Facts & Figures About Massachusetts & New England Insurance Departments & Insurance Producers

This is the 34th year the NAIC has published its annual Insurance Department Resources Report

The National Association of Insurance Commissioners (“NAIC”) has published its annual Insurance Department Resources Report (IDRR). The Report, released in two separate volumes each year, has been published annually for the past 34 years.

The first of the two-volume report focuses on the resources and regulatory activities of the 56 NAIC-member jurisdictions including the 50 states, in addition to U.S. territories like Guam and Puerto Rico. The report is organized into five different sections:

Staffing;
Budget and Funding;
Examination and Oversight;
Insurance Producers; and
Consumer Services and Antifraud.

The following are some of the highlights from the report as it relates to Massachusetts and the rest of the New England insurance marketplaces. The full report which contains many more data points can be obtained from the NAIC.

A snapshot of 2020

The major take-aways from Volume One of the NAIC’s IDRR Report include the following:

There were 5,929 domestic insurers in 2020, a decrease from the 5,947 companies in 2019.
The total number of company examinations completed throughout the country was 1,588 in 2020.
There were 195 liquidations in process by the year-end, alongside 37 rehabilitations in progress.
Licensed resident insurance producers top 2.3 million individuals and 239,585 entities.
Non-resident producers totalled nearly 7.9 million individuals and 506,159 entities.
Revenues increased in 2020, with the total amount collected surging 7.27% to to $29 billion.
As for consumer complaints and inquiries, state insurance departments received over 246,900 official complaints and 1.3 million inquiries.

Number of Domestic Insurers & Regulated Entities in Mass.

The chart below shows how many Domestic Insurers there are in each state. In 2020, Massachusetts had a total of 78 Domestic Insurers, one less than in 2019. Overall, New England had a total of 400 Domestic Insurers.

Domestic Insurers in both Massachusetts & New England by type:

The following graphs break down the numbers between domestic and foreign insurance in each of the New England states.

TYPE OF DOMESTIC INSURER	MASSACHUSETTS	VT	NH	ME	CT	RI
Life/Annuities	16	1	1	3	26	1
Property/Casualty	46	11	49	11	65	20
Health	13	5	10	8	9	7
Fraternal	2	0	0	0	1	0
Title	1	1	0	0	0	0
Risk Retention Group	0	84	0	0	1	0
Other	0	7	0	0	0	1

Foreign Insurers in both Massachusetts & New England by type:

TYPE OF FOREIGN INSURER	VT	NH	ME	CT	RI
Life/Annuities	342	334	344	355	381
Property/Casualty:	720	757	737	762	766
Health	25	33	4	2	9
Fraternal	15	12	12	35	26
Title	15	17	19	22	19
Risk Retention Group	42	84	81	95	81
Other	38	0	0	0	53

Trend of Domestic Insurers over the years

Another interesting and informative graph from the report shows the overall trend in the number of domestic insurers across the country since 2012.

2021/2022 Insurance Department Budgets

The Massachusetts Division of Insurance is funded 100 percent by a combination of fees and assessments. For the upcoming year, the projected 2022 budget for the Division is $14,575,751, placing it as the 36th largest state budget, three spots lower than the 33rd position last year.

In comparison, the ten states with the largest insurance department budgets are as follows (in descending order of their 2022 Budget):

STATES	2022 BUDGET
1. California	$239,569,000
2. New York	$159,923,000
3. Texas	$126,507,580
4. Florida	$91,234,311
5. New Jersey	$76,299,000
6. Alabama	$63,904,890
7. Illinois	$52,212,700
8. North Carolina	$51,941,378
9. Ohio	$43,464,160
10. Michigan	$41,592,900

Revenues for Massachusetts and the other New England states

The Massachusetts Division of Insurance had revenues totaling $630,154,890 in 2020. The breakdown of the Division’s funding and expenses is 80% for Administration and Regulation expenses and the remaining 20% covering Operational expenses. The following is a look at the most recent revenue numbers for both Massachusetts and the other New England states:

REVENUES	MA	VT	NH	ME	CT	RI
Total Revenues	$630,154,890	$90,843,265	$133,910,398	$105,450,427	$239,556,927	$164,290,161
Total Taxes	$420,076,062	$58,893,907	$114,966,219	$87,449,589	$83,956,216	$118,454,634
Fees & Assessments Collected	$209,960,633	$29,707,438	$18,734,679	$17,964,022	$153,868,835	$2,016,915
Fines & Penalties	$118,195	$2,241,920	$209,500	$36,816	$153,868,835	$433,028
Other Revenue	$0	$0	$0	$0	$0	$43,385,584

Financial, Market Conduct Exams and Formal Hearings

The Massachusetts Division of Insurance completed 129 examinations in 2019; in 2020 it conducted 21 Financial Exams and three Market Conduct Exams for a grand total of 24. The following chart takes a look at Massachusetts as compared to the rest of the New England region.

STATE	FINANCIAL EXAMS	MARKET CONDUCT EXAMS	TOTAL
Massachusetts	21	3	24
New Hampshire	19	10	29
Maine	4	0	4
Connecticut	6	57	63
Rhode Island	5	0	5
Vermont	18	1	19

Insurance Producers

The following charts take a look at the percentage of Resident versus Non-Resident Producers, Licensed Producers/Adjusters, and Actions Against Producers as of 2020, for both Massachusetts as well as for the rest of the New England region.

Resident v. Non-Resident Producers

STATE	INDIVIDUAL RESIDENT	INDIVIDUAL NON-RESIDENT	BUSINESS ENTITY RESIDENT	BUSINESS ENTITY NON-RESIDENT
Massachusetts	32,615	126,627	2,346	5,312
New Hampshire	6,501	90,947	574	6,289
Maine	7,492	169,815	840	6,765
Connecticut	20,812	128,975	1,905	9,003
Rhode Island	5,269	81,551	319	3,047
Vermont	3,055	86,293	194	4,356

Licensed Producers/Adjusters

STATE	PRODUCERS	SURPLUS LINE BROKERS	BAIL BONDS	ADJUSTERS	OTHER
Massachusetts	159,242	2,357	0	274	6,447
New Hampshire	97,448	2,985	0	76,655	0
Maine	177,307	2,125	0	16,389	45
Connecticut	159,630	2,984	332	97,903	1,483
Rhode Island	87,444	1,826	0	72,484	2,325
Vermont	87,765	1,489	17	71,124	102

Actions Against Producers

STATE	NUMBER OF FINES	AMOUNT OF FINES	NUMBER OF RESTITUTIONS	AMOUNT OF RESTITUTION	OTHER
Massachusetts	12	$12,900	0	$0	0
New Hampshire	10	$81,000	9	$107,271	2
Rhode Island	0	$0	0	$0	1
Connecticut	12	$13,300	0	$0	6
Maine	3	$52,250	0	$0	1
Vermont	1	$500	1	$318,250	0

Consumer Complaints & Inquiries

In addition to the above information, the NAIC also tracks the number of consumer complaints and inquiries state insurance departments have received over the course of the year. The following is a breakdown of the complaints for Massachusetts as well as for the rest of New England in 2020: