caused the injury or
property damage. Insurance claim payments support local businesses, enabling them to provide
jobs and pay taxes that support the local economy.
All industries benefit from property/casualty insurance because it pays for losses that might
otherwise have put them out of business. But certain industries derive a good portion of their
income from insurers’ claim payments. These businesses include the auto parts and repair
industries (auto insurance), the building construction and supply industries (homeowners and
commercial property insurance), health care services (auto, workers compensation and other
liability insurance coverages) and legal services.
The charts that follow provide some indication of how much insurers contribute to the economy
indirectly through some of the industries that provide these services. In addition,
property/casualty insurance claims payments reimburse victims of theft and help make up for
loss of income while people who have been injured are recuperating and businesses that have
been hit by a disaster prepare to resume operations.
Auto Repair Industry
THE INSURANCE INDUSTRY’S CONTRIBUTION TO THE AUTO REPAIR INDUSTRY
The primary recipients of auto insurance claim payments are auto repair and auto body shops
and window glass installers. Others include new and used car dealers, tire dealers and
manufacturers of the parts required for vehicle repair and restoration.
Collision and comprehensive coverages pay for damage to or theft of a policyholder's car.
Additional sums are paid by insurers to repair other vehicles damaged by the policyholder in a
crash. This money is paid under the liability portion of the policy, which also covers legal costs.
INCURRED LOSSES FOR AUTO INSURANCE, 2008-2012 (1)
($000)
2008
2009
2010
2011
2012
Private passenger
auto
Liability
$60,806,847
$63,448,211
$64,110,267
$64,310,776
$65,018,837
Physical damage
39,189,255
36,497,330
36,454,102
40,589,159
41,261,719
Commercial auto
A Firm Foundation updates at www.iii.org/firm-foundation/ 30
2008
2009
2010
2011
2012
Liability
9,956,316
9,345,288
8,798,119
9,363,647
10,513,434
Physical damage
3,498,383
3,005,162
2,911,013
3,164,880
3,250,715
Total
$113,450,801
$112,295,991
$112,273,501
$117,428,462
$120,044,705
(1) Losses occurring within a fixed period, whether or not adjusted or paid during the same period, after reinsurance transactions.
Source: SNL Financial LC.
Construction Industry
THE INSURANCE INDUSTRY’S CONTRIBUTION TO THE CONSTRUCTION INDUSTRY
The construction industry benefits from claims filed under homeowners and commercial
property insurance policies.
INCURRED LOSSES FOR HOMEOWNERS INSURANCE, 2008-2012 (1)
($000)
Year
Incurred losses
2008
$42,531,094
2009
36,903,733
2010
39,497,587
2011
50,709,943
2012
41,107,253
(1) Losses occurring within a fixed period, whether or not adjusted or paid during the same period, after reinsurance transactions.
Source: SNL Financial LC.
INCURRED LOSSES FOR COMMERCIAL INSURANCE, 2008-2012 (1)
($000)
Year
Incurred losses
2008
$141,340,999
2009
111,576,968
2010
112,727,166
2011
129,993,492
2012
126,819,159
(1) Losses occurring within a fixed period, whether or not adjusted or paid during the same period, after reinsurance transactions.
Source: SNL Financial LC.
Healthcare Industry
THE INSURANCE INDUSTRY’S CONTRIBUTION TO THE HEALTHCARE INDUSTRY
The healthcare industry is a prime recipient of claims filed under auto, workers compensation
and other liability insurance policies.
A Firm Foundation updates at www.iii.org/firm-foundation/ 31
WORKERS COMPENSATION BENEFITS, COVERAGE AND COSTS, 2010-2011
2010
2011
Percent
change
Covered workers (000)
124,454
125,833
1.1%
Covered wages ($ billions)
$5,820
$6,049
3.9
Workers compensation benefits paid ($
billions)
58.2
60.2
3.5
Medical benefits
28.6
29.9
4.5
Cash benefits
29.6
30.3
2.6
Employer costs for workers compensation ($
billions)
71.9
77.1
7.1
Source: National Academy of Social Insurance.
PRIVATE PASSENGER AUTO INSURANCE LOSSES, 2003-2012 (1)
Liability
Bodily injury (2)
Property damage (3)
Year
Claim
frequency (4)
Claim
severity
(5),(6)
Claim
frequency (4)
Claim
severity (5)
2003
1.12
$11,135
3.84
$2,558
2004
1.11
11,640
3.75
2,596
2005
1.04
12,282
3.55
2,717
2006
0.98
12,907
3.40
2,796
2007
0.90
13,361
3.46
2,847
2008
0.91
14,067
3.42
2,903
2009
0.89
13,891
3.49
2,869
2010
0.91
14,406
3.53
2,881
2011
0.92
14,848
3.56
2,958
2012
0.95
14,653
3.50
3,073
Physical damage (7)
Collision
Comprehensive (8)
Year
Claim
frequency (4)
Claim
severity (5)
Claim
frequency (4)
Claim
severity (5)
2003
5.13
$2,921
2.76
$1,324
2004
4.85
3,080
2.46
1,417
2005
5.04
3,067
2.38
1,457
2006
4.87
3,194
2.40
1,528
2007
5.20
3,109
2.48
1,524
2008
5.35
3,005
2.57
1,551
2009
5.48
2,869
2.75
1,389
2010
5.69
2,778
2.62
1,476
2011
5.75
2,861
2.79
1,490
A Firm Foundation updates at www.iii.org/firm-foundation/ 32
Liability
Bodily injury (2)
Property damage (3)
Year
Claim
frequency (4)
Claim
severity
(5),(6)
Claim
frequency (4)
Claim
severity (5)
2012
5.56
2,950
2.62
1,585
(1) For all limits combined. Data are for paid claims.
(2) Excludes Massachusetts and most states with no-fault automobile insurance laws.
(3) Excludes Massachusetts, Michigan and New Jersey.
(4) Claim frequency is claims per 100 car years. A car year is equal to 365 days of insured coverage for one vehicle.
(5) Claim severity is the size of the loss, measured by the average amount paid for each claim.
(6) Includes loss adjustment expenses.
(7) Excludes Massachusetts, Michigan and Puerto Rico. Based on coverage with a $500 deductible.
(8) Excludes wind and water losses.
Source: ISO, a Verisk Analytics company.
A Firm Foundation updates at www.iii.org/firm-foundation/ 33
Chapter 6: Role of Credit/Mortgage Insurance
Credit Insurance for Short-Term Trade Receivables
ROLE OF CREDIT/MORTGAGE INSURANCE
Specialized insurance products protect lenders and borrowers, shielding businesses such as
exporters from customer defaults and facilitating the financing of mortgages and other
transactions. These products include credit insurance for short-term receivables.
CREDIT INSURANCE FOR CUSTOMER DEFAULTS
Credit insurance protects merchants, exporters, manufacturers and other businesses that extend
credit to their customers from losses or damages resulting from the nonpayment of debts owed
them for goods and services provided in the normal course of business. Credit insurance
facilitates financing, enabling insured companies to get better credit terms from banks. The high
combined ratio from 2007 to 2010 reflects the crisis in financial markets.
CREDIT INSURANCE, 2003-2012
($000)
Year
Net premiums
written (1)
Annual percent
change
Combined
ratio (2)
Annual point
change (3)
2003
$640,580
-11.0%
92.3
-9.9 pts.
2004
806,381
25.9
96.9
4.5
2005
936,108
16.1
81.1
-15.8
2006
1,090,145
16.5
86.0
4.9
2007
1,405,444
28.9
129.3
43.4
2008
1,413,313
0.6
171.0
41.6
2009
1,224,474
-13.4
140.8
-30.2
2010
1,344,766
9.8
127.2
-13.6
2011
1,490,135
10.8
94.5
-32.7
2012
1,457,796
-2.2
91.3
-3.2
(1) After reinsurance transactions, excludes state funds.
(2) After dividends to policyholders. A drop in the combined ratio represents an improvement; an increase represents a
deterioration.
(3) Calculated from unrounded data.
Source: SNL Financial LC.
Private Mortgage Insurance
MORTGAGE GUARANTY INSURANCE
Private mortgage insurance (PMI), also known as mortgage guaranty insurance, guarantees that,
in the event of a default, the insurer will pay the mortgage lender for any loss resulting from a
property foreclosure, up to a specific amount. PMI, which is purchased by the borrower but
protects the lender, is sometimes confused with mortgage life insurance, a life insurance product
A Firm Foundation updates at www.iii.org/firm-foundation/ 34
that pays off the mortgage if the borrower dies before the loan is repaid. Banks generally require
PMI for all borrowers with down payments of less than 20 percent. The industry’s combined
ratio, a measure of profitability, deteriorated (i.e., rose) significantly in 2007 and 2008,
reflecting the economic downturn and the subsequent rise in mortgage defaults. The combined
ratio improved in 2009 and 2010 as conditions began to ease, but remains at high levels.
MORTGAGE GUARANTY INSURANCE, 2003-2012
($000)
Year
Net premiums
written (1)
Annual
percent
change
Combined ratio
(2)
Annual point
change (3)
2003
$4,285,447
7.5%
67.6
9.3 pts.
2004
4,323,071
0.9
75.6
8.0
2005
4,454,711
3.0
75.2
-0.4
2006
4,565,899
2.5
71.0
-4.2
2007
5,192,104
13.7
129.0
58.1
2008
5,371,878
3.5
219.8
90.8
2009
4,564,406
-15.0
201.9
-17.9
2010
4,248,798
-6.9
198.4
-3.6
2011
4,242,340
-0.2
219.0
20.7
2012
3,965,896
-6.5
189.7
-29.4
(1) After reinsurance transactions, excludes state funds.
(2) After dividends to policyholders. A drop in the combined ratio represents an improvement; an increase represents a
deterioration.
(3) Calculated from unrounded data.
Source: SNL Financial LC.
Credit Life/Health
Credit insurance protects merchants, exporters, manufacturers and other businesses that extend
credit to their customers from losses or damages resulting from the nonpayment of debts owed
them for goods and services provided in the normal course of business. Credit insurance
facilitates financing, enabling insured companies to get better credit terms from banks.
CREDIT LIFE, AND CREDIT ACCIDENT AND HEALTH INSURANCE DIRECT PREMIUMS WRITTEN,
2003-2012
($000)
Year
Credit life
Credit accident and health
2003
$1,415,084
$1,554,623
2004
1,526,021
1,554,325
2005
1,607,487
1,522,791
2006
1,564,124
1,442,604
2007
1,631,338
1,407,579
2008
1,563,207
1,251,052
A Firm Foundation updates at www.iii.org/firm-foundation/ 36
Chapter 7: Income Replacement
Life Insurance Payouts
INCOME REPLACEMENT
Life insurance benefits and losses totaled $587 billion in 2012, including life insurance death
benefits, annuity benefits, disability benefits and other payouts. The largest payout, $246
billion, was for surrender benefits and withdrawals from life insurance contracts made to
policyholders who terminated their policies early or withdrew cash from their policies.
LIFE INSURANCE INDUSTRY BENEFITS AND LOSSES, 2008-2012
($000)
2008
2009
2010
2011
2012
Death benefits
$57,857,956
$57,609,758
$56,523,314
$60,627,940
$61,679,308
Matured endowments, excluding
annual pure endowments
621,018
649,867
679,242
767,092
415,088
Annuity benefits
66,517,129
64,061,436
66,781,657
70,873,443
70,296,479
Disability, accident and health
benefits (1)
111,893,856
118,292,626
119,594,551
118,822,197
123,515,360
Coupons, pure endowment and
similar benefits
18,655
17,027
16,264
16,075
17,179
Surrender benefits, withdrawals for
life contracts
291,543,802
228,688,291
216,846,768
237,281,879
245,728,482
Group conversions
14,440
26,516
29,136
27,884
27,891
Interest and adjustments on deposit
type contracts
15,031,048
10,404,385
9,541,403
9,829,729
7,321,456
Payments on supplementary
contracts with life contingencies
1,457,848
1,527,354
1,578,300
1,690,841
1,809,677
Increase in aggregate reserve
129,186,885
88,820,781
86,625,320
131,379,911
76,446,031
Total benefits and losses
$674,142,638
$570,098,041
$558,215,953
$631,316,990
$587,256,949
(1) Excludes benefits paid by health insurance companies and property/casualty insurance companies.
Source: SNL Financial LC.
Disability Insurance Premiums
DISABILITY INSURANCE
Disability insurance pays an insured person an income when he or she is unable to work because
of an accident or illness.
A Firm Foundation updates at www.iii.org/firm-foundation/ 37
INDIVIDUAL DISABILITY INSURANCE, NEW ISSUES SALE, 2012 (1)
Number
Of policies
Percent change
2011-2012
Annualized
premiums
Percent change
2011-2012
Noncancellable
152,827
2%
$314,944,244
5%
Guaranteed
renewable
327,944
-6
211,957,298
-3
Total
480,771
-3%
$526,901,544
2%
(1) Short-term and long-term individual disability income insurance. Based on a LIMRA survey of 21 personal disability insurance
companies. Excludes commercial disability income.
Source: LIMRA International.
INDIVIDUAL DISABILITY INSURANCE IN FORCE, 2012 (1)
Number
of policies
Percent change
2011-2012
Annualized
premiums
Percent change
2011-2012
Noncancellable
2,434,921
-1%
$4,054,384,941
2%
Guaranteed
renewable
1,637,803
1
1,138,954,027
3
Total
4,072,724
(2)
$5,193,338,968
2%
(1) Short-term and long-term individual disability income insurance. Based on a LIMRA survey of 21 disability insurance companies.
Excludes commercial disability income.
(2) Less than 0.5 percent.
Source: LIMRA International.
Workers Compensation Indemnity Payouts
WORKERS COMPENSATION
Workers compensation insurance provides for the cost of medical care and rehabilitation for
injured workers. It also provides for lost wages and death benefits for the dependents of persons
killed in work-related accidents. Workers compensation systems vary from state to state. There
are two components to workers compensation claims costs: cash payments for lost time (which
are usually linked to a state’s average weekly wage), known as indemnity costs, and payments
for medical care.
WORKERS COMPENSATION BENEFITS, COVERAGE AND COSTS, 2010-2011
2010
2011
Percent
change
Covered workers (000)
124,454
125,833
1.1%
Covered wages ($ billions)
$5,820
$6,049
3.9
Workers compensation benefits paid ($ billions)
58.2
60.2
3.5
Medical benefits
28.6
29.9
4.5
Cash benefits
29.6
30.3
2.6
Employer costs for workers compensation ($ billions)
71.9
77.1
7.1
Source: National Academy of Social Insurance.
A Firm Foundation updates at www.iii.org/firm-foundation/ 38
Chapter 8: Contribution to State Economies
Employment
CONTRIBUTION TO STATE ECONOMIES
The insurance industry is a major contributor to state economies, providing employment,
paying taxes and supporting community development. In addition, insurance company claims
payments help ensure the economic security of individuals and businesses, and help sustain a
number of related industries. The magnitude of these claims payments for major insurance
lines is highlighted in the "Incurred Losses by State" section. Incurred losses are a measurement
of insurance claims occurring within a fixed period.
INSURANCE CARRIERS AND RELATED ACTIVITIES EMPLOYMENT BY STATE, 2012 (1)
State
Number of
employees
State
Number of
employees
Alabama
36,775
Montana
8,757
Alaska
2,656
Nebraska
34,166
Arizona
52,112
Nevada
16,591
Arkansas
22,031
New Hampshire
16,946
California
293,807
New Jersey
98,339
Colorado
53,042
New Mexico
11,390
Connecticut
71,080
New York
190,027
Delaware
9,120
North Carolina
74,070
D.C.
4,252
North Dakota
10,527
Florida
193,124
Ohio
132,287
Georgia
95,203
Oklahoma
31,910
Hawaii
10,584
Oregon
33,028
Idaho
12,728
Pennsylvania
150,668
Illinois
144,922
Rhode Island
11,673
Indiana
60,756
South Carolina
41,408
Iowa
55,026
South Dakota
11,845
Kansas
38,695
Tennessee
62,258
Kentucky
39,614
Texas
245,704
Louisiana
35,037
Utah
25,084
Maine
13,418
Vermont
5,142
Maryland
48,516
Virginia
59,368
Massachusetts
80,566
Washington
52,577
Michigan
77,714
West Virginia
12,129
Minnesota
81,113
Wisconsin
83,085
Mississippi
19,452
Wyoming
3,514
Missouri
67,364
United States
3,041,200
(1) Total full-time and part-time employment.
Note: Does not match data shown elsewhere due to the use of different surveys. Data as of September 2013, based on revised
estimates for 2001-2011.
Source: U.S. Department of Commerce, Bureau of Economic Analysis, Regional Economic Information System.
A Firm Foundation updates at www.iii.org/firm-foundation/ 39
INSURANCE CARRIERS AND RELATED ACTIVITIES COMPENSATION BY STATE, 2011-2012
($000)
Annual payroll (1)
State
2011
2012
Alabama
$2,364,748
$2,306,285
Alaska
149,981
155,096
Arizona
2,900,835
3,008,390
Arkansas
963,538
1,009,316
California
20,117,126
21,227,784
Colorado
3,214,050
3,416,995
Connecticut
8,171,134
8,392,213
D.C.
510,655
546,495
Delaware
696,697
718,185
Florida
11,111,436
11,799,545
Georgia
6,081,139
6,567,110
Hawaii
564,758
585,286
Idaho
531,829
556,768
Illinois
10,955,993
11,464,141
Indiana
3,515,425
3,665,093
Iowa
3,528,235
3,622,143
Kansas
2,070,556
2,268,372
Kentucky
2,382,546
2,509,475
Louisiana
1,978,423
1,925,761
Maine
931,272
939,117
Maryland
3,527,950
3,737,736
Massachusetts
7,276,547
7,433,937
Michigan
4,421,342
4,591,861
Minnesota
6,610,104
7,297,733
Mississippi
787,944
830,588
Missouri
3,780,614
4,261,303
Montana
400,497
402,392
Nebraska
1,939,964
2,004,637
Nevada
845,786
882,973
New Hampshire
1,314,508
1,343,573
New Jersey
8,935,130
9,643,778
New Mexico
530,991
545,518
New York
18,169,826
18,572,635
North Carolina
4,013,448
4,140,111
North Dakota
473,849
484,507
Ohio
8,386,776
8,613,452
Oklahoma
1,419,385
1,519,672
Oregon
2,018,279
2,104,497
Pennsylvania
10,486,017
11,140,744
A Firm Foundation updates at www.iii.org/firm-foundation/ 40
Annual payroll (1)
State
2011
2012
Rhode Island
834,327
852,024
South Carolina
2,161,629
2,176,144
South Dakota
468,369
496,383
Tennessee
3,514,180
3,882,491
Texas
14,073,579
14,995,797
Utah
1,172,082
1,243,825
Vermont
322,437
330,316
Virginia
3,728,978
4,066,606
Washington
3,516,968
3,617,188
West Virginia
528,005
543,572
Wisconsin
5,346,894
5,522,465
Wyoming
136,219
141,972
United States
$203,883,000
$214,104,000
(1) Private nonfarm compensation.
Source: U.S. Department of Commerce, Bureau of Economic Analysis, Regional Economic Information System.
Premiums
DIRECT PREMIUMS WRITTEN, P/C INSURANCE BY STATE, 2012 (1)
($000)
State
Total, all lines
State
Total, all lines
Alabama
$6,881,531
Montana
$2,008,690
Alaska
1,714,465
Nebraska
4,024,577
Arizona
8,088,771
Nevada
3,821,721
Arkansas
4,276,862
New Hampshire
2,031,021
California
58,264,141
New Jersey
17,846,257
Colorado
8,605,248
New Mexico
2,733,363
Connecticut
7,296,545
New York
37,928,923
Delaware
2,211,063
North Carolina
12,639,018
D.C.
1,577,982
North Dakota
2,330,715
Florida
39,689,318
Ohio
13,783,190
Georgia
14,131,268
Oklahoma
7,018,772
Hawaii
2,121,003
Oregon
5,412,158
Idaho
2,105,904
Pennsylvania
20,875,968
Illinois
21,513,274
Rhode Island
1,932,355
Indiana
9,279,746
South Carolina
7,126,611
Iowa
5,746,375
South Dakota
2,125,438
Kansas
5,620,706
Tennessee
9,373,620
Kentucky
6,184,778
Texas
41,201,621
Louisiana
9,882,360
Utah
3,434,965
A Firm Foundation updates at www.iii.org/firm-foundation/ 41
State
Total, all lines
State
Total, all lines
Maine
1,891,877
Vermont
1,312,704
Maryland
9,546,425
Virginia
11,157,701
Massachusetts
11,979,115
Washington
9,330,640
Michigan
15,460,188
West Virginia
2,786,391
Minnesota
9,725,051
Wisconsin
8,764,621
Mississippi
4,352,852
Wyoming
1,001,059
Missouri
9,376,365
United States
$509,525,311
(1) Before reinsurance transactions, includes some state funds, excludes territories.
Source: SNL Financial LC.
LIFE/HEALTH INSURERS DIRECT PREMIUMS WRITTEN AND ANNUITY CONSIDERATIONS BY
STATE, 2012 (1)
($ millions)
State
Life
insurance
Annuities
Accident
and
health
insurance
(2)
Deposit-
type
contract
funds
Other
considerations
Total
Alabama
$2,012
$2,684
$1,571
$275
$422
$6,965
Alaska
354
378
325
29
169
1,255
Arizona
2,037
4,644
3,633
423
1,315
12,052
Arkansas
1,024
1,467
1,247
94
231
4,063
California
14,411
21,914
13,313
2,366
6,973
58,978
Colorado
2,174
4,812
3,392
756
798
11,932
Connecticut
2,466
4,319
2,525
7,601
1,736
18,647
Delaware
1,265
2,600
459
31,505
222
36,050
D.C.
378
579
618
209
732
2,517
Florida
8,011
19,228
11,575
1,144
3,922
43,880
Georgia
4,364
5,363
6,179
924
1,853
18,685
Hawaii
660
1,237
907
96
397
3,297
Idaho
485
904
603
54
210
2,256
Illinois
6,342
9,736
6,228
1,618
2,918
26,842
Indiana
2,593
6,411
3,919
714
872
14,509
Iowa
1,716
2,737
1,484
8,346
2,800
17,084
Kansas
1,295
2,357
3,323
460
384
7,820
Kentucky
1,490
2,271
2,416
273
1,759
8,210
Louisiana
2,100
3,329
1,997
241
552
8,219
Maine
433
1,162
877
61
362
2,895
Maryland
2,825
5,304
2,920
1,045
1,305
13,399
Massachusetts
4,898
7,338
2,871
1,132
4,702
20,941
Michigan
3,901
20,347
3,917
1,043
1,542
30,750
Minnesota
3,734
4,516
1,870
702
2,154
12,976
Mississippi
1,130
1,394
1,882
116
167
4,689
Missouri
2,493
6,627
3,717
723
1,023
14,583
A Firm Foundation updates at www.iii.org/firm-foundation/ 42
State
Life
insurance
Annuities
Accident
and
health
insurance
(2)
Deposit-
type
contract
funds
Other
considerations
Total
Montana
321
504
468
51
133
1,476
Nebraska
980
1,574
1,223
470
334
4,582
Nevada
832
1,458
1,048
249
307
3,894
New Hampshire
616
1,562
634
130
275
3,218
New Jersey
6,054
11,393
5,384
3,140
2,118
28,090
New Mexico
619
949
914
107
345
2,933
New York
10,992
19,352
7,339
29,325
12,886
79,894
North Carolina
4,313
6,888
4,950
1,006
3,697
20,854
North Dakota
342
561
326
47
109
1,385
Ohio
4,895
11,296
8,142
2,938
2,212
29,484
Oklahoma
1,308
1,976
1,846
183
367
5,680
Oregon
1,132
2,326
1,805
235
1,185
6,682
Pennsylvania
6,226
12,678
5,679
2,982
11,893
39,459
Rhode Island
460
1,133
708
120
236
2,657
South Carolina
1,902
3,522
2,273
222
366
8,285
South Dakota
584
556
426
51
80
1,698
Tennessee
2,667
4,739
2,959
386
1,237
11,988
Texas
9,916
15,671
14,824
1,375
3,123
44,908
Utah
1,285
1,805
1,063
221
452
4,825
Vermont
238
538
323
65
306
1,470
Virginia
3,898
6,417
4,341
789
1,530
16,975
Washington
2,211
4,068
2,789
337
1,291
10,697
West Virginia
620
1,245
1,306
125
202
3,498
Wisconsin
2,412
5,146
4,414
698
1,102
13,772
Wyoming
266
374
358
33
54
1,086
United States (3)
$139,680
$261,389
$159,316
$107,237
$85,361
$752,984
(1) Direct premiums written before reinsurance transactions, excludes state funds.
(2) Excludes accident and health premiums reported on property/casualty and health annual statements.
(3) Excludes territories, dividends and other nonstate specific data.
Source: SNL Financial LC.
DIRECT PREMIUMS WRITTEN, PROPERTY/CASUALTY INSURANCE BY STATE BY LINE, 2012 (1)
($000)
Private passenger auto
Commercial auto
State
Liability
Coll./comp.
Liability
Coll./comp.
Homeowners
multiple peril
Farmowners
multiple
peril
Commercial
multiple
peril
Alabama
$1,265,615
$1,082,754
$272,859
$87,343
$1,477,102
$68,761
$543,313
Alaska
266,282
166,142
50,111
17,537
145,364
517
112,177
Arizona
2,020,692
1,353,227
284,044
74,316
1,278,892
13,929
548,429
A Firm Foundation updates at www.iii.org/firm-foundation/ 43
Private passenger auto
Commercial auto
State
Liability
Coll./comp.
Liability
Coll./comp.
Homeowners
multiple peril
Farmowners
multiple
peril
Commercial
multiple
peril
Arkansas
828,889
673,349
192,700
76,910
744,594
22,779
289,547
California
11,057,548
8,373,663
1,876,315
517,928
7,039,225
204,123
4,236,994
Colorado
1,743,356
1,149,401
288,925
95,837
1,551,677
65,672
631,918
Connecticut
1,547,853
897,962
265,275
61,521
1,221,067
4,680
578,155
Delaware
478,912
197,008
71,974
14,936
206,985
4,162
302,361
D.C.
148,923
125,937
31,986
4,783
136,949
0
149,169
Florida
10,506,792
3,219,585
1,289,026
249,931
8,384,065
24,075
2,046,719
Georgia
3,197,062
2,279,534
547,393
151,302
2,351,304
103,621
874,450
Hawaii
385,625
241,716
73,411
18,399
342,385
437
138,653
Idaho
401,377
270,604
88,764
37,797
272,089
51,211
173,483
Illinois
3,371,657
2,488,635
752,233
226,752
3,013,388
140,250
1,529,375
Indiana
1,683,708
1,186,442
371,220
142,516
1,586,337
171,116
740,062
Iowa
708,187
673,945
204,189
111,584
619,742
149,488
328,802
Kansas
759,608
709,884
156,329
96,248
900,466
182,332
353,614
Kentucky
1,606,967
770,828
250,648
80,847
956,706
148,319
458,920
Louisiana
2,062,534
1,244,963
447,876
95,009
1,684,025
12,212
500,936
Maine
338,483
259,763
81,388
31,656
349,818
3,322
193,805
Maryland
2,391,374
1,512,311
348,429
88,799
1,383,766
23,713
584,067
Massachusetts
2,442,777
1,689,359
494,684
150,823
1,881,522
2,699
999,870
Michigan
4,164,354
2,488,530
472,326
216,866
2,358,473
124,033
964,975
Minnesota
1,671,247
1,167,875
302,099
136,710
1,709,445
119,350
629,418
Mississippi
802,364
634,457
203,111
67,192
841,932
19,555
316,297
Missouri
1,666,658
1,285,276
344,584
131,238
1,649,500
143,332
692,465
Montana
313,387
243,374
83,579
44,643
236,039
56,475
145,910
Nebraska
517,675
427,919
120,707
76,793
505,001
162,263
231,397
Nevada
1,129,523
525,813
157,801
25,608
466,905
7,188
277,286
New Hampshire
364,438
309,624
76,815
27,298
348,781
2,456
205,471
New Jersey
4,626,519
1,959,866
855,345
153,667
2,230,734
2,392
1,284,139
New Mexico
681,259
407,209
114,414
38,587
423,243
23,015
202,607
New York
7,279,224
3,532,137
1,605,042
245,951
4,725,048
36,787
3,310,734
North Carolina
2,635,322
1,924,111
471,347
139,388
2,007,280
52,504
963,011
North Dakota
177,335
204,703
74,060
57,848
160,838
89,839
126,882
Ohio
2,967,832
2,262,431
533,214
182,431
2,424,548
131,315
1,143,286
Oklahoma
1,201,603
902,054
275,630
107,384
1,275,407
120,841
460,456
Oregon
1,447,171
620,435
201,834
54,745
669,255
57,393
412,247
Pennsylvania
4,280,658
2,913,057
843,699
296,835
2,859,691
90,056
1,587,119
Rhode Island
474,502
225,885
67,729
15,967
321,117
146
143,436
South Carolina
1,685,500
1,013,409
228,016
67,643
1,382,887
9,068
445,753
South Dakota
200,122
206,666
57,391
35,811
170,634
89,331
120,300
Tennessee
1,727,142
1,304,877
334,226
136,936
1,610,676
130,176
614,966
Texas
8,031,494
6,187,320
1,647,730
522,803
6,407,188
207,509
2,333,801
A Firm Foundation updates at www.iii.org/firm-foundation/ 44
Private passenger auto
Commercial auto
State
Liability
Coll./comp.
Liability
Coll./comp.
Homeowners
multiple peril
Farmowners
multiple
peril
Commercial
multiple
peril
Utah
840,109
491,798
166,566
59,255
418,067
10,957
227,962
Vermont
164,612
147,183
41,755
17,407
172,323
12,909
160,811
Virginia
2,509,355
1,835,797
391,496
114,978
1,867,119
65,528
699,902
Washington
2,564,536
1,258,007
343,641
94,405
1,401,717
61,782
711,779
West Virginia
668,818
464,641
112,237
36,339
372,107
12,114
184,376
Wisconsin
1,400,506
1,030,305
329,668
129,870
1,143,162
144,569
600,536
Wyoming
162,503
166,815
50,125
26,586
146,260
28,847
87,986
United States
$105,569,989
$66,708,587
$18,945,968
$5,693,956
$77,832,844
$3,409,147
$35,600,131
(1) Includes some state funds.
Source: SNL Financial LC.
DIRECT PREMIUMS WRITTEN, PROPERTY/CASUALTY INSURANCE BY STATE BY LINE, 2012 (1)
(CONT'D)
($000)
State
Workers
compensation
Excess
workers
compensation
Medical
malpractice
Products
liability
Other
liability
Fire
Allied
lines
Alabama
$316,121
$19,271
$131,536
$39,971
$507,233
$220,302
$175,996
Alaska
298,855
4,762
22,093
5,450
144,588
57,945
32,576
Arizona
649,079
9,943
227,340
30,393
639,142
136,372
106,523
Arkansas
240,972
6,397
66,621
18,426
290,728
150,610
120,103
California
9,003,018
181,175
771,226
414,016
5,960,762
1,285,100
756,691
Colorado
709,503
10,920
165,411
59,322
880,026
142,486
151,859
Connecticut
737,326
22,193
172,802
48,675
853,958
132,374
109,365
Delaware
150,595
1,665
38,710
10,202
261,740
28,493
20,324
D.C.
142,130
2,138
36,631
4,927
340,990
32,173
24,968
Florida
2,030,591
56,709
543,580
156,491
2,625,133
1,522,536
3,030,325
Georgia
1,132,298
33,132
284,826
72,126
1,158,170
334,768
220,966
Hawaii
200,925
4,492
29,701
9,385
244,823
85,677
102,714
Idaho
300,401
1,251
30,881
9,143
143,735
29,849
41,479
Illinois
2,600,631
47,660
569,046
130,752
2,827,459
414,102
385,998
Indiana
782,614
12,614
118,487
56,741
733,687
245,232
160,596
Iowa
674,002
9,359
73,550
36,648
486,069
99,162
219,538
Kansas
447,077
9,487
68,131
35,198
366,230
103,051
182,798
Kentucky
471,251
16,369
127,763
27,335
377,411
121,696
93,019
Louisiana
794,850
42,012
101,288
45,624
755,342
343,236
433,411
Maine
197,684
2,777
46,769
7,019
135,602
43,406
31,993
Maryland
834,608
9,477
283,060
46,942
872,626
162,590
113,285
Massachusetts
961,948
20,473
307,493
84,354
1,454,364
298,556
194,532
A Firm Foundation updates at www.iii.org/firm-foundation/ 45
State
Workers
compensation
Excess
workers
compensation
Medical
malpractice
Products
liability
Other
liability
Fire
Allied
lines
Michigan
1,061,373
34,060
201,191
88,849
1,086,389
327,723
157,799
Minnesota
835,540
-330
84,934
83,560
902,804
178,185
296,868
Mississippi
298,388
12,073
52,333
17,534
268,445
135,358
130,590
Missouri
769,306
22,661
161,399
45,634
840,294
225,519
172,167
Montana
279,314
5,686
41,492
9,085
141,094
29,414
30,569
Nebraska
341,023
5,290
35,474
21,690
294,693
53,577
237,974
Nevada
269,297
19,416
81,704
24,875
308,984
102,637
77,860
New Hampshire
252,821
2,815
39,146
11,527
155,494
36,915
26,280
New Jersey
1,927,334
24,099
485,351
176,785
2,006,481
377,147
256,475
New Mexico
251,701
6,167
49,299
10,483
182,823
43,699
35,582
New York
4,754,647
49,097
1,672,175
193,207
5,512,444
759,213
501,327
North Carolina
1,243,533
25,746
210,371
85,742
933,886
289,281
250,964
North Dakota
5,951
1
11,265
14,256
145,882
27,363
129,578
Ohio
32,327
68,215
323,354
108,708
1,351,750
403,881
233,300
Oklahoma
934,179
29,317
114,630
46,839
448,859
164,734
167,698
Oregon
630,397
12,709
93,013
33,245
415,264
97,995
69,232
Pennsylvania
2,528,540
38,235
705,829
144,278
2,177,005
438,051
275,352
Rhode Island
170,943
1,737
42,721
12,510
174,971
46,662
34,554
South Carolina
640,321
8,324
61,701
35,715
380,476
188,425
186,526
South Dakota
164,732
1,250
19,268
9,574
95,836
21,400
73,186
Tennessee
833,060
17,619
233,482
50,118
981,182
258,545
157,694
Texas
2,445,019
29,416
324,832
284,903
3,891,462
1,666,672
1,670,818
Utah
348,839
4,216
64,046
29,543
300,614
71,440
39,572
Vermont
172,728
1,096
20,682
6,818
95,210
24,780
13,632
Virginia
881,230
21,244
208,587
50,520
1,004,795
222,215
161,645
Washington
30,315
24,603
201,288
46,326
878,972
221,595
145,395
West Virginia
374,625
3,498
81,044
13,493
170,374
66,536
35,919
Wisconsin
1,725,006
7,610
86,781
70,989
823,368
157,331
135,263
Wyoming
10,355
146
24,532
6,860
90,107
30,938
23,151
United States
$47,889,326
$1,000,293
$9,948,872
$3,082,806
$48,119,773
$12,656,945
$12,436,026
(1) Includes some state funds.
Source: SNL Financial LC.
DIRECT PREMIUMS WRITTEN, PROPERTY/CASUALTY INSURANCE BY STATE BY LINE, 2012 (1)
(CONT'D)
($000)
State
Inland
marine
Ocean
marine
Surety
Fidelity
Burglary
and theft
Boiler and
machinery
Financial
guaranty
Alabama
$223,253
$33,333
$61,406
$12,968
$2,020
$26,227
$940
Alaska
222,045
35,186
29,140
1,997
387
8,493
365
Arizona
231,205
14,357
91,505
11,300
2,651
18,740
1,056
A Firm Foundation updates at www.iii.org/firm-foundation/ 46
State
Inland
marine
Ocean
marine
Surety
Fidelity
Burglary
and theft
Boiler and
machinery
Financial
guaranty
Arkansas
169,938
15,854
37,949
14,369
1,563
16,159
2,889
California
2,053,105
244,017
678,465
113,805
25,110
131,843
36,698
Colorado
239,380
12,127
99,660
20,011
3,396
20,433
4,919
Connecticut
243,015
49,374
56,293
28,731
5,284
17,700
3,286
Delaware
55,113
6,872
17,931
3,929
1,868
3,848
21,010
D.C.
88,150
2,274
97,463
14,219
2,620
4,219
178
Florida
905,674
284,666
250,076
57,260
13,420
62,891
6,850
Georgia
423,586
36,781
119,553
31,687
5,915
32,858
4,738
Hawaii
60,401
13,950
41,744
4,768
546
5,595
4,516
Idaho
59,013
3,865
19,252
2,594
504
7,090
130
Illinois
561,829
83,114
182,415
58,233
11,910
57,691
9,801
Indiana
241,664
19,677
67,355
16,986
3,033
41,624
1,725
Iowa
174,437
7,241
42,701
14,561
1,858
20,928
3,437
Kansas
145,530
7,907
42,969
11,102
1,797
17,763
1,343
Kentucky
209,766
20,455
75,822
9,418
1,364
21,359
753
Louisiana
321,753
214,196
106,303
12,799
2,863
27,384
6,340
Maine
54,890
23,267
15,389
3,621
552
7,816
520
Maryland
266,045
88,193
144,624
24,386
3,644
19,171
7,179
Massachusetts
354,356
83,986
122,823
38,539
10,479
32,992
9,052
Michigan
359,979
43,832
75,144
32,971
5,665
50,516
4,442
Minnesota
242,641
24,603
71,371
27,249
4,458
30,600
18,853
Mississippi
144,174
19,915
44,097
8,029
1,553
13,490
1,547
Missouri
256,831
27,855
73,875
21,213
4,031
24,377
4,018
Montana
54,700
2,908
26,337
3,141
428
4,846
170
Nebraska
114,304
4,035
34,042
7,487
1,100
12,037
367
Nevada
110,934
7,068
57,830
6,825
1,522
10,025
1,411
New Hampshire
58,620
11,367
15,178
3,179
689
5,367
705
New Jersey
435,714
131,395
143,259
43,368
8,327
41,077
16,502
New Mexico
80,610
1,501
38,768
3,906
702
6,396
411
New York
1,150,991
447,849
308,262
137,889
24,209
99,538
468,320
North Carolina
412,494
35,128
123,967
27,625
4,210
33,706
2,217
North Dakota
59,705
1,202
20,801
2,695
325
8,272
0
Ohio
448,106
43,363
120,435
39,019
9,287
53,771
5,201
Oklahoma
195,095
21,015
61,811
10,002
1,991
19,376
683
Oregon
171,826
28,451
56,703
9,615
2,014
16,020
1,345
Pennsylvania
537,277
45,733
196,613
50,306
8,994
61,991
18,802
Rhode Island
62,610
25,697
14,224
4,850
682
4,771
761
South Carolina
239,220
24,581
64,374
9,668
1,891
18,363
1,962
South Dakota
43,755
792
32,594
3,300
331
5,339
12
Tennessee
285,409
57,196
88,807
17,045
5,440
25,221
248
Texas
1,449,673
336,864
420,633
71,949
21,214
147,847
29,617
Utah
94,847
6,450
43,129
6,341
1,227
8,653
597
Vermont
28,188
10,562
7,975
4,001
274
3,780
1,423
A Firm Foundation updates at www.iii.org/firm-foundation/ 47
State
Inland
marine
Ocean
marine
Surety
Fidelity
Burglary
and theft
Boiler and
machinery
Financial
guaranty
Virginia
324,835
53,462
166,801
31,644
6,846
27,347
682
Washington
312,737
120,800
132,098
16,465
3,913
32,593
1,071
West Virginia
63,313
3,513
35,918
3,956
487
7,883
329
Wisconsin
208,433
30,118
48,450
21,032
3,787
35,333
1,935
Wyoming
39,941
799
27,492
1,421
257
8,065
0
United States
$15,291,110
$2,868,744
$4,951,823
$1,133,474
$228,636
$1,419,423
$711,356
(1) Includes some state funds.
Source: SNL Financial LC.
DIRECT PREMIUMS WRITTEN, PROPERTY/CASUALTY INSURANCE BY STATE BY LINE, 2012 (1)
(CONT'D)
($000)
State
Aircraft
Earthquake
Federal
flood
Credit
Warranty
Accident
and
health
Multiple
peril crop
Alabama
$21,005
$8,954
$27,682
$17,960
$7,638
$65,681
$73,474
Alaska
32,115
25,328
2,099
1,513
4,544
11,129
94
Arizona
56,283
8,993
16,626
14,777
36,803
89,913
21,351
Arkansas
20,365
27,038
10,604
17,792
4,739
40,096
135,211
California
154,785
1,629,422
163,313
101,255
113,997
469,021
276,675
Colorado
41,818
10,316
12,557
12,716
31,650
96,273
239,131
Connecticut
42,325
7,089
41,841
27,543
9,526
45,009
6,914
Delaware
14,840
1,148
14,585
18,082
3,250
224,738
15,708
D.C.
2,710
2,360
1,013
6,004
26
134,630
0
Florida
111,570
32,322
864,158
373,270
328,188
260,904
122,109
Georgia
79,913
16,369
53,068
42,096
22,773
167,173
151,424
Hawaii
12,442
10,513
30,648
7,178
3,794
21,089
1,893
Idaho
12,852
2,997
3,656
2,499
11,311
19,176
84,785
Illinois
84,032
64,022
27,627
93,515
469,914
310,985
764,206
Indiana
24,354
34,901
17,630
27,641
40,838
211,141
429,868
Iowa
12,018
5,091
10,586
9,353
3,537
81,335
903,351
Kansas
20,717
7,339
6,956
14,897
105,245
72,384
745,223
Kentucky
7,445
40,294
14,722
22,278
10,671
59,881
140,986
Louisiana
64,285
9,565
246,987
32,637
12,465
67,106
98,450
Maine
3,791
1,640
7,657
4,829
4,319
11,652
10,210
Maryland
19,094
10,206
34,921
19,743
13,887
80,651
40,983
Massachusetts
15,469
17,480
55,827
31,454
11,525
83,766
5,576
Michigan
36,254
8,375
16,035
63,140
508,505
168,245
202,015
Minnesota
28,887
6,075
6,601
19,471
16,479
139,435
832,811
Mississippi
11,641
17,214
32,144
16,657
5,460
61,575
135,369
Missouri
25,229
89,924
16,639
30,041
18,264
169,989
363,657
Montana
9,202
4,213
2,759
4,479
1,793
24,027
195,505
A Firm Foundation updates at www.iii.org/firm-foundation/ 48
State
Aircraft
Earthquake
Federal
flood
Credit
Warranty
Accident
and
health
Multiple
peril crop
Nebraska
10,912
2,669
7,441
4,765
3,828
68,175
689,071
Nevada
29,553
19,641
7,122
15,370
5,544
34,219
4,986
New Hampshire
7,605
2,573
7,166
7,746
8,272
14,195
947
New Jersey
30,552
15,209
190,382
103,340
21,683
123,700
10,938
New Mexico
7,541
2,330
9,392
6,958
5,831
27,635
36,806
New York
52,993
40,883
136,136
162,128
69,386
388,495
53,427
North Carolina
29,752
11,750
86,117
56,054
33,363
177,199
208,247
North Dakota
7,180
824
6,087
1,482
622
14,472
973,091
Ohio
52,483
29,533
25,550
63,959
17,507
193,666
314,160
Oklahoma
18,216
11,679
8,739
20,475
17,591
54,040
271,888
Oregon
33,194
58,738
19,560
22,975
7,032
57,160
45,528
Pennsylvania
33,632
16,259
53,196
65,180
54,996
290,518
68,567
Rhode Island
14,386
1,441
18,865
4,094
995
24,906
661
South Carolina
11,420
35,533
107,685
29,558
5,140
77,842
78,880
South Dakota
6,058
689
3,379
2,113
729
30,550
719,754
Tennessee
46,250
74,710
17,610
34,265
31,077
101,578
106,567
Texas
183,034
40,849
285,558
274,602
204,684
531,197
1,050,114
Utah
26,159
35,426
2,238
10,987
6,781
53,300
4,695
Vermont
2,540
28,329
4,341
7,876
2,038
6,016
3,590
Virginia
44,147
15,807
61,317
47,468
18,871
104,683
66,529
Washington
36,163
151,438
28,016
29,867
35,384
97,784
210,476
West Virginia
3,532
1,933
12,989
5,747
3,467
28,896
2,622
Wisconsin
18,431
6,102
9,432
39,719
21,315
163,883
275,754
Wyoming
6,749
3,308
1,542
1,403
3,302
17,460
21,496
United States
$1,677,926
$2,706,844
$2,848,803
$2,050,953
$2,380,573
$5,868,574
$11,215,772
(1) Includes some state funds.
Source: SNL Financial LC.
DIRECT PREMIUMS WRITTEN, PROPERTY/CASUALTY INSURANCE BY STATE BY LINE, 2012 (1)
(CONT'D)
($000)
State
Mortgage
guaranty
Misc.
Alabama
$66,588
$24,226
Alaska
14,452
1,179
Arizona
83,484
17,408
Arkansas
32,516
7,152
California
328,900
65,944
Colorado
104,519
10,029
Connecticut
54,720
4,688
Delaware
19,131
943
A Firm Foundation updates at www.iii.org/firm-foundation/ 49
State
Mortgage
guaranty
Misc.
D.C.
39,139
1,275
Florida
237,607
92,793
Georgia
165,795
36,587
Hawaii
19,489
4,096
Idaho
22,408
1,709
Illinois
208,593
27,451
Indiana
101,670
8,267
Iowa
56,774
4,900
Kansas
44,425
4,657
Kentucky
37,258
4,224
Louisiana
59,713
36,195
Maine
16,806
1,432
Maryland
110,726
7,923
Massachusetts
112,148
10,188
Michigan
119,109
19,021
Minnesota
119,075
18,735
Mississippi
27,706
12,653
Missouri
88,899
11,490
Montana
11,472
2,648
Nebraska
27,225
5,645
Nevada
32,079
2,695
New Hampshire
24,805
2,723
New Jersey
145,035
19,442
New Mexico
25,703
8,784
New York
177,256
34,127
North Carolina
143,476
21,229
North Dakota
7,006
1,151
Ohio
160,970
39,586
Oklahoma
43,678
12,861
Oregon
54,581
12,483
Pennsylvania
176,256
19,242
Rhode Island
15,013
5,521
South Carolina
76,740
9,989
South Dakota
9,593
948
Tennessee
79,355
12,145
Texas
345,558
157,264
Utah
57,856
3,297
Vermont
9,173
140,652
Virginia
136,476
16,377
Washington
121,202
16,273
West Virginia
13,368
2,318
Wisconsin
87,129
8,804
Wyoming
11,839
772
A Firm Foundation updates at www.iii.org/firm-foundation/ 50
State
Mortgage
guaranty
Misc.
United States
$4,284,494
$992,141
(1) Includes some state funds.
Source: SNL Financial LC.
Surplus Lines
SURPLUS LINES BY STATE
The surplus lines market, a group of highly specialized insurers exists to provide coverage that is
not available through licensed insurers in the standard insurance market. Each state has surplus
lines regulations and each surplus lines company is overseen for solvency by its home state. A
number of states maintain lists of eligible surplus lines companies and some keep a list of those
that are not eligible to do business in that state. In addition, depending on the state, the surplus
lines agent or broker, who must be licensed, is responsible for checking the eligibility of the
company.
For the many thousands of businesses that rely on some level of surplus line protection to keep
their doors open, surplus lines is an important segment of the market. In 2012, surplus lines
accounted for 13.3 percent of the U.S. commercial lines market, up from 11.1 percent in 2002
and 5.3 percent in 1992, according to September, 2013 A.M. Best report.
A Firm Foundation updates at www.iii.org/firm-foundation/ 51
TOP TEN STATES BY GROSS SURPLUS LINES PREMIUMS, 2011-2012
($ millions)
Rank
State
2012
2011
1
California
$5,057.1
$4,998.7
2
Texas
4,339.3
4,220.2
3
Florida
4,204.7
3,730.7
4
New York (1)
2,625.6
2,883.1
5
Louisiana
1,277.2
1,255.6
6
New Jersey (2)
1,250.0
1,096.1
7
Illinois
1,075.4
1,004.6
8
Pennsylvania (3)
956.7
870.4
9
Georgia
802.5
775.7
10
Washington
708.6
592.3
(1) Adjusted to remove late-filled premiums.
(2) New Jersey Division of Insurance estimate.
(3) Pennsylvania Insurance Department estimate.
Source: Business Insurance, September 23, 2013.
GROSS SURPLUS LINES PREMIUMS BY STATE, 2012 (1)
($ millions)
State
Total all lines
Alabama
$452.1
Alaska
107.5
Arizona
339.8
Arkansas
193.6
California
5,057.1
Colorado
465.5
Connecticut
453.8
Delaware
51.9
D.C.
171.5
Florida
4,204.7
Georgia
802.5
Hawaii
184.6
Idaho
60.2
Illinois
1,075.4
Indiana
391.4
Iowa
210.3
Kansas
169.5
Kentucky
143.0
Louisiana
1,277.2
Maine
70.1
Maryland
387.1
Massachusetts
659.3
A Firm Foundation updates at www.iii.org/firm-foundation/ 52
State
Total all lines
Michigan
548.8
Minnesota
356.4
Mississippi
307.2
Missouri
540.8
Montana
70.1
Nebraska
132.5
Nevada
232.0
New Hampshire
75.4
New Jersey
1,250.0 (1)
New Mexico
9.9 (2)
New York
2,625.6 (3)
North Carolina
575.8
North Dakota
84.3
Ohio
648.7
Oklahoma
282.5
Oregon
226.3
Pennsylvania
956.7 (4)
Rhode Island
21.3
South Carolina
463.4
South Dakota
41.7
Tennessee
510.1
Texas
4,339.3
Utah
170.3
Vermont
49.8
Virginia
605.4
Washington
708.6
West Virginia
82.3
Wisconsin
268.2
Wyoming
60.2
United States
$28,329.2
(1) New Jersey Division of Insurance estimate.
(2) Business Insurance estimate.
(3) Adjusted to remove late-filed premiums.
(4) Pennsylvania Insurance Department estimate.
Source: Business Insurance, September 23, 2013.
Gross State Product
GROSS STATE PRODUCT (GSP), INSURANCE CARRIERS AND RELATED ACTIVITIES, 2010-2011
($ millions)
State
2010
2011
As a percent of 2011 total GSP
Alabama
$3,371
$3,692
2.07%
Alaska
284
290
0.57
A Firm Foundation updates at www.iii.org/firm-foundation/ 53
State
2010
2011
As a percent of 2011 total GSP
Arizona
7,114
7,600
2.97
Arkansas
1,494
1,672
1.57
California
29,469
30,275
1.59
Colorado
5,598
5,770
2.18
Connecticut
20,662
19,316
8.57
Delaware
7,331
8,229
12.78
D.C.
1,051
1,149
1.07
Florida
17,541
18,216
2.44
Georgia
8,642
8,869
2.12
Hawaii
1,100
1,171
1.67
Idaho
903
919
1.61
Illinois
24,891
24,933
3.72
Indiana
9,123
9,315
3.28
Iowa
10,553
11,342
7.77
Kansas
2,973
3,322
2.46
Kentucky
3,550
3,729
2.22
Louisiana
3,566
3,802
1.60
Maine
1,598
1,628
3.10
Maryland
6,617
6,862
2.25
Massachusetts
11,488
12,120
3.12
Michigan
12,191
11,623
3.02
Minnesota
10,921
11,412
4.08
Mississippi
1,489
1,524
1.56
Missouri
6,268
6,484
2.60
Montana
609
627
1.61
Nebraska
4,491
4,418
4.59
Nevada
1,500
1,509
1.17
New Hampshire
2,383
2,648
4.18
New Jersey
13,325
14,204
2.88
New Mexico
1,089
1,093
1.37
New York
37,783
41,636
3.56
North Carolina
6,330
6,315
1.45
North Dakota
847
902
2.26
Ohio
16,336
16,982
3.46
Oklahoma
2,455
2,482
1.59
Oregon
3,431
3,480
1.84
Pennsylvania
18,966
20,041
3.45
Rhode Island
1,935
1,802
3.65
South Carolina
3,541
3,505
2.08
South Dakota
797
822
1.97
Tennessee
6,383
6,546
2.48
Texas
24,087
25,067
1.90
Utah
1,936
2,069
1.66
Vermont
741
780
2.94
A Firm Foundation updates at www.iii.org/firm-foundation/ 54
State
2010
2011
As a percent of 2011 total GSP
Virginia
5,618
5,827
1.34
Washington
6,219
6,069
1.70
West Virginia
1,062
1,073
1.62
Wisconsin
11,928
12,223
4.82
Wyoming
233
243
0.64
United States
$383,815
$397,629
2.66%
Source: U.S. Department of Commerce, Bureau of Economic Analysis.
State Taxes
All insurance companies pay a state tax based on their premiums. Other payments are made to
states for licenses and fees, income and property taxes, sales and use taxes, unemployment
compensation taxes and franchise taxes.
PREMIUM TAXES BY STATE, PROPERTY/CASUALTY AND LIFE/HEALTH INSURANCE, 2012
($000)
State
Amount
State
Amount
Alabama
$278,242
Montana
$70,779
Alaska
61,684
Nebraska
46,482
Arizona
426,497
Nevada
237,861
Arkansas
156,828
New Hampshire
73,808
California
2,416,073
New Jersey
532,307
Colorado
197,914
New Mexico
118,296
Connecticut
205,587
New York
1,339,033
Delaware
91,763
North Carolina
479,756
Florida
704,760
North Dakota
42,819
Georgia
309,193
Ohio
477,982
Hawaii
122,401
Oklahoma
228,915
Idaho
69,722
Oregon
100,821
Illinois
369,117
Pennsylvania
790,781
Indiana
203,123
Rhode Island
86,005
Iowa
101,406
South Carolina
144,072
Kansas
166,405
South Dakota
67,000
Kentucky
133,070
Tennessee
639,222
Louisiana
357,043
Texas
1,508,157
Maine
108,605
Utah
104,443
Maryland
428,024
Vermont
59,000
Massachusetts
342,201
Virginia
390,950
Michigan
298,235
Washington
430,052
Minnesota
360,794
West Virginia
144,786
Mississippi
189,373
Wisconsin
152,188
Missouri
270,169
Wyoming
26,056
A Firm Foundation updates at www.iii.org/firm-foundation/ 55
State
Amount
State
Amount
United States
$16,659,800
Source: U.S. Department of Commerce, Bureau of the Census.
Insurance Companies by State
DOMESTIC INSURANCE COMPANIES BY STATE, PROPERTY/CASUALTY AND LIFE/ANNUITIES,
2012
State
Property/
casualty
Life/
annuities
State
Property/
casualty
Life/
annuities
Alabama
18
6
Montana
3
1
Alaska
5
0
Nebraska
32
30
Arizona
45
35
Nevada
11
3
Arkansas
12
31
New Hampshire
53
2
California
111
16
New Jersey
69
2
Colorado
13
9
New Mexico
11
2
Connecticut
70
28
New York
210
79
Delaware
95
33
North Carolina
67
5
D.C.
5
2
North Dakota
16
4
Florida
120
11
Ohio
133
38
Georgia
31
15
Oklahoma
34
26
Hawaii
17
4
Oregon
15
4
Idaho
7
1
Pennsylvania
181
27
Illinois
194
56
Rhode Island
24
1
Indiana
71
27
South Carolina
24
9
Iowa
68
30
South Dakota
17
2
Kansas
28
12
Tennessee
16
12
Kentucky
9
7
Texas
217
129
Louisiana
34
40
Utah
11
16
Maine
15
1
Vermont
14
2
Maryland
36
6
Virginia
18
4
Massachusetts
55
17
Washington
12
9
Michigan
73
24
West Virginia
17
0
Minnesota
39
12
Wisconsin
175
21
Mississippi
15
17
Wyoming
1
1
Missouri
49
28
United States (1)
2,616
897
(1) Excludes territories, health insurers, risk retention groups, fraternals, title and other insurers.
Source: Insurance Department Resources Report, 2012, published by the National Association of Insurance Commissioners (NAIC).
Reprinted with permission. Further reprint or redistribution strictly prohibited without written permission of NAIC.
LICENSED INSURERS BY STATE
An insurance company is said to be “domiciled” in the state that issued its primary license; it is
“domestic” in that state. Once licensed in one state, it may seek licenses in other states as a
“foreign” insurer (referred to as “licensed out-of-state insurers” in the chart below). An insurer
incorporated in a foreign country is called an “alien” insurer in the U.S. states in which it is
A Firm Foundation updates at www.iii.org/firm-foundation/ 56
licensed (not included in the chart). The chart also shows self-insured groups and risk
purchasing groups (organizations consisting of firms engaged in similar businesses that band
together to purchase commercial insurance). Many insurers do business outside their state of
domicile. For example, there are only 40 insurance companies domiciled in Alabama, but 1,381
insurers have licenses to do business in the state.
REGULATED INSURANCE ENTITIES BY STATE, 2011
State
Domestic
insurers (1)
Licensed
out-of-state
insurers (2)
Chartered self-
insured groups
or pools
Chartered
purchasing
groups
All companies
doing business
in state (3)
Alabama
40
1,381
0
7
1,428
Alaska
7
768
0
2
777
Arizona
225
1,572
23
23
1,843
Arkansas
59
1,472
0
1
1,532
California
151
1,147
0
50
1,348
Colorado
50
1,445
9
39
1,543
Connecticut
109
1,209
0
23
1,341
D.C.
49
1,319
0
19
1,387
Delaware
136
1,318
0
135
1,589
Florida
501
1,628
12
49
2,190
Georgia
104
1,614
59
0
1,777
Hawaii
45
1,040
2
7
1,094
Idaho
15
1,433
12
3
1,463
Illinois
358
1,403
7
140
1,908
Indiana
168
1,628
10
16
1,822
Iowa
213
1,406
2
6
1,627
Kansas
45
1,635
15
15
1,710
Kentucky
34
1,535
13
11
1,593
Louisiana
120
1,488
27
2
1,637
Maine
25
1,065
19
1
1,110
Maryland
66
1,465
6
11
1,548
Massachusetts
88
1,234
22
11
1,355
Michigan
147
1,556
18
5
1,726
Minnesota
159
1,334
19
16
1,528
Mississippi
41
1,464
0
2
1,507
Missouri
189
1,510
9
9
1,717
Montana
44
1,398
0
9
1,451
Nebraska
97
1,451
7
4
1,559
Nevada
62
1,495
9
4
1,570
New Hampshire
52
1,001
0
6
1,059
New Jersey
103
1,283
47
36
1,469
New Mexico
23
1,390
4
0
1,417
New York
616
1,118
13
61
1,808
North Carolina
83
1,403
4
0
1,490
North Dakota
35
1,380
2
2
1,419
Ohio
253
1,498
0
23
1,774
A Firm Foundation updates at www.iii.org/firm-foundation/ 57
State
Domestic
insurers (1)
Licensed
out-of-state
insurers (2)
Chartered self-
insured groups
or pools
Chartered
purchasing
groups
All companies
doing business
in state (3)
Oklahoma
80
1,501
4
3
1,588
Oregon
40
1,486
0
6
1,532
Pennsylvania
271
1,546
22
27
1,866
Rhode Island
32
1,257
1
25
1,315
South Carolina
80
1,670
0
10
1,760
South Dakota
40
1,378
0
0
1,418
Tennessee
56
1,537
8
6
1,607
Texas
430
1,554
7
62
2,053
Utah
42
1,635
1
7
1,685
Vermont
113
1,536
0
7
1,656
Virginia
63
1,652
14
10
1,739
Washington
48
1,419
0
14
1,481
West Virginia
24
1,424
1
2
1,451
Wisconsin
390
1,673
0
6
2,069
Wyoming
5
1,400
0
1
1,406
Total U.S. (4)
6,226
440
934
(1) Insurers that are domiciled in the state. Includes property/casualty, life/annuities, health, fraternal, title, risk retention groups and
"other".
(2) This category is comprised of insurers designated by the NAIC as a "foreign insurer"—i.e., an insurer whose state of domicile is
other than the state in which it is writing business. There is no total in this column to avoid double counting—i.e., insurers are only
included in the figures for states in which they are domiciled.
(3) No totals shown, so as to avoid double counting. Totals reflect insurers physically located in the state.
(4) Totals include U.S. territories and possessions.
Source: Insurance Department Resources Report, 2011, published by the National Association of Insurance Commissioners (NAIC).
Reprinted with permission. Further reprint or redistribution strictly prohibited without written permission of NAIC.
Catastrophes by State
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. Information on catastrophes, including earthquakes, terrorism, hurricanes,
wildfires and tornadoes is provided in the “Defraying the Costs of Disasters section of the Firm
Foundation (see chapter navigation on the left). In addition, the section below provides state
catastrophe rankings, followed by information on the following types of disasters:
Hurricanes
Tornadoes
Wildfires
STATE CATASTROPHE RANKINGS
ISO defines a catastrophe as an event that causes $25 million or more in insured property losses
and affects a significant number of property/casualty policyholders and insurers. The estimates
in the following charts represent anticipated insured losses from catastrophes on an industrywide
basis, reflecting the total net insurance payment for personal and commercial property lines of
insurance covering fixed property, vehicles, boats, related-property items, business interruption
and additional living expenses. They exclude loss-adjustment expenses.
A Firm Foundation updates at www.iii.org/firm-foundation/ 58
TOP TEN STATES BY INSURED CATASTROPHE LOSSES, 2013 (1)
($ millions)
Rank
State
Estimated insured
losses
Number of
events
1
Oklahoma
$1,995
6
2
Texas
1,540
10
3
Illinois
1,190
6
4
Minnesota
909
2
5
Colorado
907
4
6
Mississippi
805
1
7
Nebraska
773
1
8
Georgia
762
4
9
Indiana
677
7
10
Louisiana
593
2
(1) Includes catastrophes causing insured property losses of at least $25 million in 1997 dollars and affecting a significant number of
policyholders and insurers. Excludes losses covered by the federally administered National Flood Insurance Program.
Source: Property Claim Services (PCS), a division of Verisk Analytics.
THE TEN MOST COSTLY HURRICANES IN THE UNITED STATES (1)
($ millions)
Estimated insured loss (2)
Rank
Date
Location
Hurricane
Dollars when
occurred
In 2012
dollars (3)
1
Aug. 25-30, 2005
AL, FL, GA, LA, MS, TN
Hurricane Katrina
$41,100
$47,424
2
Aug. 24-26, 1992
FL, LA
Hurricane Andrew
15,500
23,349
3
Oct. 28-31, 2012
CT, DC, DE, MA, MD,
ME, NC, NH,
NJ, NY, OH, PA, RI,
VA, VT, WV
Hurricane Sandy
18,750
18,750
4
Sep. 12-14, 2008
AR, IL, IN, KY, LA, MO,
OH, PA, TX
Hurricane Ike
12,500
13,283
5
Oct. 24, 2005
FL
Hurricane Wilma
10,300
11,885
6
Aug. 13-14, 2004
FL, NC, SC
Hurricane Charley
7,475
8,912
7
Sep. 15-21, 2004
AL, DE, FL, GA, LA,
MD, MS, NC, NJ, NY,
OH, PA, TN, VA, WV
Hurricane Ivan
7,110
8,476
8
Sep. 17-22, 1989
GA, NC, PR, SC, U.S.
Virgin Islands, VA
Hurricane Hugo
4,195
6,957
9
Sep. 20-26, 2005
AL, AR, FL, LA, MS,
TN, TX
Hurricane Rita
5,627
6,493
10
Sep. 3-9, 2004
FL, GA, NC, NY, SC
Hurricane Frances
4,595
5,478
(1) Includes hurricanes occurring through 2012.
(2) Property coverage only. Excludes flood damage covered by the federally administered National Flood Insurance Program.
(3) Adjusted for inflation through 2012 by ISO using the GDP implicit price deflator.
Source: Property Claim Services (PCS), a division of Verisk Analytics.
A Firm Foundation updates at www.iii.org/firm-foundation/ 59
ESTIMATED VALUE OF INSURED COASTAL PROPERTIES VULNERABLE TO HURRICANES BY
STATE, 2012 (1)
($ billions)
Rank
State
Coastal
Total
exposure (2)
Coastal as a
percent of total
1
New York
$2,923.1
$4,724.2
62%
2
Florida
2,862.3
3,640.1
79
3
Texas
1,175.3
4,580.7
26
4
Massachusetts
849.6
1,561.4
54
5
New Jersey
713.9
2,129.9
34
6
Connecticut
567.8
879.1
65
7
Louisiana
293.5
823.0
36
8
South Carolina
239.3
843.6
28
9
Virginia
182.3
1,761.7
10
10
Maine
164.6
285.5
58
11
North Carolina
163.5
1,795.1
9
12
Alabama
118.2
917.8
13
13
Georgia
106.7
1,932.2
6
14
Delaware
81.9
208.9
39
15
New Hampshire
64.0
278.7
23
16
Mississippi
60.6
468.5
13
17
Rhode Island
58.3
207.5
28
18
Maryland
17.3
1,293.4
1
All states above
$10,642.2
$28,331.4
38%
Total U.S.
$10,642.2
$64,624.3
16%
(1) Includes residential and commercial properties, as of December 31, 2012. Ranked by value of insured coastal property.
(2) Total exposure is an estimate of the actual total value of all property in the state that is insured or can be insured, including
the full replacement value of structures and their contents, additional living expenses and the time value of business
interruption coverage.
Source: AIR Worldwide.
While individual hurricanes and earthquakes tend to produce higher losses, tornadoes account
for a major share of catastrophe losses because of their frequency.
A Firm Foundation updates at www.iii.org/firm-foundation/ 60
TORNADOES AND RELATED DEATHS BY STATE, 2012 (1)
State
Tornadoes
Fatalities
Rank (2)
State
Tornadoes
Fatalities
Rank (2)
Alabama
55
3
4
Montana
3
0
24
Alaska
0
0
(3)
Nebraska
43
0
7
Arizona
1
0
26
Nevada
2
0
25
Arkansas
18
0
13
New Hampshire
2
0
25
California
11
0
18
New Jersey
1
0
26
Colorado
33
0
9
New Mexico
6
0
22
Connecticut
0
0
(3)
New York
8
0
21
D.C.
0
0
(3)
North Carolina
23
0
12
Delaware
1
0
26
North Dakota
9
0
20
Florida
48
1
5
Ohio
13
4
16
Georgia
15
0
15
Oklahoma
63
6
3
Hawaii
1
0
26
Oregon
0
0
(3)
Idaho
2
0
25
Pennsylvania
12
0
17
Illinois
31
9
10
Rhode Island
1
0
26
Indiana
18
14
13
South Carolina
10
0
19
Iowa
16
0
14
South Dakota
11
0
18
Kansas
95
1
2
Tennessee
29
3
11
Kentucky
43
23
7
Texas
115
0
1
Louisiana
45
0
6
Utah
1
0
26
Maine
1
0
26
Vermont
1
0
26
Maryland
16
0
14
Virginia
11
0
18
Massachusetts
1
0
26
Washington
0
0
(3)
Michigan
6
0
22
West Virginia
3
0
24
Minnesota
36
0
8
Wisconsin
4
0
23
Mississippi
48
0
5
Wyoming
4
0
23
Missouri
29
6
11
United States
945 (4)
70
(1) Ranked by total number of tornadoes.
(2) States with the same number receive the same ranking.
(3) State had no tornadoes in 2012.
(4) The U.S. total will not match data used in other charts because it counts tornadoes that cross state lines.
Source: U.S. Department of Commerce, Storm Prediction Center, National Weather Service.
WILDFIRES BY STATE, 2012
State
Number of fires
Number of acres burned
Alabama
1,531
24,267
Alaska
416
286,887
Arizona
1,684
216,090
Arkansas
2,389
39,765
California
7,950
869,599
Colorado
1,498
246,445
Connecticut
180
417
Delaware
(1)
(1)
Florida
2,227
66,868
A Firm Foundation updates at www.iii.org/firm-foundation/ 61
State
Number of fires
Number of acres burned
Georgia
3,331
19,136
Hawaii
2
1,802
Idaho
1,149
1,667,654
Illinois
157
1,848
Indiana
69
1,846
Iowa
10
349
Kansas
71
53,607
Kentucky
1,293
35,397
Louisiana
967
11,088
Maine
551
489
Maryland
161
838
Massachusetts
1,446
1,027
Michigan
777
28,377
Minnesota
2,391
64,682
Mississippi
10
135
Missouri
701
26,456
Montana
2,213
1,220,655
Nebraska
149
316,015
Nevada
944
613,126
New Hampshire
312
221
New Jersey
1,068
3,095
New Mexico
1,029
372,497
New York
168
2,127
North Carolina
3,463
35,590
North Dakota
1,094
32,030
Ohio
309
1,250
Oklahoma
1,595
232,579
Oregon
963
1,256,049
Pennsylvania
683
3,157
Rhode Island
49
41
South Carolina
1,799
10,202
South Dakota
2,784
274,606
Tennessee
1,158
19,948
Texas
10,620
179,602
Utah
1,534
415,267
Vermont
92
405
Virginia
583
46,481
Washington
1,342
259,526
West Virginia
488
6,703
Wisconsin
1,536
2,880
Wyoming
838
357,117
United States
67,774
9,326,238
(1) Delaware had no wildfires in 2012.
Source: National Interagency Fire Center.
A Firm Foundation updates at www.iii.org/firm-foundation/ 62
TOP TEN STATES FOR WILDFIRES RANKED BY NUMBER OF FIRES AND BY NUMBER OF ACRES
BURNED, 2012
Rank
State
Number of fires
Rank
State
Number of
acres burned
1
Texas
10,620
1
Idaho
1,667,654
2
California
7,950
2
Oregon
1,256,049
3
North Carolina
3,463
3
Montana
1,220,655
4
Georgia
3,331
4
California
869,599
5
South Dakota
2,784
5
Nevada
613,126
6
Minnesota
2,391
6
Utah
415,267
7
Arkansas
2,389
7
New Mexico
372,497
8
Florida
2,227
8
Wyoming
357,117
9
Montana
2,213
9
Nebraska
316,015
10
South Carolina
1,799
10
Alaska
286,887
Source: National Interagency Fire Center.
Residual Markets
A myriad of different programs in place across the United States provide insurance to high risk
policyholders who may have difficulty obtaining coverage from the standard market. So called
residual, shared or involuntary market programs make basic insurance coverage more readily
available. Today, property insurance from the residual market is provided by Fair Access to
Insurance Requirements (FAIR) Plans, Beach and Windstorm Plans, and two state-run insurance
companies in Florida and Louisiana: Florida Citizens Property Insurance Company (CPIC) and
Louisiana Citizens Property Insurance Corporation (Louisiana Citizens). Established in the late
1960s to ensure the continued provision of insurance in urban areas, FAIR Plans often provide
property insurance in both urban and coastal areas, while Beach and Windstorm Plans cover
predominantly wind-only risks in designated coastal areas. Hybrid plans, like Florida's and
Louisiana’s plans, provide property insurance throughout those states. It is important to note that
in addition to windstorm risk, these plans routinely cover a range of other exposures, such as
vandalism and fire.
INSURANCE PROVIDED BY FAIR PLANS BY STATE, FISCAL YEAR 2012 (1)
State
Habitational
policies
Commercial
policies
Exposure (2)
($000)
Direct written
premiums ($000)
California
124,122
5,710
$40,222,201
$65,630
Connecticut
2,872
133
544,239
3,521
Delaware
1,980
73
290,962
601
D.C.
370
74
120,949
384
Florida (3)
1,515,169
46,948
429,424,399
3,180,755
Georgia
26,996
1,685
3,588,963
23,665
Illinois
6,332
95
640,124
6,626
Indiana
2,119
50
198,870
1,803
Iowa
1,009
33
65,573
657
A Firm Foundation updates at www.iii.org/firm-foundation/ 63
State
Habitational
policies
Commercial
policies
Exposure (2)
($000)
Direct written
premiums ($000)
Kansas
12,768
170
728,864
6,254
Kentucky
10,532
551
510,921
6,806
Louisiana (3)
137,037
5,848
19,975,000
189,106
Maryland
2,403
90
427,021
1,481
Massachusetts
214,546
444
76,046,929
272,533
Michigan
26,662
416
3,198,256
28,238
Minnesota
5,530
42
678,643
4,279
Mississippi
11,379
(4)
692,045
7,760
Missouri
4,267
163
231,458
2,162
New Jersey
18,893
592
2,707,750
11,027
New Mexico
10,279
251
67,777
3,619
New York
54,435
3,762
14,158,321
35,497
North Carolina
93,544
1,757
6,753,354
33,879
Ohio
31,828
575
6,910,928
24,714
Oregon
2,357
81
184,388
920
Pennsylvania
21,602
1,496
1,689,170
8,207
Rhode Island
15,772
126
3,799,590
19,954
Texas
135,050
(4)
17,966,799
102,383
Virginia
28,321
522
3,834,422
16,468
Washington
36
24
15,911
145
West Virginia
598
65
31,323
372
Total
2,518,808
71,776
$635,705,150
$4,059,446
(1) Does not include the FAIR Plans of Arkansas and Hawaii. Data for Maryland is incomplete.
(2) Exposure is the estimate of the aggregate value of all insurance in force in all FAIR Plans in all lines (except liability, where
applicable, and crime) for 12 months ending September through December.
(3) Citizens Property Insurance Corporation, which combined the FAIR and Beach Plans.
(4) The Mississippi and Texas FAIR Plans do not offer a commercial policy.
NA=Data not available.
Source: Property Insurance Plans Service Office (PIPSO).
INSURANCE PROVIDED BY BEACH AND WINDSTORM PLANS, FISCAL YEAR 2012 (1)
Number of
State
Habitational
policies
Commercial
policies
Exposure (2)
($000)
Direct written
premiums ($000)
Alabama
26,748
94
$4,584,758
$46,101
Mississippi
43,024
1,148
6,873,544
77,650
North Carolina
221,848
11,555
81,003,748
335,258
South Carolina
44,902
953
15,727,550
95,819
Texas
269,840
16,627
74,186,950
443,480
Total
606,362
30,377
$182,376,550
$998,308
(1) The Florida and Louisiana Beach Plans merged with their FAIR Plans.
(2) Exposure is the estimate of the aggregate value of all insurance in force in each state’s Beach and Windstorm Plan in all lines
(except liability, where applicable, and crime) for 12 months ending September through December.
Source: Property Insurance Plans Service Office (PIPSO).
A Firm Foundation updates at www.iii.org/firm-foundation/ 64
Captives by State
Over the years, a number of alternatives to traditional commercial insurance have emerged to
respond to fluctuations in the marketplace. Captives—a special type of insurer set up by a
company to insure its own risks—first emerged in the 1980s. With 586 licensed captives,
Vermont was the largest U.S. captive domicile in 2012, based on data in an annual survey of the
world's largest captive domiciles conducted by Business Insurance magazine. On a worldwide
basis, Vermont is the third largest captive domicile, topped only by Bermuda with 856 and the
Cayman Islands with 741 captives.
According to Business Insurance, there are 27 captive domiciles in the U.S., including 26 states
and the District of Columbia.
CAPTIVES BY STATE, 2011-2012
Rank
Domicile
2011
2012
1
Vermont
590
586
2
Utah
239
287
3
Delaware
150
190
4
Hawaii
172
179
5
District of Columbia
157
170
6
South Carolina
159
149
7
Kentucky
137
139
8
Nevada
127
133
9
Montana
85 (1)
114
10
Arizona
97
101
11
New York
50
50 (2)
12
Missouri
19
28
13
Alabama
18
23
14
Georgia
13
13
15
Tennessee
4
9
16
Michigan
5
6
17
Colorado
5
5 (2)
18
New Jersey
3
5
19
Oklahoma
1 (2)
5
20
South Dakota
4
4
21
Maine
2
3
22
Connecticut
0
2
23
Nebraska
1
2
24
Arkansas
1
1
25
Illinois
1
1 (2)
26
Kansas
1
1
27
West Virginia
1
1
United States
2,042
2,207
(1) Restated.
(2) Estimate.
Source: Business Insurance, March 11, 2013.
A Firm Foundation updates at www.iii.org/firm-foundation/ 65
Incurred Losses by State
Property/casualty insurers pay out billions of dollars each year to settle claims. Many of the
payments go to businesses, such as auto repair companies, that help claimants get their lives
back together after an accident, fire, windstorm or other incident that caused the injury or
property damage. Insurance claim payments support local businesses, enabling them to provide
jobs and pay taxes that support the local economy. When life insurance claims are paid, funds
flow into the general economy, as beneficiaries spend the money they receive. When
property/casualty insurance claims are paid, funds flow to the industries that supply claimants
with the goods and services necessary for their recovery. The charts below show incurred losses,
i.e. losses occurring during a fix period, whether or not adjusted or paid during the same period.
INCURRED LOSSES BY STATE, PROPERTY/CASUALTY INSURANCE, 2012 (1)
($000)
State
Incurred losses
Alabama
$3,936,647
Alaska
712,441
Arizona
4,746,637
Arkansas
2,246,487
California
32,649,773
Colorado
6,001,180
Connecticut
4,308,359
D.C.
705,782
Delaware
1,855,341
Florida
18,010,190
Georgia
7,932,314
Hawaii
777,130
Idaho
1,144,421
Illinois
15,215,148
Indiana
6,928,426
Iowa
4,277,735
Kansas
4,155,390
Kentucky
5,113,322
Louisiana
5,743,700
Maine
834,863
Maryland
5,872,644
Massachusetts
6,125,673
Michigan
13,026,013
Minnesota
5,020,742
Mississippi
2,151,276
Missouri
7,133,694
Montana
1,045,661
Nebraska
3,291,845
A Firm Foundation updates at www.iii.org/firm-foundation/ 66
State
Incurred losses
Nevada
2,283,635
New Hampshire
1,022,596
New Jersey
17,862,461
New Mexico
1,708,239
New York
32,420,005
North Carolina
6,945,953
North Dakota
842,849
Ohio
8,470,015
Oklahoma
4,976,605
Oregon
2,907,974
Pennsylvania
12,371,663
Rhode Island
1,125,213
South Carolina
3,741,491
South Dakota
1,865,783
Tennessee
6,084,705
Texas
23,694,757
Utah
1,834,997
Vermont
537,025
Virginia
6,283,486
Washington
5,021,291
West Virginia
1,593,822
Wisconsin
4,960,354
Wyoming
467,406
United States
$319,985,159
(1) Losses occurring within a fixed period whether or not adjusted or paid during the same period, on a direct basis before
reinsurance.
Source: SNL Financial LC.
INCURRED LOSSES BY STATE, PRIVATE PASSENGER AUTO INSURANCE, 2012 (1)
($000)
State
Incurred losses
Alabama
$1,472,119
Alaska
240,481
Arizona
2,081,948
Arkansas
888,565
California
12,092,687
Colorado
1,955,689
Connecticut
1,525,607
D.C.
156,446
Delaware
439,477
Florida
8,414,926
Georgia
3,537,248
A Firm Foundation updates at www.iii.org/firm-foundation/ 67
State
Incurred losses
Hawaii
317,079
Idaho
382,483
Illinois
3,530,367
Indiana
1,788,865
Iowa
768,291
Kansas
893,179
Kentucky
1,670,066
Louisiana
2,206,828
Maine
324,391
Maryland
2,497,651
Massachusetts
2,441,454
Michigan
8,180,850
Minnesota
1,617,952
Mississippi
867,647
Missouri
2,023,811
Montana
290,519
Nebraska
571,750
Nevada
1,065,391
New Hampshire
393,232
New Jersey
4,390,125
New Mexico
687,893
New York
7,896,837
North Carolina
2,892,690
North Dakota
202,940
Ohio
3,146,418
Oklahoma
1,368,190
Oregon
1,293,266
Pennsylvania
4,459,759
Rhode Island
450,968
South Carolina
1,719,316
South Dakota
246,912
Tennessee
1,970,964
Texas
9,161,966
Utah
795,945
Vermont
169,852
Virginia
2,758,727
Washington
2,354,201
West Virginia
631,987
Wisconsin
1,532,057
Wyoming
170,486
United States
$112,938,497
(1) Losses occurring within a fixed period whether or not adjusted or paid during the same period, on a direct basis before
reinsurance.
Source: SNL Financial LC.
A Firm Foundation updates at www.iii.org/firm-foundation/ 68
INCURRED LOSSES BY STATE, HOMEOWNERS INSURANCE, 2012 (1)
($000)
State
Incurred losses
Alabama
$777,227
Alaska
90,821
Arizona
597,391
Arkansas
370,596
California
3,083,293
Colorado
1,748,061
Connecticut
709,831
D.C.
64,377
Delaware
101,511
Florida
2,357,730
Georgia
1,105,611
Hawaii
71,994
Idaho
161,903
Illinois
1,906,647
Indiana
1,422,852
Iowa
248,590
Kansas
484,261
Kentucky
1,202,561
Louisiana
722,618
Maine
118,490
Maryland
892,287
Massachusetts
612,814
Michigan
1,263,662
Minnesota
852,529
Mississippi
364,173
Missouri
1,250,773
Montana
121,596
Nebraska
290,594
Nevada
228,993
New Hampshire
138,462
New Jersey
2,724,824
New Mexico
259,891
New York
3,716,852
North Carolina
1,031,657
North Dakota
33,075
Ohio
1,872,415
Oklahoma
1,102,972
Oregon
299,113
Pennsylvania
1,710,433
Rhode Island
114,218
South Carolina
595,506
A Firm Foundation updates at www.iii.org/firm-foundation/ 69
State
Incurred losses
South Dakota
110,377
Tennessee
1,465,511
Texas
3,338,933
Utah
206,530
Vermont
72,388
Virginia
992,601
Washington
685,154
West Virginia
304,581
Wisconsin
471,813
Wyoming
60,113
United States
$44,531,202
(1) Losses occurring within a fixed period whether or not adjusted or paid during the same period, on a direct basis before
reinsurance.
Source: SNL Financial LC.
INCURRED LOSSES BY STATE, COMMERCIAL INSURANCE, 2012 (1)
($000)
State
Incurred losses
Alabama
$1,511,497
Alaska
375,932
Arizona
2,010,314
Arkansas
955,738
California
17,085,643
Colorado
2,180,082
Connecticut
2,043,848
D.C.
405,764
Delaware
1,246,159
Florida
7,051,036
Georgia
3,128,859
Hawaii
376,950
Idaho
552,460
Illinois
9,498,682
Indiana
3,391,383
Iowa
3,115,480
Kansas
2,619,904
Kentucky
2,047,251
Louisiana
2,770,187
Maine
383,596
Maryland
2,422,163
Massachusetts
3,026,382
Michigan
3,395,367
Minnesota
2,375,942
A Firm Foundation updates at www.iii.org/firm-foundation/ 70
State
Incurred losses
Mississippi
874,963
Missouri
3,641,491
Montana
587,774
Nebraska
2,275,233
Nevada
961,173
New Hampshire
481,623
New Jersey
10,653,852
New Mexico
730,848
New York
20,562,541
North Carolina
2,890,327
North Dakota
557,456
Ohio
3,186,278
Oklahoma
2,393,522
Oregon
1,249,719
Pennsylvania
5,974,235
Rhode Island
543,341
South Carolina
1,379,868
South Dakota
1,434,348
Tennessee
2,481,783
Texas
10,761,565
Utah
797,966
Vermont
286,147
Virginia
2,425,632
Washington
1,882,467
West Virginia
631,347
Wisconsin
2,732,111
Wyoming
207,572
United States
$156,555,802
(1) Losses occurring within a fixed period whether or not adjusted or paid during the same period, on a direct basis before
reinsurance
Source: SNL Financial LC.
INCURRED LOSSES BY STATE, WORKERS COMPENSATION INSURANCE, 2012 (1)
($000)
State
Incurred losses
Alabama
$169,961
Alaska
166,050
Arkansas
128,318
Arizona
503,700
California
6,330,956
Colorado
475,725
Connecticut
544,942
A Firm Foundation updates at www.iii.org/firm-foundation/ 71
State
Incurred losses
D.C.
59,417
Delaware
129,602
Florida
1,091,014
Georgia
692,932
Hawaii
120,171
Iowa
438,312
Idaho
211,943
Illinois
1,832,340
Indiana
494,962
Kansas
260,285
Kentucky
307,532
Louisiana
452,873
Massachusetts
549,127
Maryland
587,774
Maine
113,838
Michigan
504,838
Minnesota
509,669
Missouri
521,938
Mississippi
168,766
Montana
180,877
North Carolina
893,823
North Dakota
1,772
Nebraska
203,463
New Hampshire
147,584
New Jersey
1,382,440
New Mexico
194,004
Nevada
91,813
New York
4,005,248
Ohio
14,121
Oklahoma
712,555
Oregon
364,130
Pennsylvania
1,735,260
Rhode Island
111,681
South Carolina
377,474
South Dakota
87,981
Tennessee
504,850
Texas
1,113,694
Utah
243,182
Virginia
571,298
Vermont
99,904
Washington
3,397
Wisconsin
1,115,420
West Virginia
174,117
Wyoming
1,200
A Firm Foundation updates at www.iii.org/firm-foundation/ 72
State
Incurred losses
United States
$31,528,312
(1) Losses occurring within a fixed period whether or not adjusted or paid during the same period, on a direct basis before
reinsurance.
Source: SNL Financial LC.
LIFE INSURANCE CLAIMS AND BENEFITS PAID BY STATE, 2012 (1)
($000)
State
Claims and benefits paid
Alabama
$4,890,686
Alaska
786,146
Arkansas
2,784,639
Arizona
7,500,805
California
41,886,798
Colorado
6,863,322
Connecticut
16,248,658
D.C.
1,781,718
Delaware
10,736,372
Florida
27,716,020
Georgia
9,550,848
Hawaii
2,253,240
Idaho
1,579,441
Illinois
18,006,450
Indiana
8,356,937
Iowa
5,487,144
Kansas
5,349,733
Kentucky
4,362,263
Louisiana
5,102,934
Maine
1,774,176
Maryland
8,194,850
Massachusetts
12,266,518
Michigan
14,213,682
Minnesota
8,993,581
Mississippi
2,498,713
Missouri
9,192,585
Montana
963,388
Nebraska
3,061,237
Nevada
2,601,015
New Hampshire
2,332,444
New Jersey
18,175,834
New Mexico
2,434,973
New York
35,559,412
North Carolina
13,120,047
A Firm Foundation updates at www.iii.org/firm-foundation/ 73
State
Claims and benefits paid
North Dakota
848,196
Ohio
16,207,060
Oklahoma
3,716,079
Oregon
4,806,055
Pennsylvania
21,577,524
Rhode Island
1,857,320
South Carolina
5,150,284
South Dakota
1,090,580
Tennessee
7,581,860
Texas
24,405,679
Utah
3,387,341
Vermont
1,141,331
Virginia
10,157,400
Washington
7,754,328
West Virginia
1,790,565
Wisconsin
8,166,974
Wyoming
577,795
United States
$436,842,982
(1) On a direct basis before reinsurance. Includes life insurance, death benefits, matured endowments, annuity benefits, and other
life insurance benefits. Does not include accident and health benefits.
Source: SNL Financial LC.
Insured Cars by State
All states and the District of Columbia use special systems to guarantee that auto insurance is
available to those who cannot obtain it in the private market. Each type of system is commonly
known as an assigned risk plan, although the term technically applies to only one type of plan.
The assigned risk and other plans are known in the insurance industry as the shared, or
residual, market. Policyholders in assigned risk plans are, as the name suggests, assigned to
various insurance companies doing business in the state. Hence the term voluntary (regular)
market, where auto insurers are free to select policyholders rather than have them assigned. The
chart below shows the number of vehicles insured by state, including those in the voluntary and
residual markets.
PRIVATE PASSENGER CARS INSURED IN THE SHARED AND VOLUNTARY MARKETS, 2011
State
Voluntary
market
Shared
market
Total
Shared
market as a
percent of
total
Alabama
3,454,426
1
3,454,427
(1)
Alaska
473,997
133
474,130
0.028%
Arizona
4,165,845
2
4,165,847
(1)
Arkansas
2,130,050
1
2,130,051
(1)
California
24,221,088
711
24,221,799
0.003
Colorado
3,780,070
0
3,780,070
(1)
A Firm Foundation updates at www.iii.org/firm-foundation/ 74
State
Voluntary
market
Shared
market
Total
Shared
market as a
percent of
total
Connecticut
2,453,910
196
2,454,106
0.008
Delaware
618,481
4
618,485
0.001
D.C.
235,423
143
235,566
0.061
Florida
11,438,450
1,196
11,439,646
0.010
Georgia
6,963,952
0
6,963,952
(1)
Hawaii
823,376
4,445
827,821
0.537
Idaho
1,066,619
4
1,066,623
(1)
Illinois
7,941,775
824
7,942,599
0.010
Indiana
4,467,518
3
4,467,521
(1)
Iowa
2,412,376
20
2,412,396
0.001
Kansas
2,268,604
1,761
2,270,365
0.078
Kentucky
3,049,628
19
3,049,647
0.001
Louisiana
2,880,945
1
2,880,946
(1)
Maine
1,016,216
15
1,016,231
0.001
Maryland
3,871,092
49,615
3,920,707
1.265
Massachusetts
4,145,622
110,505
4,256,127
2.596
Michigan
6,165,673
290
6,165,963
0.005
Minnesota
3,837,589
4
3,837,593
(1)
Mississippi
1,833,933
23
1,833,956
0.001
Missouri
4,250,307
24
4,250,331
0.001
Montana
809,847
111
809,958
0.014
Nebraska
1,492,530
1
1,492,531
(1)
Nevada
1,791,981
5
1,791,986
(1)
New Hampshire
896,567
281
896,848
0.031
New Jersey
5,298,071
60,858
5,358,929
1.136
New Mexico
1,523,172
0
1,523,172
(1)
New York
9,279,425
79,004
9,358,429
0.844
North Carolina
5,564,766
1,603,257
7,168,023
22.367
North Dakota
624,462
0
624,462
(1)
Ohio
8,100,690
0
8,100,690
(1)
Oklahoma
2,823,464
23
2,823,487
0.001
Oregon
2,687,347
3
2,687,350
(1)
Pennsylvania
8,589,945
9,163
8,599,108
0.107
Rhode Island
664,224
8,370
672,594
1.244
South Carolina
3,408,225
-1
3,408,224
(1)
South Dakota
687,592
0
687,592
(1)
Tennessee
4,303,497
10
4,303,507
(1)
Texas (2)
NA
NA
NA
NA
Utah
1,827,781
0
1,827,781
(1)
Vermont
483,383
112
483,495
0.023
Virginia
6,132,960
727
6,133,687
0.012
Washington
4,499,231
0
4,499,231
(1)
A Firm Foundation updates at www.iii.org/firm-foundation/ 75
State
Voluntary
market
Shared
market
Total
Shared
market as a
percent of
total
West Virginia
1,323,344
6
1,323,350
(1)
Wisconsin
4,010,389
0
4,010,389
(1)
Wyoming
523,597
0
523,597
(1)
United States
187,313,455
1,931,870
189,245,325
1.021%
(1) Less than 0.001 percent.
(2) Texas car years are no longer available.
NA=Data not available.
Source: Automobile Insurance Plans Service Office.
Insured Homes by State
HOMES BY STATE
A 2006 Insurance Research Council poll found that 96 percent of homeowners had homeowners
insurance while 43 percent of renters had renters insurance.
PERCENT OF OCCUPIED HOUSING UNITS THAT ARE OWNER OCCUPIED, 2011
State
Percent
Rank (1)
State
Percent
Rank (1)
Alabama
69.9%
10
Montana
67.9%
21
Alaska
63.1
41
Nebraska
66.9
31
Arizona
63.7
40
Nevada
56.3
48
Arkansas
66.6
33
New Hampshire
71.5
6
California
54.9
49
New Jersey
65.0
37
Colorado
64.4
39
New Mexico
68.2
19
Connecticut
67.4
24
New York
53.6
50
Delaware
71.6
5
North Carolina
66.5
34
D.C.
41.2
51
North Dakota
65.7
36
Florida
66.7
32
Ohio
67.0
29
Georgia
64.6
38
Oklahoma
67.0
29
Hawaii
56.8
47
Oregon
60.8
45
Idaho
68.7
17
Pennsylvania
69.5
13
Illinois
67.3
25
Rhode Island
60.6
46
Indiana
69.7
12
South Carolina
69.2
15
Iowa
72.4
2
South Dakota
68.5
18
Kansas
67.8
23
Tennessee
67.3
25
Kentucky
68.9
16
Texas
62.9
42
Louisiana
66.4
35
Utah
69.4
14
Maine
71.0
8
Vermont
71.3
7
Maryland
67.3
25
Virginia
67.3
25
Massachusetts
62.1
44
Washington
62.8
43
Michigan
71.7
4
West Virginia
72.3
3
Minnesota
72.8
1
Wisconsin
67.9
21
Mississippi
69.8
11
Wyoming
70.6
9
Missouri
68.0
20
United States
64.6%
A Firm Foundation updates at www.iii.org/firm-foundation/ 76
(1) States with the same percentages receive the same rank.
Source: U.S. Department of Commerce, Census Bureau; American Community Survey.
Businesses by State
Nearly 98 percent of businesses either purchase business insurance or self-insure, according to a
poll by the National Federation of Independent Businesses. There are about 6 billion small
businesses (those with 500 employees or fewer), accounting for about $2 trillion in payroll,
according data from the U.S. Census.
