This is the 32 edition of the NAIC’s annual Insurance Department Resources Report
The National Association of Insurance Commissions has published Volume II of its annual Insurance Department Resources Report (IDRR). The Report, released in two separate volumes each year, has been published annually for the past 32 years.
While the first of the two-volume report, published in August, focuses on the resources and regulatory activities of the 56 NAIC-member jurisdictions, Volume Two, 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.
A snapshot of 2018
The following is a list of statistics the NAIC noted in the introduction of its report providing an overall snapshot of the Insurance Departments and their resources across the country:
- Premiums increased by 6.6% to $2.4 trillion since 2017.
- The five states with the most premiums written in all lines were, in order of premium volume, California, New York, Texas, Florida and Pennsylvania.
A look at Aggregate Premium Volume and Premium Volume by Line of Business
The following charts take 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 2017: Property/Casualty provides approximately 26.3% of all written premium volume as measured by lines of business, only .1% more than in 2017. Both Health (43.4%) and Life/Annuities (29.2%), however, actually provide more premium volume than Property/Casualty with a combined total of 72.7%.
The top ten states with the most premium written
[pullquote] The top five states accounted for 40.1% of all insurance premiums in
the United States.[/pullquote]When Agency Checklists first started reporting on this report many years ago, Massachusetts ranked within the top 10 states for the most written premium. This fact, however, has changed. In fact, over the past couple of years, we have seen Massachusetts continue to slide in the rankings with respect to the total premium written vis a vis other states. While this might be predictive of the overall state of the Massachusetts insurance industry, Agency Checklists, thinks it otherwise important to note in order to get a sense of the entire marketplace.
With that said, here are the current top 10 state with the most written premiums for 2018:
- California with $340,107,011,165 in premium (Rank last year 1)
- New York with $$184,539,440,377 in premium (Rank last year 2)
- Texas with $175,416,720,952 in premium (Rank last year 3)
- Florida with $167,134,136,027 in premium (Rank last year 4)
- Pennsylvania with $106,033,267,502 in premium (Rank last year 5)
- Ohio with $95,390,536,505 in premium (Rank last year 7)
- Illinois with $85,656,815,110 in premium (Rank last year 6)
- New Jersey with $78,867,647,004 in premium (Rank last year 8)
- Michigan with $71,374,615,833 in premium (Rank last year 10)
- Delaware with $65,036,115,000 in premium (Rank last year 9)
Together, just the top five markets alone accounted for 40.2%, of all insurance premiums in the United States in 2017 and remained unchanged from last year, when their combined total accounted for 40.6% of the total amount of insurance premiums.
Massachusetts in the same spot this year as last in list of states ranked by most written premium
Mirroring its ranking for the past couple of years, Massachusetts slid another spot in 2017 to place as the 12th largest marketplace in the country. It maintained this rank, however in 2018, as the 12th largest marketplace .
As for total premium volume, Massachusetts has premium volume totaling $56,721,795,550 in 2018, up from $53,492,161,175 in 2017, and $52,943,560,858 in 2016. The breakdown of premium by lines of insurance is as follows:
- $21,128,712,487 was written in the Life/Annuities line of business,
- $14,926,651,575 in the Property/Casualty line of business, and
- $20,123,949,766 in Health.
While Massachusetts continues to have no captive insurers, its does have a healthy Excess and Surplus market with a total of $1,143,096,918 in premium volume for 2018. Of that $781,944,832 of that premium was U.S.-based while the remaining $361,152,086 represented Alien Excess and Surplus insurers.
To view Agency Checklists’ look at Volume One of the NAIC’s 2018 Insurance Department Report with respect to Massachusetts, please refer to our August 6, 2019 article entitled, “Massachusetts Division of Insurance Facts, Figures & Statistics For 2018.”