The Massachusetts Division of Insurance By The Numbers

This is the 28th year that the NAIC has published its annual Insurance Department Resources Report

This month, the National Association of Insurance Commissioners (“NAIC”) released the first of two volumes of its annual Insurance Department Resources Report (IDRR). Each year for the last 28 years, the NAIC has published this report which focuses on the resources and regulatory activities of the 56 NAIC-member jurisdictions. This includes the 50 states plus U.S. Territories like Guam and Puerto Rico.

The first volume of the report, compiled through an extensive survey of each of the NAIC member states, provides information by each state about “…the number of departmental staff and their functions, annual budgets, revenue flows, the number of insurers and insurance producers, and the number of consumer complaints and inquires.” The second volume of the report, which focuses primarily on premium volume by type and by state will be released in August.

Overall statistics from this year’s report

Overall, California reported the largest 2016 budget, coming in at $48.0 million greater than the second largest insurance department budget for 2016 which was New York. Total taxes collected by U.S. Insurance Departments in 2014 increased by 6.8 percent. Total revenues collected from the insurance industry increased 7.08 percent since 2014 to $22 billion. The number of domestic U.S. insurers also increased from 2013 to 2014 from 6,086 to 6,118, but as the graph below shows this number is still smaller than the 2010 numbers for domestic insurers.

As for complaints logged with insurance departments, on average these departments received almost 280,000 official complaints in 2014. They also received some 1.9 million inquiries. And based upon its surveys, the NAIC says there were 2 million licensed resident producers in the U.S. in 2014.

A look at the Massachusetts Division of Insurance numbers

The following data gives a snapshot of the size and scope of the Massachusetts Division of Insurance as of 2014.

From 2010 to 2014, the DOI’s staff has grown by 8.6%, although from 2013 to 2014 the number of staff positions actually decreased in number.
The budget for the DOI in 2016 is $15,381,475 representing a 7.56 percent change in the budget from 2012 to 2016.
In a ranking of states by budget size, Massachusetts ranks 26 on the list. California ranked first with a 2016 budget of $195,551,000 while Guam was number 53 at $616,730. The state with the smallest insurance department budget was Wyoming with a budget of $2,796,134.
Total Revenues for the Mass. DOI in Fiscal Year 2014 were $508,519,570. Total taxes were $358,574,000, Fees & Assessments $147,320,287. Fines and Penalties were $2,625,283.
In 2014, Massachusetts had 86 Domestic Insurers, 1,265 Licensed Foreign Insurers, 21 Domiciled Self-Insured Groups or Pools and 8 Domiciled Purchasing Groups. Here’s an interesting snapshot of the domestic insurers throughout the U.S.:

A breakdown of the 86 Domestic Insurers located in Massachusetts by Types:
- 17 Life/Annuities
- 51 Property/Casualty
- 15 Health
- 2 Fraternals
- 1 Title
- 0 Risk Retention
- 0 Other
A breakdown of the number of Foreign Insurers by Type in Massachusetts:
- 372 Life/Annuities
- 679 Property/Casualty
- 2 Health
- 28 Fraternal
- 16 Title
- 100 Risk Retention Groups
- 68 Other
The DOI conducted a total of 124 examinations in 2014 with 12 being Financial Exams only while 112 were Market Conduct Exams only. It did not complete any Combined Financial/Market Conduct Examinations last year.
As for formal hearings the DOI conducted very few in 2014. There was 1 Acquisition hearing, 2 Rate Hearings, No Examination Reports hearings and 30 hearings categorized as “Other.” The Division also had no Supervisions, Receiverships, nor companies in Run-Off to deal with in 2014.
Massachusetts had a total of 111,527 Individuals who were Licensed Producers in 2014. Of that number 31,372 were Resident Producers while the remaining 80,155 were Non-Resident Producers. In comparison, the Commonwealth has 6,800 Business Entities licensed as producers with 2,503 being Resident and 4,297 as Non-Resident.
Of the 118,527 Licensed Individual and Business Entity Producers in the Commonwealth, 2,099 were categorized as Surplus Lines Brokers, 298 as Adjusters and another 5,801 as “Other.”
DOI actions against licensed producers in 2014 included 14 revocations and 55 Cease & Desist Orders. A total of 41 Fines were imposed by the DOI amounting to $51,150.
As for Consumer Complaints, the Division received 892 Consumer Complaints in 2014 as well as 18,083 insurance-related inquiries.