SMALL BUSINESSES BY STATE, 2009 (1)
State
Number of establishments
Employment
Annual payment ($000)
Alabama
81,545
787,606
$25,415,742
Alaska
17,285
130,853
5,750,306
Arizona
108,443
975,437
33,104,662
Arkansas
54,374
477,491
13,866,131
California
738,477
6,541,831
271,680,712
Colorado
130,622
988,785
37,344,471
Connecticut
76,052
734,564
34,336,491
Delaware
19,565
170,991
6,631,096
D.C.
16,324
217,296
12,656,356
Florida
415,139
2,901,245
101,358,005
Georgia
178,544
1,533,917
53,150,982
Hawaii
27,482
266,478
9,112,870
Idaho
38,980
287,006
8,252,190
Illinois
266,429
2,454,700
99,268,951
Indiana
119,454
1,185,907
37,742,787
Iowa
69,316
664,664
20,221,662
Kansas
63,172
604,613
19,377,620
Kentucky
73,493
714,275
21,857,612
Louisiana
86,050
890,873
29,786,419
Maine
35,667
282,122
9,033,968
Maryland
113,214
1,105,231
45,654,113
Massachusetts
144,864
1,402,940
63,840,349
Michigan
187,308
1,769,122
61,077,179
Minnesota
125,964
1,205,749
42,513,155
Mississippi
48,542
446,555
12,719,888
Missouri
125,614
1,135,569
36,778,409
Montana
32,831
232,640
6,603,329
Nebraska
44,436
397,385
12,270,790
Nevada
48,818
441,075
15,770,250
New Hampshire
32,140
289,778
11,304,978
New Jersey
200,112
1,731,788
75,349,350
New Mexico
37,500
334,680
10,541,503
New York
457,308
3,794,041
175,065,611
North Carolina
180,203
1,585,019
50,451,526
North Dakota
18,897
178,324
5,351,946
A Firm Foundation updates at www.iii.org/firm-foundation/ 77
State
Number of establishments
Employment
Annual payment ($000)
Ohio
207,158
2,140,192
71,327,132
Oklahoma
76,010
691,016
21,686,683
Oregon
93,993
767,009
25,191,835
Pennsylvania
247,091
2,445,158
87,387,258
Rhode Island
25,104
228,482
8,162,183
South Carolina
83,989
750,147
22,358,593
South Dakota
22,829
201,636
5,789,722
Tennessee
104,878
1,037,970
35,409,414
Texas
418,507
4,106,861
151,632,915
Utah
59,544
496,909
16,265,170
Vermont
19,433
157,564
5,238,838
Virginia
157,835
1,459,362
57,667,423
Washington
152,914
1,272,282
48,019,121
West Virginia
31,787
305,711
8,750,722
Wisconsin
119,703
1,221,520
40,019,155
Wyoming
18,080
139,134
4,671,400
United States
6,253,019
56,281,503
$2,084,818,973
(1) Number of establishments with less than 500 employees.
Source: U.S. Census, County Business.
A Firm Foundation updates at www.iii.org/firm-foundation/ 78
I.I.I. Resources
Apps and Software
The I.I.I. Toolkit is a handy, free app suite that puts everything you need to plan,
prepare, respond and restore in the palm of your hand. It includes three
indispensable apps: Know Your Plan™, the award-winning disaster preparedness
app that helps you, your family and even your pets be ready to safely get out of
harm’s way before trouble starts; Know Your Coverage™ to help you work out an
insurance plan for your needs and budget through fun, interactive quizzes; and
Know Your Stuff® – Home Inventory app, which ensures you’ll always have an up-
to-date record of your belongings. (Available in the Apple App Store and Google
Play.)
Know Your Stuff® – Home Inventory is also accessible on the Web. Visit
www.KnowYourStuff.org to start your home inventory today.
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Blogs
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you.
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understand their insurance coverage, the issues and their choices.
A Firm Foundation updates at www.iii.org/firm-foundation/ 79
I.I.I. Online
Website—Visit www.iii.org for a wealth of information for individuals and businesses, from
consumer brochures to issues papers to white papers to statistics
I.I.I. Store—Your gateway to a wide variety of books, brochures and other resources from the
Insurance Information Institute
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A Firm Foundation updates at www.iii.org/firm-foundation/ 80
Insurance and Related Service Organizations
The following organizations are supported by insurance companies or have activities closely
related to insurance. National and state organizations which subscribe to the services of the
Insurance Information Institute are identified by an asterisk (*)
A.M. BEST COMPANY INC. • Ambest Road, Oldwick, NJ 08858. Tel. 908-439-2200.
www.ambest.com — Rating organization and publisher of reference books and periodicals
relating to the insurance industry.
ACORD • One Blue Hill Plaza, 15th Floor, PO Box 1529, Pearl River, NY 10965-8529. Tel. 845-
620-1700. Fax. 845-620-3600. www.acord.com — An industry-sponsored institute serving as
the focal point for improving the computer processing of insurance transactions through the
insurance agency system.
ADVOCATES FOR HIGHWAY AND AUTO SAFETY • 750 First Street NE, Suite 901,
Washington, DC 20002. Tel. 202-408-1711. Fax. 202-408-1699. www.saferoads.org — An
alliance of consumer, safety and insurance organizations dedicated to highway and auto safety.
AIR WORLDWIDE CORPORATION • 131 Dartmouth Street, Boston, MA 02116. Tel. 617-
267-6645. Fax. 617-267-8284. www.air-worldwide.com — Risk modeling and technology firm
that develops models of global natural hazards, enabling companies to identify, quantify and
plan for the financial consequences of catastrophic events.
AMERICA’S HEALTH INSURANCE PLANS (AHIP) • 601 Pennsylvania Avenue NW,
South Building, Suite 500, Washington, DC 20004. Tel. 202-778-3200. Fax. 202-331-7487.
www.ahip.org — National trade association representing the health insurance industry.
AMERICAN ACADEMY OF ACTUARIES • 1850 M Street NW, Suite 300, Washington, DC
20036. Tel. 202-223-8196. Fax. 202-872-1948. www.actuary.org — Professional association for
actuaries. Issues standards of conduct and provides government liaison and advisory opinions.
AMERICAN ASSOCIATION FOR LONG-TERM CARE INSURANCE • 3835 E. Thousand
Oaks Blvd., Suite 336, Westlake Village, CA 91362. Tel. 818-597-3227. Fax. 818-597-3206.
www.aaltci.org/ — A national professional organization exclusively dedicated to promoting the
importance of planning for long-term care needs.
AMERICAN ASSOCIATION OF CROP INSURERS • 1 Massachusetts Avenue NW, Suite
800, Washington, DC 20001-1401. Tel. 202-789-4100. Fax. 202-408-7763.
www.cropinsurers.com/ — Trade association of insurance companies to promote crop
insurance.
AMERICAN ASSOCIATION OF INSURANCE SERVICES • 1745 South Naperville Road,
Wheaton, IL 60189-5898. Tel. 800-564-AAIS. Fax. 630-681-8356. www.aaisonline.com —
Rating, statistical and advisory organization, made up principally of small and medium-sized
property/casualty companies.
AMERICAN ASSOCIATION OF MANAGING GENERAL AGENTS • 610 Freedom
Business Center, Suite 110, King of Prussia, PA 19406. Tel. 610-992-0022. Fax. 610-992-0021.
www.aamga.org — Membership association of managing general agents of insurers.
A Firm Foundation updates at www.iii.org/firm-foundation/ 81
AMERICAN BANKERS INSURANCE ASSOCIATION • 1120 Connecticut Avenue NW,
Washington, DC 20036. Tel. 202-663-5172. Fax. 202-828-4546. www.theabia.com — A
separately chartered affiliate of the American Bankers Association. A full service association for
bank insurance interests dedicated to furthering the policy and business objectives of banks in
insurance.
AMERICAN COUNCIL OF LIFE INSURERS (ACLI) • 101 Constitution Avenue NW, Suite
700, Washington, DC 20001-2133. Tel. 202-624-2018. Fax. 866-953-4138. www.acli.com —
Trade association responsible for the public affairs, government, legislative and research aspects
of the life insurance business.
*AMERICAN INSTITUTE OF MARINE UNDERWRITERS • 14 Wall Street, New York,
NY 10005. Tel. 212-233-0550. Fax. 212-227-5102. www.aimu.org — Provides information of
concern to marine underwriters and promotes their interests.
AMERICAN INSURANCE ASSOCIATION (AIA) – NATIONAL OFFICE • 2101 L Street
NW, Suite 400, Washington, DC 20037. Tel. 202-828-7139. Fax. 202-293-1219. www.aiadc.org
— Trade and service organization for property/casualty insurance companies. Provides a forum
for the discussion of problems as well as safety, promotional and legislative services.
AMERICAN LAND TITLE ASSOCIATION • 1828 L Street NW, Suite 705, Washington, DC
20036. Tel. 202-296-3671. Fax. 202-223-5843. www.alta.org — Trade organization for title
insurers, abstractors and agents. Performs statistical research and lobbying services.
AMERICAN NUCLEAR INSURERS • 95 Glastonbury Boulevard, Suite 300, Glastonbury,
CT 06033. Tel. 860-682-1301. Fax. 860-659-0002. www.amnucins.com — A nonprofit
unincorporated association through which liability insurance protection is provided against
hazards arising out of nuclear reactor installations and their operations.
AMERICAN PREPAID LEGAL SERVICES INSTITUTE • 321 North Clark Street, Chicago,
IL 60654. Tel. 312-988-5751. www.aplsi.org — National membership organization providing
information and technical assistance to lawyers, insurance companies, administrators,
marketers and consumers regarding group and prepaid legal service plans.
AMERICAN RISK AND INSURANCE ASSOCIATION • 716 Providence Road, Malvern,
PA 19355-3402. Tel. 610-640-1997. Fax. 610-725-1007. www.aria.org — Association of scholars
in the field of risk management and insurance, dedicated to advancing knowledge in the field
and enhancing the career development of its members.
AMERICAN TORT REFORM ASSOCIATION • 1101 Connecticut Avenue NW, Suite 400,
Washington, DC 20036. Tel. 202-682-1163. Fax. 202-682-1022. www.atra.org — A broad based,
bipartisan coalition of more than 300 businesses, corporations, municipalities, associations and
professional firms that support civil justice reform.
APIW: A PROFESSIONAL ASSOCIATION OF WOMEN IN INSURANCE • 990 Cedar
Bridge Ave., Suite B&PMB 210, Brick, NJ 08723-4152. Tel. 973-941-6024. Fax. 732-920-1260.
www.apiw.org — A professional association of women in the insurance and reinsurance industry
and related fields. Provides professional education, networking and support services to
encourage the development of professional leadership among its members.
A Firm Foundation updates at www.iii.org/firm-foundation/ 82
ARBITRATION FORUMS, INC. • 3350 Buschwood Park Dr., Suite 295, Tampa, FL 33618.
Tel. 866-977-3434. www.arbfile.org — Nonprofit provider of interinsurance dispute resolution
services for self-insureds, insurers and claim service organizations.
ASSOCIATION OF FINANCIAL GUARANTY INSURERS • Mackin & Company, 139
Lancaster Street, Albany, NY 12210. Tel. 518-449-4698. Fax. 518-432-5651. www.afgi.org —
Trade association of the insurers and reinsurers of municipal bonds and asset-backed securities.
ASSOCIATION OF GOVERNMENTAL RISK POOLS • 9 Cornell Rd., Latham, NY 12110.
Tel. 518-220-1111. Fax. 877-737-6232. www.agrip.org — Organization for public entity risk and
benefits pools in North America.
AUTOMOBILE INSURANCE PLANS SERVICE OFFICE • 302 Central Avenue, Johnston,
RI 02919. Tel. 800-413-5808. Fax. 401-528-1361. www.aipso.com — Develops and files rates
and provides other services for state-mandated automobile insurance plans.
BANK INSURANCE & SECURITIES ASSOCIATION • 2025 M Street NW, Suite 800,
Washington, DC 20036. Tel. 202-367-1111. Fax. 202-367-2111. www.bisanet.org — Fosters the
full integration of securities and insurance businesses with depository institutions’ traditional
banking businesses. Participants include executives from the securities, insurance, investment
advisory, trust, private banking, retail, capital markets and commercial divisions of depository
institutions.
BISRA - BANK INSURANCE & SECURITIES RESEARCH ASSOCIATES • 300 Day Hill
Road, Windsor, CT 06095-4761. Tel. 860-298-3935. www.bisra.com — Consultant focusing on
the financial services marketplace. Conducts studies of sales penetration, profitability,
compensation and compliance.
CAPTIVE INSURANCE COMPANIES ASSOCIATION • 4248 Park Glen Rd., Minneapolis,
MN 55416. Tel. 952-928-4655. Fax. 952-929-1318. www.cicaworld.com — Organization that
disseminates information useful to firms that utilize the captive insurance company concept to
solve corporate insurance problems.
*CASUALTY ACTUARIAL SOCIETY • 4350 North Fairfax Drive, Suite 250, Arlington, VA
22203. Tel. 703-276-3100. Fax. 703-276-3108. www.casact.org — Promotes actuarial and
statistical science in property/casualty insurance fields.
CERTIFIED AUTOMOTIVE PARTS ASSOCIATION • 1000 Vermont Ave. NW, Suite 1010,
Washington, DC 20005. Tel. 202-737-2212. Fax. 202-737-2214. www.capacertified.org —
Nonprofit organization formed to develop and oversee a test program guaranteeing the
suitability and quality of automotive parts.
COALITION AGAINST INSURANCE FRAUD • 1012 14th Street NW, Suite 200,
Washington, DC 20005. Tel. 202-393-7330. www.insurancefraud.org — An alliance of
consumer, law enforcement, and insurance industry groups dedicated to reducing all forms of
insurance fraud through public advocacy and education.
CONNING RESEARCH AND CONSULTING, INC. • One Financial Plaza, Hartford, CT
06103-2627. Tel. 860-299-2000. www.conningresearch.com — Research and consulting firm
that offers an array of specialty information products, insights and analyses of key issues
confronting the insurance industry.
A Firm Foundation updates at www.iii.org/firm-foundation/ 83
CORELOGIC • 40 Pacifica, Suite 900, Irvine, CA 92618. Tel. 800-426-1466.
www.corelogic.com — Provides comprehensive data, analytics and services to financial services
and real estate professionals.
COUNCIL OF INSURANCE AGENTS AND BROKERS • 701 Pennsylvania Avenue NW,
Suite 750, Washington, DC 20004-2608. Tel. 202-783-4400. Fax. 202-783-4410.
www.ciab.com — A trade organization representing leading commercial insurance agencies and
brokerage firms.
CROP INSURANCE AND REINSURANCE BUREAU • 201 Massachusetts Avenue NE,
Suite C5, Washington, DC 20002. Tel. 202-544-0067. Fax. 202-330-5255.
www.cropinsurance.org — Crop insurance trade organization.
DEFENSE RESEARCH INSTITUTE • 55 W. Monroe, Suite 2000, Chicago, IL 60603. Tel.
312-795-1101. Fax. 312-795-0749. www.dri.org — A national and international membership
association of lawyers and others concerned with the defense of civil actions.
EASTBRIDGE CONSULTING GROUP, INC. • 50 Avon Meadow Lane, Avon, CT 06001.
Tel. 860-676-9633. www.eastbridge.com — Provides consulting, marketing, training and
research services to financial services firms, including those involved in worksite marketing and
the distribution of individual and employee benefits products.
EMPLOYEE BENEFIT RESEARCH INSTITUTE • 1100 13th Street NW, Suite 878,
Washington, DC 20005- 4051. Tel. 202-659-0670. Fax. 202-775-6312. www.ebri.org — The
Institute’s mission is to advance the public’s, the media’s and policymakers’ knowledge and
understanding of employee benefits and their importance to the U.S. economy.
EQECAT • 475 14th Street, Suite 550, Oakland, CA 94612-1938. Tel. 510-817-3100.
www.eqecat.com — Provider of products and services for managing natural and man-made
risks. Provides innovative catastrophe management solutions for property and casualty
insurance underwriting, accumulation management and transfer of natural hazard and
terrorism risk.
FEDERAL INSURANCE & MITIGATION ADMINISTRATION • 500 C Street SW,
Washington, DC 20472. Tel. 202-646-2500. www.fema.gov/what-mitigation/federal-insurance-
mitigation-administration — Manages the National Flood Insurance Program and a range of
programs designed to reduce future losses from floods, earthquakes, tornadoes and other
natural disasters.
FITCH CREDIT RATING COMPANY • One State Street Plaza, New York, NY 10004. Tel.
212-908-0500. www.fitchratings.com — Assigns claims-paying ability ratings to insurance
companies.
GLOBAL AEROSPACE, INC. • One Sylvan Way, Parsippany, NJ 07054. Tel. 973-490-8500.
Fax. 973-490-5600. www.global-aero.co.uk — A pool of property/casualty companies engaged
in writing all classes of aviation insurance.
GLOBAL ASSOCIATION OF RISK PROFESSIONALS • 111 Town Square Place, Suite
1215, Jersey City, NJ 07310. Tel. 201-719-7210. Fax. 201-222-5022. www.garp.com —
International group whose aim is to encourage and enhance communications between risk
professionals, practitioners and regulators worldwide.
A Firm Foundation updates at www.iii.org/firm-foundation/ 84
GLOBAL FEDERATION OF INSURANCE ASSOCIATIONS • c/o Insurance Europe, Rue
Montoyer 51, B-1000, Brussels, Tel. +32 2-894-3081. www.GFIAinsurance.org — Represents 32
global insurance associations to speak on international issues.
GRIFFITH INSURANCE EDUCATION FOUNDATION • 7100 North High Street, Suite
200, Worthington, OH 43085. Tel. 855-288-7743. Fax. 614-880-9872.
www.griffithfoundation.org — The foundation promotes the teaching and study of risk
management and insurance at colleges and universities nationwide and provides education
programs for public policymakers on the basic principles of risk management and insurance.
HIGHWAY LOSS DATA INSTITUTE • 1005 North Glebe Road, Suite 700, Arlington, VA
22201. Tel. 703-247-1600. Fax. 703-247-1595. www.iihs.org/ — Nonprofit organization to
gather, process and provide the public with insurance data concerned with human and economic
losses resulting from highway accidents.
INDEPENDENT INSURANCE AGENTS & BROKERS OF AMERICA, INC. • 127 South
Peyton Street, Alexandria, VA 22314. Tel. 800-221-7917. Fax. 703-683-7556.
www.independentagent.com — Trade association of independent insurance agents.
*INLAND MARINE UNDERWRITERS ASSOCIATION • 14 Wall Street, 8th Floor, New
York, NY 10005. Tel. 212-233-0550. Fax. 212-227-5102. www.imua.org — Forum for discussion
of problems of common concern to inland marine insurers.
