This is the 28th year that the NAIC has published its annual Insurance Department Resources Report
In June, 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. This past week, the NAIC issued Volume II of its report.
The second volume of the report, compiled through an extensive survey of each of the NAIC member states, focuses on “… premium data [as well as providing]…ratios that demonstrate the relationships between the budget, revenue and premium data.
Overall statistics from this year’s report
According to the NAIC, premiums increased by 5.4% over the past year to $1.9 trillion. The top five states with the most written premium accounted for an impressive 39.5% of all insurance premiums in the United States. The following charts takes a look at aggregate premium volume in the U.S. over the last nine years.
The next chart provides a breakdown of premium volume by line of business in 2014. While Property/Casualty provides almost 30% of all written premium for a state, it is interesting to note that both Health (38.6%) and Life/Annuities (33.0%) each actually provide more premium volume than Property/Casualty.
The top ten states with the most premium written
The NAIC Report notes that premiums across the states increased by 5.4% to $1.9 trillion since 2013. Of note, the top five states with the most written premiums, however, accounted for an impressive 39.5% of all insurance premiums in the United States.
California which reported the largest 2016 budget in Volume I of the NAIC Report, also claimed the top spot as the state with most written premiums in all lines. Rounding out the remaining four of the top five states in 2014 were New York, Texas, Florida and Pennsylvania.
As for the Commonwealth, from 2011 until 2014 overall premium volume increased $3,087,219,697. The total premium level for the Commonwealth for each of those years is as follows:
- 2011: $45,836,320,457
- 2012: $46,899,364,809
- 2013: $48,237,987,566
- 2014: $48,923,540,454
While Massachusetts has no captive insurers, it does have a healthy excess and surplus lines market which the NAIC reports had some $868,007,903 in written premium. Of that, $630,475,377 was from U.S. excess and surplus lines sources, while $237,532,526 was alien.
For the first time in years, however, Massachusetts is not ranked as one of the top ten states by total premiums written in all lines of business. Having held the number ten spot in 2013, Massachusetts relinquished its perch to Delaware in 2014. The following NAIC chart better illustrates which states held the top ten spots both in 2013 and 2014.
For those interested, a copy of Volume II of the NAIC Annual Insurance Department Resources Report can be accessed here.