INSURANCE ACCOUNTING AND SYSTEMS ASSOCIATION, INC. • PO Box 51340,
Durham, NC 27717. Tel. 919-489-0991. www.iasa.org — Promotes the study, research and
development of modern techniques in insurance accounting and systems.
INSURANCE COMMITTEE FOR ARSON CONTROL • 3601 Vincennes Road,
Indianapolis, IN 46268. Tel. 317-876-6226. www.arsoncontrol.org — All-industry coalition that
serves as a catalyst for insurers’ antiarson efforts and a liaison with government agencies and
other groups devoted to arson control.
INSURANCE DATA MANAGEMENT ASSOCIATION, INC. • 545 Washington Boulevard,
Jersey City, NJ 07310-1686. Tel. 201-469-3069. www.idma.org — An independent, nonprofit,
professional, learned association dedicated to increasing the level of professionalism, knowledge
and visibility of insurance data management.
INSURANCE INDUSTRY CHARITABLE FOUNDATION • 2121 N. California Blvd., Suite
555, Walnut Creek, CA 94596. Tel. 925-280-8009. Fax. 925-280-8059. www.iicf.org — Seeks to
help communities and enrich lives by combining the collective strengths of the industry to
provide grants, volunteer service and leadership.
INSURANCE INFORMATION INSTITUTE (I.I.I.) • 110 William Street, 24th Floor, New
York, NY 10038. Tel. 212-346-5500. Fax. 212-732-1916. www.iii.org — A primary source for
information, analysis and reference on insurance subjects.
INSURANCE INFORMATION NETWORK OF CALIFORNIA (IINC) • 500 South Grand
Ave., Suite 1600, Los Angeles, CA 90071. Tel. 213-624-4462. Fax. 213-624-4432. www.iinc.org
A Firm Foundation updates at www.iii.org/firm-foundation/ 85
INSURANCE INSTITUTE FOR BUSINESS & HOME SAFETY • 4775 East Fowler
Avenue, Tampa, FL 33617. Tel. 813-286-3400. Fax. 813-286-9960. www.DisasterSafety.org —
An insurance industry-sponsored nonprofit organization dedicated to reducing losses, deaths,
injuries and property damage resulting from natural hazards.
INSURANCE INSTITUTE FOR HIGHWAY SAFETY • 1005 North Glebe Road, Suite 800,
Arlington, VA 22201. Tel. 703-247-1500. Fax. 703-247-1588. www.iihs.org — Research and
education organization dedicated to reducing loss, death, injury and property damage on the
highways. Fully funded by property/ casualty insurers.
INSURANCE LIBRARY ASSOCIATION OF BOSTON • 156 State Street, Second Floor,
Boston, MA 02109. Tel. 617-227-2087. Fax. 617-723-8524. www.insurancelibrary.org — The
Insurance Library Association of Boston founded in 1887, is a nonprofit insurance association
that has an extensive insurance library on all lines of insurance.
INSURANCE REGULATORY EXAMINERS SOCIETY • 1821 University Ave W, Ste S256,
St. Paul, MN 55104. Tel. 651-917-6250. Fax. 651-917-1835. www.go-ires.org — Nonprofit
professional and educational association for examiners and other professionals working in
insurance industry.
INSURANCE RESEARCH COUNCIL (A DIVISION OF THE INSTITUTES) • 718
Providence Road, Malvern, PA 19355-0725. Tel. 610-644-2212. Fax. 610-640-5388.
www.insurance-research.org/ — Provides research relevant to public policy issues affecting risk
and insurance.
INSURED RETIREMENT INSTITUTE • 1101 New York Avenue NW, Suite 825,
Washington, DC 20005. Tel. 202-469-3000. Fax. 202-469-3030. www.irionline.org — Source of
knowledge pertaining to annuities, insured retirement products and retirement planning;
provides educational and informational resources. Formerly the National Association for
Variable Annuities (NAVA).
INTEGRATED BENEFITS INSTITUTE • 595 Market Street, Suite 810, San Francisco, CA
94105. Tel. 415-222-7280. Fax. 415-222-7281. www.ibiweb.org — A private, nonprofit
organization that provides research, discussion and analysis, data services and legislative review
to measure and improve integrated benefits programs, enhance efficiency in delivery of all
employee-based benefits and promote effective return-to-work.
INTERMEDIARIES AND REINSURANCE UNDERWRITERS ASSOCIATION, INC. •
971 Route 202 North, Branchburg, NJ 08876. Tel. 908-203-0211. www.irua.com — Educational
association to encourage the exchange of ideas among reinsurers worldwide writing principally
treaty reinsurance.
INTERNATIONAL ASSOCIATION OF INSURANCE FRAUD AGENCIES, INC. • PO
Box 10018, Kansas City, MO 64171. Tel. 816-204-7360. www.iaifa.org — An international
association opening the doors of communication, cooperation and exchange of information in
the fight against sophisticated global insurance and related financial insurance fraud.
INTERNATIONAL ASSOCIATION OF INSURANCE PROFESSIONALS • 8023 East
63rd Place, Suite 540, Tulsa, OK 74133. Tel. 800-766-6249. Fax. 918-294-3711.
www.internationalinsuranceprofessionals.org — Provides insurance education, skills
enhancement and leadership development to its members.
A Firm Foundation updates at www.iii.org/firm-foundation/ 86
INTERNATIONAL ASSOCIATION OF SPECIAL INVESTIGATION UNITS • 3230
Maiden Lane, Suite 5, Manchester, MD 21102. Tel. 443-507-6500. Fax. 443-507-6519.
https://www.iasiu.org/ — Group whose goals are to promote a coordinated effort within the
industry to combat insurance fraud and to provide education and training for insurance
investigators.
*INTERNATIONAL INSURANCE SOCIETY, INC. • 101 Murray Street, New York, NY
10007. Tel. 212-277- 5171. Fax. 212-277-5172. www.iisonline.org — A nonprofit membership
organization whose mission is to facilitate international understandings, the transfer of ideas
and innovations, and the development of personal networks across insurance markets through a
joint effort of leading executives and academics throughout the world.
*ISO, A VERISK ANALYTICS COMPANY • 545 Washington Boulevard, Jersey City, NJ
07310-1686. Tel. 800-888-4476; 201-469-2000. Fax. 201-748-1472; 201-469-4006.
www.iso.com — A leading source of information about property/casualty insurance risk.
Provides statistical, actuarial, underwriting and claims information; policy language;
information about specific locations; fraud identification tools; and technical services. Products
help customers protect people, property and financial assets.
IVANS (INSURANCE VALUE ADDED NETWORK SERVICES) • 225 High Ridge Rd.,
Stamford, CT 06905. Tel. 800-288-4826. Fax. 203-698-7299. www.ivans.com — An industry-
sponsored organization offering a data communications network linking agencies, companies
and providers of data to the insurance industry.
KAREN CLARK & COMPANY • 2 Copley Place, Tower 2, 1st Floor, Boston, MA 02116. Tel.
617.423.2800. www.karenclarkandco.com/home/page/home.aspx — Catastrophe risk
assessment and modeling firm.
KINETIC ANALYSIS CORPORATION • 8070 Georgia Avenue, Suite 413, Silver Spring, MD
20910. Tel. 240-821-1202. www.kinanco.com — Specializes in estimating the impact of natural
and man-made hazards on the structures and the economy for clients in engineering, land
development, and risk management.
LATIN AMERICAN AGENTS ASSOCIATION • PO Box 1239, Montebello, CA 90640. Tel.
323-535-3290. Fax. 323-622-1396. www.latinagents.com — An independent group of Hispanic
agents and brokers, whose goal is to educate, influence and inform the insurance community
about the specific needs of the Latino community in the United States.
LATIN AMERICAN ASSOCIATION OF INSURANCE AGENCIES • PO Box 520844,
Miami, FL 33152- 0844. Tel. 305-477-1442. Fax. 305-477-5298. www.laaia.com — An
association of insurance professionals whose purpose is to protect the rights of its members,
benefit the consumer through education, provide information and networking services, and
promote active participation in the political environment and community service.
LIFE INSURANCE SETTLEMENT ASSOCIATION • 225 South Eola Drive, Orlando, FL
32801. Tel. 407-894-3797. www.thevoiceoftheindustry.com — Promotes the development,
integrity and reputation of the life settlement industry.
A Firm Foundation updates at www.iii.org/firm-foundation/ 87
*LIGHTNING PROTECTION INSTITUTE • PO Box 99, Maryville, MO 64468. Tel. 800-
488-6864. www.lightning.org — Not-for-profit organization dedicated to ensuring that its
members’ lightning protection systems are the best possible quality in design, materials and
installation.
LIMRA INTERNATIONAL • 300 Day Hill Road, Windsor, CT 06095. Tel. 800-235-4672.
www.limra.com — Worldwide association providing research, consulting and other services to
insurance and financial services companies in more than 60 countries. LIMRA helps its member
companies maximize their marketing effectiveness.
LOMA (LIFE OFFICE MANAGEMENT ASSOCIATION) • 2300 Windy Ridge Parkway,
Suite 600, Atlanta, GA 30339-8443. Tel. 770-951-1770. www.loma.org — Worldwide association
of insurance companies specializing in research and education, with a primary focus on home
office management.
LOSS EXECUTIVES ASSOCIATION • PO Box 37, Tenafly, NJ 07670. Tel. 201-569-3346.
www.lossexecutives.com — A professional association of property loss executives providing
education to the industry.
MARSHALL & SWIFT • 777 South Figueroa St., 12th Floor, Los Angeles, CA 90017. Tel. 800-
421-8042. www.msbinfo.com — Building cost research company providing data and estimating
technologies to the property insurance industry.
MIB, INC. • 50 Braintree Hill Park, Suite 400, Braintree, MA 02184-8734. Tel. 781-751-6330.
www.mibsolutions.com/lost-life-insurance/ — Database of individual life insurance applications
processed since 1995.
MICHAEL WHITE ASSOCIATES • 823 King of Prussia Road, Radnor, PA 19087. Tel. 610-
254-0440. Fax. 610-254-5044. www.bankinsurance.com — Consulting firm that helps clients
plan, develop and implement bank insurance sales programs. Conducts research on and
benchmarks performance of bank insurance and investment fee income activities.
MOODY’S INVESTORS SERVICE • 7 World Trade Center at 250 Greenwich Street, New
York, NY 10007. Tel. 212-553-1653. www.moodys.com — Global credit analysis and financial
information firm.
MORTGAGE INSURANCE COMPANIES OF AMERICA (MICA) • Washington, DC Tel.
202-682-2683. Fax. 202-842-9252. www.privatemi.com — Represents the private mortgage
insurance industry. MICA provides information on related legislative and regulatory issues, and
strives to enhance understanding of the role private mortgage insurance plays in housing
Americans.
NATIONAL AFRICAN-AMERICAN INSURANCE ASSOCIATION • 1718 M Street NW,
PO Box 1110, Washington, DC 20036. Tel. 866-56-NAAIA. Fax. 202-563-9743. www.naaia.org
— NAAIA fosters the nationwide presence, participation and long-term financial success of
African-American insurance professionals within the greater insurance community and provides
its members and the insurance industry a forum for sharing information and ideas that enhance
business and professional development.
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NATIONAL ARBITRATION FORUM • PO Box 50191, Minneapolis, MN 55405-0191. Tel.
800-474-2371. Fax. 952-345-1160. www.adrforum.com/ — A leading neutral administrator of
arbitration, mediation and other forms of alternative dispute resolution worldwide.
NATIONAL ASSOCIATION OF HEALTH UNDERWRITERS • 1212 New York Avenue
NW, Suite 1100, Washington, DC 20005. Tel. 202-552-5060. Fax. 202-747-6820.
www.nahu.org — Professional association of people who sell and service disability income, and
hospitalization and major medical health insurance companies.
NATIONAL ASSOCIATION OF INDEPENDENT INSURANCE ADJUSTERS • 1880
Radcliff Ct., Tracy, CA 95376. Tel. 209-832-6962. Fax. 209-832-6964. www.naiia.com —
Association of claims adjusters and firms operating independently on a fee basis for all
insurance companies.
NATIONAL ASSOCIATION OF INSURANCE AND FINANCIAL ADVISORS • 2901
Telestar Court, Falls Church, VA 22042-1205. Tel. 877-866-2432; 703-770-8100. Fax. 703-770-
8224. www.naifa.org — Professional association representing health and life insurance agents.
NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS • 1100 Walnut Street,
Suite 1500, Kansas City, MO 64106-2197. Tel. 816-842-3600. Fax. 816-783-8175. www.naic.org
— Organization of state insurance commissioners to promote uniformity in state supervision of
insurance matters and to recommend legislation in state legislatures.
NATIONAL ASSOCIATION OF MUTUAL INSURANCE COMPANIES (NAMIC) • 3601
Vincennes Road, Indianapolis, IN 46268. Tel. 317-875-5250. Fax. 317-879-8408.
www.namic.org — National property/casualty insurance trade and political advocacy
association.
NATIONAL ASSOCIATION OF PROFESSIONAL INSURANCE AGENTS • 400 North
Washington Street, Alexandria, VA 22314-2353. Tel. 703-836-9340. Fax. 703-836-1279.
www.pianet.com — Trade association of independent insurance agents.
NATIONAL ASSOCIATION OF PROFESSIONAL SURPLUS LINES OFFICES, LTD. •
200 Northeast 54th Street, Suite 200, Kansas City, MO 64118. Tel. 816-741-3910. Fax. 816-741-
5409. www.napslo.org — Professional association of wholesale brokers, excess and surplus lines
companies, affiliates and supporting members.
NATIONAL ASSOCIATION OF SURETY BOND PRODUCERS (NASBP) • 1140 19th
Street, Suite 800, Washington, DC 20036-5104. Tel. 202-686-3700. Fax. 202-686-3656.
www.nasbp.org — NASBP members are professionals who specialize in providing surety bonds
for construction and other commercial purposes to companies and individuals needing the
assurance offered by surety bonds.
*NATIONAL CONFERENCE OF INSURANCE GUARANTY FUNDS • 300 North
Meridian Street, Suite 1020, Indianapolis, IN 46204. Tel. 317-464-8199. Fax. 317-464-8180.
www.ncigf.org — Advisory organization to the state guaranty fund boards; gathers and
disseminates information regarding insurer insolvencies.
NATIONAL CONFERENCE OF INSURANCE LEGISLATORS • 385 Jordan Road, Troy,
NY 12180. Tel. 518-687-0178. Fax. 518-687-0401. www.ncoil.org — Organization of state
legislators whose main area of public policy concern is insurance and insurance regulation.
A Firm Foundation updates at www.iii.org/firm-foundation/ 89
NATIONAL CROP INSURANCE SERVICES, INC. • 8900 Indian Creek Parkway, Suite
600, Overland Park, KS 66210-1567. Tel. 913-685-2767. Fax. 913-685-3080. www.ag-risk.org —
National trade association of insurance companies writing hail insurance, fire insurance and
insurance against other weather perils to growing crops, with rating and research services for
crop-hail and rain insurers.
NATIONAL FIRE PROTECTION ASSOCIATION • One Batterymarch Park, Quincy, MA
02169-7471. Tel. 617-770-3000. Fax. 617-770-0700. www.nfpa.org — Independent, nonprofit
source of information on fire protection, prevention and suppression. Develops and publishes
consensus fire safety standards; sponsors national Learn Not to Burn campaign.
NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION (NHTSA) • 1200 New
Jersey Avenue SE, West Building, Washington, DC 20590. Tel. 888-327-4236.
www.nhtsa.dot.gov — Carries out programs and studies aimed at reducing economic losses in
motor vehicle crashes and repairs.
NATIONAL INDEPENDENT STATISTICAL SERVICE • 3601 Vincennes Road, PO Box
68950, Indianapolis, IN 46268. Tel. 317-876-6200. Fax. 317-876-6210. www.niss-stat.org —
National statistical agent and advisory organization for all lines of insurance, except workers
compensation.
*NATIONAL INSURANCE CRIME BUREAU • 1111 East Touhy Avenue, Suite 400, Des
Plaines, IL 60018. Tel. 800-447-6282; 847-544-7000. Fax. 847-544-7100. www.nicb.org — A
not-for-profit organization dedicated to combating insurance fraud and vehicle theft.
NATIONAL ORGANIZATION OF LIFE AND HEALTH INSURANCE GUARANTY
ASSOCIATIONS (NOLHGA) • 13873 Park Center Road, Suite 329, Herndon, VA 20171. Tel.
703-481-5206. Fax. 703-481-5209. www.nolhga.com — A voluntary association composed of the
life and health insurance guaranty associations of all 50 states, the District of Columbia and
Puerto Rico.
NATIONAL RISK RETENTION ASSOCIATION • 16133 Ventura Blvd., Suite 1055, Encino,
CA 91436. Tel. 800-928-5809. Fax. 800-421-5981. www.nrra-usa.org — The voice of risk
retention group and purchasing group liability insurance programs, organized pursuant to the
Federal Liability Risk Retention Act.
NATIONAL SAFETY COUNCIL • 1121 Spring Lake Drive, Itasca, IL 60143-3201. Tel. 630-
285-1121. Fax. 630-285-1315. www.nsc.org — Provides national support and leadership in the
field of safety, publishes safety material and conducts public information and publicity
programs.
NATIONAL STRUCTURED SETTLEMENTS TRADE ASSOCIATION • 1100 New York
Avenue NW, Suite 750W, Washington, DC 20005. Tel. 202 289 4004. www.nssta.com — Trade
association representing consultants, insurers and others who are interested in the resolution
and financing of tort claims through periodic payments.
*NCCI HOLDINGS, INC. • 901 Peninsula Corporate Circle, Boca Raton, FL 33487. Tel. 561-
893-1000. Fax. 561-893-1191. www.ncci.com — Develops and administers rating plans and
systems for workers compensation insurance.
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NEIGHBORWORKS AMERICA • 1325 G Street NW, Suite 800, Washington, DC 20005-
3100. Tel. 202-220-2300. Fax. 202-376-2600. www.nw.org — The goal of this group is to
develop partnerships between the insurance industry and NeighborWorks organizations to
better market the products and services of both, for the benefit of the customers and
communities they serve.
NEW YORK ALLIANCE AGAINST INSURANCE FRAUD • 1450 Western Ave., Albany,
NY 12203. Tel. 518-432-3576. Fax. 518-463-8656. www.fraudny.com — A cooperative effort of
insurance companies in New York State to educate the industry about the costs of insurance
fraud, the many forms is can take and what can be done to fight it.
*NEW YORK INSURANCE ASSOCIATION, INC. • 130 Washington Ave., Albany, NY
12210. Tel. 518-432-4227. Fax. 518-432-4220. www.nyia.org — Domestic & Non-Domestic
Property/Casualty Companies Operations: Lobbying
NEW YORK PROPERTY INSURANCE UNDERWRITING ASSOCIATION • 100
William St., 4th Fl., New York, NY 10038. Tel. 212-208-9700. Fax. 212-344-9879.
www.nypiua.com — Provides basic property insurance for New York State residents not able to
obtain the coverage through the voluntary market. Administers the C-MAP and FAIR Plan.
NONPROFIT RISK MANAGEMENT CENTER • 15 North King Street, Suite 203, Leesburg,
VA 20176. Tel. 202-785-3891. Fax. 703-443-1990. www.nonprofitrisk.org — Conducts research
and education on risk management and insurance issues of special concern to nonprofit
organizations.
NORTH AMERICAN PET HEALTH INSURANCE ASSOCIATION • 46 Shopping Plaza,
Chagrin Falls, OH 44022. Tel. 877-962-7442. www.naphia.org — Group whose members work
collaboratively towards establishing and maintaining universal and professional standards for
terminology, best practices, quality and ethics in the pet health industry.
OPIC • 1100 New York Avenue NW, Washington, DC 20527. Tel. 202-336-8400. www.opic.gov
— Self-sustaining U.S. government agency providing political risk insurance and finance
services for U.S. investment in developing countries.
PHYSICIAN INSURERS ASSOCIATION OF AMERICA • 2275 Research Boulevard, Suite
250, Rockville, MD 20850. Tel. 301-947-9000. Fax. 301-947-9090. www.thepiaa.org — Trade
association representing physicianowned mutual insurance companies that provide medical
malpractice insurance.
PROFESSIONAL LIABILITY UNDERWRITING SOCIETY (PLUS) • 5353 Wayzata
Boulevard, Suite 600, Minneapolis, MN 55416. Tel. 952-746-2580; 800-845-0788. Fax. 952-
746-2599. www.plusweb.org — An international, nonprofit association that provides educational
opportunities and programs to enhance the professionalism of its members.
PROPERTY CASUALTY INSURERS ASSOCIATION OF AMERICA (PCI) • 8700 West
Bryn Mawr, Suite 1200S, Chicago, IL 60031-3512. Tel. 847-297-7800. Fax. 847-297-5064.
www.pciaa.net — Serves as a voice on public policy issues and advocates positions that foster a
competitive market place for property/casualty insurers and insurance consumers.
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PROPERTY INSURANCE PLANS SERVICE OFFICE • 27 School Street, Suite 302,
Boston, MA 02108. Tel. 617-371-4175. Fax. 617-371-4177. www.pipso.com — Provides technical
and administrative services to state property insurance plans.
PROPERTY LOSS RESEARCH BUREAU • 3025 Highland Parkway, Suite 800, Downers
Grover, IL 60515. Tel. 630-724-2200. Fax. 630-724-2260. www.plrb.org — Property/casualty
trade organization that promotes productivity and efficiency in the property and liability loss
and claim adjustment processes, disseminates information on property and liability issues and
fosters education and new and beneficial developments within the industry.
PUBLIC RISK MANAGEMENT ASSOCIATION • 700 S. Washington St., Suite 218,
Alexandria, VA 22314. Tel. 703-528-7701. Fax. 703-739-0200. www.primacentral.org —
Membership organization representing risk managers in state and local public entities.
RAND INSTITUTE FOR CIVIL JUSTICE • 1776 Main Street, PO Box 2138, Santa Monica,
CA 90407-2138. Tel. 310-393-0411. Fax. 310-393-4818. www.rand.org — Organization formed
within The Rand Corporation to perform independent, objective research and analysis
concerning the civil justice system.
REINSURANCE ASSOCIATION OF AMERICA • 1445 New York Ave. NW, 7th Fl.,
Washington, DC 20005. Tel. 202-638-3690. Fax. 202-638-0936. www.reinsurance.org — Trade
association of property/casualty reinsurers; provides legislative services for members.
RISK AND INSURANCE MANAGEMENT SOCIETY, INC. • 1065 Avenue of the
Americas, 13th Floor, New York, NY 10018. Tel. 212-286-9292. www.rims.org — Organization of
corporate buyers of insurance, which makes known to insurers the insurance needs of business
and industry, supports loss prevention and provides a forum for the discussion of common
objectives and problems.
RISK MANAGEMENT SOLUTIONS, INC. • 7575 Gateway Boulevard, Newark, CA 94560.
Tel. 510-505-2500. Fax. 510-505-2501. www.rms.com — Provides products and services for the
quantification and management of catastrophe risk associated with natural perils as well as
products for weather derivatives and enterprise risk management for the property/casualty
insurance industry.
SCHOOL OF RISK MANAGEMENT, INSURANCE AND ACTUARIAL SCIENCE OF
THE TOBIN COLLEGE OF BUSINESS AT ST. JOHN’S UNIVERSITY (FORMERLY
THE COLLEGE OF INSURANCE) • 101 Murray Street, New York, NY 10007. Tel. 212-277-
5198. www.stjohns.edu/academics/graduate/tobin/srm — Insurance industry-supported college
providing a curriculum leading to bachelor’s and master’s degrees in business administration,
financial management of risk, insurance finance and actuarial science. The Kathryn and Shelby
Cullom Davis Library (212-217-5135) provides services, products and resources to its members.
SELF-INSURANCE INSTITUTE OF AMERICA • PO Box 1237, Simpsonville, SC 29681.
Tel. 800-851-7789. Fax. 864-962-2483. www.siia.org — Organization that fosters and promotes
alternative methods of risk protection.
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SNL FINANCIAL LC • One SNL Plaza, 212 7th Street NE, Charlottesville, VA 22902. Tel. 434-
977-1600. Fax. 434-977-4466. www.snl.com — Research firm that collects, standardizes and
disseminates all relevant corporate, financial, market and M&A data as well as news and
analytics for the industries it covers: banking, specialized financial services, insurance, real
estate and energy.
SOCIETY OF ACTUARIES • 475 North Martingale Road, Suite 600, Schaumburg, IL 60173.
Tel. 847-706-3500. Fax. 847-706-3599. www.soa.org — An educational, research and
professional organization dedicated to serving the public and its members. The Society’s vision
is for actuaries to be recognized as the leading professionals in the modeling and management of
financial risk and contingent events.
SOCIETY OF CERTIFIED INSURANCE COUNSELORS • PO Box 27027, Austin, TX
78755-2027. Tel. 800-633-2165. Fax. 512-349-6194. www.scic.com — National education
program in property, liability and life insurance, with a continuing education requirement upon
designation.
SOCIETY OF FINANCIAL EXAMINERS • 12100 Sunset Hills Rd., Suite 130, Reston, VA
20190-3221. Tel. 703-234-4140. Fax. 888-436-8686. www.sofe.org — Professional society for
examiners of insurance companies, banks, savings and loans, and credit unions.
SOCIETY OF INSURANCE RESEARCH • 631 Eastpointe Drive, Shelbyville, IN 46176. Tel.
317-398-3684. www.sirnet.org — Stimulates insurance research and fosters exchanges among
society members on research methodology.
SOCIETY OF INSURANCE TRAINERS AND EDUCATORS • 1821 University Ave. W, Ste
S256, St. Paul, MN 55104. Tel. 651-999-5354. Fax. 651-917-1835. www.insurancetrainers.org —
Professional organization of trainers and educators in insurance.
STANDARD & POOR’S RATING GROUP • 55 Water Street, New York, NY 10041. Tel. 212-
438-2000. www.standardandpoors.com — Monitors the credit quality of bonds and other
financial instruments of corporations, governments and supranational entities.
SURETY & FIDELITY ASSOCIATION OF AMERICA (SFAA) • 1101 Connecticut Avenue
NW, Suite 800, Washington, DC 20036. Tel. 202-463-0600. Fax. 202-463-0606.
www.surety.org — Statistical, rating, development and advisory organization for surety
companies.
THE ACTUARIAL FOUNDATION • 475 North Martingale Road, Suite 600, Schaumburg, IL
60173-2226. Tel. 847-706-3535. Fax. 847-706-3599. www.actuarialfoundation.org — Develops,
funds and executes education and research programs that serve the public by harnessing the
talents of actuaries.
THE AMERICAN COLLEGE • 270 South Bryn Mawr Avenue, Bryn Mawr, PA 19010. Tel.
610-526-1000. www.theamericancollege.edu — An independent, accredited nonprofit
institution, originally The American College of Life Underwriters. Provides graduate and
professional education in insurance and other financial services.
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THE COMMITTEE OF ANNUITY INSURERS • c/o Davis & Harman LLP, 1455
Pennsylvania Avenue NW, Suite 1200, Washington, DC 20004. Tel. 202-347-2230. Fax. 202-
393-3310. www.annuity-insurers.org — Group whose goal is to address federal legislative and
regulatory issues relevant to the annuity industry and to participate in the development of
federal tax and securities policies regarding annuities.
THE FINANCIAL SERVICES ROUNDTABLE • 1001 Pennsylvania Avenue NW, Suite 500
South, Washington, DC 20004. Tel. 202-289-4322. Fax. 202-628-2507. www.fsround.org — A
forum for U.S. financial industry leaders working together to determine and influence the most
critical public policy concerns related to the integration of the financial services.
THE INSTITUTES • 720 Providence Road, Suite 100, Malvern, PA 19355-3433. Tel. 800-644-
2101. Fax. 610-640-9576. www.aicpcu.org — Provides educational solutions for the risk
management and property/ casualty insurance industry, including the CPCU designation
program and associate designation programs in areas such as claims, risk management,
underwriting and reinsurance as well as introductory and foundation programs and continuing
education courses for licensed insurance professionals and adjusters.
THE LIFE AND HEALTH INSURANCE FOUNDATION FOR EDUCATION • 1655
North Fort Myer Drive, Suite 610, Arlington, VA 22209. Tel. 888-LIFE-777. Fax. 202-464-5011.
lifehappens.org — Nonprofit organization dedicated to addressing the public’s growing need for
information and education about life, health, disability and long-term care insurance.
THE STREET.COM • 14 Wall Street, 15th Floor, New York, NY 10005.
www.thestreetratings.com/ — Evaluates the strength of insurance and financial services firms.
UNDERWRITERS’ LABORATORIES, INC. • 2600 N.W. Lake Rd., Camas, WA 98607-
8542. Tel. 360-817-5500. www.ul.com — Investigates and tests electrical materials and other
products to determine that fire prevention and protection standards are being met.
WEATHER RISK MANAGEMENT ASSOCIATION (WRMA) • 529 14th Street NW, Suite
750, Washington, DC 20045. Tel. 202-289-3800. Fax. 202-591-2445. www.wrma.org — Serves
the weather risk management industry by providing forums for discussion and interaction with
others associated with financial weather products.
*WISCONSIN INSURANCE ALLIANCE • 44 E. Mifflin St., Suite 901, Madison, WI 53703-
2888. Tel. 608-255-1749. Fax. 608-255-2178. www.wial.com — A state trade association of
property/casualty insurance companies conducting legislative affairs and public relations on
behalf of the industry.
*WORKERS COMPENSATION RESEARCH INSTITUTE • 955 Massachusetts Avenue,
Cambridge, MA 02139. Tel. 617-661-9274. Fax. 617-661-9284. www.wcrinet.org — A
nonpartisan, not-for-profit membership organization conducting public policy research on
workers’ compensation, healthcare and disability issues. Members include employers, insurers,
insurance regulators and state regulatory agencies, as well as several state labor organizations.
A Firm Foundation updates at www.iii.org/firm-foundation/ 94
I. I. I. Member Companies
AAA Northern California, Nevada & Utah
Insurance Exchange
ACE USA
ACUITY
AEGIS Insurance Services Inc.
AIG
Allianz of America, Inc.
Allied World Assurance Company
Allstate Insurance Group
ALPS Corporation
American Agricultural Insurance Company
American Family Insurance
American Integrity Insurance Company
American Reliable Insurance
Amerisafe
Amerisure Insurance Companies
Arch Insurance Group
Arthur J. Gallagher
Aspen Re
Beacon Mutual Insurance Company
Bituminous Insurance Companies
Catlin U.S.
Century Surety Company
Chesapeake Employers’ Insurance Company
Chubb Group of Insurance Companies
Church Mutual Insurance Company
The Concord Group
COUNTRY Financial
CNA
CUMIS Insurance Society, Inc.
DeSmet Farm Mutual Insurance Company
of South Dakota
Dryden Mutual Insurance Company
EMC Insurance Companies
Enumclaw Insurance Group
Erie Insurance Group
Farm Bureau Town and Country Insurance
Company of Missouri
Farmers Group, Inc.
FM Global
GEICO
Gen Re
Germania Insurance
Grange Insurance Association
Grange Insurance Companies
GuideOne Insurance
The Hanover Insurance Group Inc.
The Harford Mutual Insurance Companies
The Hartford Financial Services Group
A Firm Foundation updates at www.iii.org/firm-foundation/ 95
The Horace Mann Companies
Ironshore Insurance Ltd.
Kemper Corporation
Liberty Mutual Group
Lloyd’s
Lockton Companies
Magna Carta Companies
MAPFRE USA
Marsh Inc.
MetLife Auto & Home
Michigan Millers Mutual Insurance Company
Millville Mutual Insurance Company
Missouri Employers Mutual Insurance
Motorists Insurance Group
Munich Re
Nationwide
New York Central Mutual Fire Insurance Company
The Norfolk & Dedham Group
Ohio Mutual Insurance Group
OneBeacon Insurance Group
PartnerRe
Pennsylvania Lumbermens Mutual Insurance
Company
Providence Mutual Fire Insurance Company
QBE Regional Insurance
Scor U.S. Corporation
SECURA Insurance Companies
Selective Insurance Group
State Auto Insurance Companies
State Compensation Insurance Fund of California
State Farm Mutual Automobile Insurance
Company
The Sullivan Group
Swiss Reinsurance America Corporation
Travelers
USAA
Utica National Insurance Group
Westfield Group
Willis
W. R. Berkley Corporation
XL America Group
Zurich North America
Associate Members
Crawford and Company
The Crichton Group
Deloitte
Farmers Mutual Fire Insurance of Tennessee
Florida Property and Casualty Association
A Firm Foundation updates at www.iii.org/firm-foundation/ 97
Insurance Information Institute
110 William Street
New York, NY 10038
Tel. 212-346-5500. Fax. 212-732-1916. www.iii.org
President – Robert P. Hartwig, Ph.D., CPCU – bobh@iii.org
Executive Vice President – Andréa C. Basora – [email protected]
Senior Vice President and Chief Communications Officer – Jeanne Salvatore –
Senior Vice President and Chief Economist – Steven N. Weisbart, Ph.D., CLU – stevenw@iii.org
RESEARCH AND INFORMATION SERVICES
Chief Actuary and Director of Research and Information Services – James Lynch, FCAS,
MAAA – jamesl@iii.org
Senior Editor – Neil Liebman – neill@iii.org
Research and Production – Mary-Anne Firneno – mary-ann[email protected]
Information Specialist – Maria Sassian – [email protected]
Production Assistant – Katja Charlene Lewis – [email protected]
Special Consultant – Ruth Gastel, CPCU – [email protected]
Publications Orders – Daphne Gerardi – [email protected]
DIGITAL COMMUNICATIONS
Director – Digital Communications – James P. Ballot – jame[email protected]
Director – Technology and Web Production – Shorna Lewis – [email protected]
Manager – Digital Media – Alba Rosario – [email protected]
MEDIA
New York:
Vice President – Media Relations – Michael Barry – michae[email protected]
Vice President – Communications – Loretta Worters – loretta[email protected]
Terms + Conditions blog – Claire Wilkinson – [email protected]
Impact Magazine –Diane Portantiere – [email protected]
Administrative Assistant – Rita El-Hakim – [email protected]
Administrative Assistant – Lilia Giordano – [email protected]
West Coast:
Insurance Information Network of California:
Tel. 213-624-4462. Fax. 213-624-4432.
REPRESENTATIVES
Davis Communications – William J. Davis, Atlanta – [email protected]
Tel. 770-321-5150. Fax. 770-321-5150.
Hispanic Press Officer – Elianne González, Miami – elian[email protected]
Tel. 954-389-9517.
Florida Representative – Lynne McChristian, Tampa – lynn[email protected]
Tel. 813-480-6446. Fax. 813-915-3463.
A Firm Foundation updates at www.iii.org/firm-foundation/ 98
Insurance Information Institute
Board of Directors
Terrence W. Cavanaugh, President & Chief Executive Officer, Erie Insurance, Chairman
Evan G. Greenberg, Chairman & Chief Executive Officer, ACE Ltd.
Andrew Torrance, President & Chief Executive Officer, Fireman’s Fund Insurance Companies,
Allianz of America/Fireman’s Fund
Thomas J. Wilson, Chairman, President & Chief Executive Officer, Allstate Insurance Company
Jack Salzwedel, Chairman & Chief Executive Officer, American Family Insurance
Peter Hancock, Chief Executive Officer, AIG Property Casualty
Vince Lamb, President & Chief Executive Officer, Bituminous Insurance Companies
John D. Finnegan, Chairman, President & Chief Executive Officer, The Chubb Corporation
Thomas F. Motamed, Chairman & Chief Executive Officer, CNA Corporation
Bruce G. Kelley, President & Chief Executive Officer, EMC Insurance Companies
Olza M. Nicely, Chairman, President & Chief Executive Officer, GEICO
Berto Sciolla, Executive Vice President, General Re
Frederick H. Eppinger, President & Chief Executive Officer, The Hanover Insurance Group, Inc.
Michael L. Browne, President & Chief Executive Officer, Harleysville Insurance
Andy Napoli, President – Consumer Markets, The Hartford Financial Services Group, Inc.
Donald G. Southwell, Chairman, President & Chief Executive Officer, Kemper Corporation
David H. Long, President & Chief Executive Officer, Liberty Mutual Insurance Group
Hank Watkins, President, Lloyd’s America
Daniel S. Glaser, President & Chief Executive Officer, Marsh & McLennan Companies, Inc.
William D. Moore, President, MetLife Auto & Home
Pina Albo, President – Reinsurance, Munich Re
Stephen S. Rasmussen, Chief Executive Officer, Nationwide
T. Michael Miller, President & Chief Executive Officer, OneBeacon Insurance Group
Gregory E. Murphy, Chairman & Chief Executive Officer, Selective Insurance Group
Robert P. Restrepo, Jr., Chairman, President & Chief Executive Officer, State Auto Insurance
Companies
Edward B. Rust Jr., Chairman & Chief Executive Officer, State Farm Automobile Insurance
Company
J. Eric Smith, President & Chief Executive Officer, Swiss Re America Holding Corporation
Jay S. Fishman, Chairman & Chief Executive Officer, The Travelers Companies
Kevin Bergner, President – P/C Insurance Group, USAA
J. Douglas Robinson, Chairman & Chief Executive Officer, Utica National Insurance Group
William R. Berkley, Chairman & Chief Executive Officer, W.R. Berkley Corporation
Edward J. Largent, President, Westfield Group
Michael S. McGavick, Chief Executive Officer, XL Capital Ltd.
Mike Foley, Chief Executive Officer, Zurich North America Commercial, Zurich Insurance Group
