Facts & Figures About the New England Insurance Industry 2023

This is the 36th Edition of the NAIC Annual Report

Key focus of Volume 1

Key facts from this year’s report

Total Number of Domestic Insurers & Regulated Entities in Massachusetts

Trend of Domestic Insurers over the years

A Spotlight on New England insurance industry

Insurance Producers

Domestic Insurers in both Massachusetts & New England by type:

Foreign Insurers in both Massachusetts & New England by type:

2023/2024 Insurance Department Budgets

Revenues, Fees, Fines & Penalties for Massachusetts and the other New England states

Financial, Market Conduct Examinations and Formal Hearings

Licensed Producers

Licensed Producers/Adjusters

Actions Against Producers

Consumer Complaints & Inquiries

The National Association of Insurance Commissioners (“NAIC”) has published its annual Insurance Department Resources Report (IDRR). Divided into two separate “Volumes”, the report has been published annually for the past 36 years.

The IDRR uses data culled from extensive data obtained from NAIC member states. 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 and Antifraud.

Some of the highlights from this year’s survey of NAIC members revealed the following:

There were 5,965 domestic U.S. insurers in 2022, as compared to 5,978 in 2021.
Revenues collected increased 9.8% to $32.7 billion in 2022.
State insurance departments received 282,567 official complaints and 1.5 million inquiries.

The chart below illustrates the number of Domestic Insurers there are in each state throughout the country as of 2022. Focusing on New England, Massachusetts had a total of 84 Domestic Insurers, one more than in 2021 and up from 78 in 2020. Vermont, Connecticut, and Maine each increased in the number of domestic insurers by one, with 108. 103, and 23 respectively, while New Hampshire and Rhode Island’s counts remained the same at 57 and 30.

NAIC-Domestic-Insurers | Agency Checklists

The following data from the NAIC’s IDRR report shows the overall trend in the number of domestic insurers across the country since 2014.

2023 Domestic-Insurers-Chart | Agency Checklists

Turning the to the size and scope of domestic and insurers in both Massachusetts and New England, Agency Checklists has reviewed the IDRR to compile the following graphs which break down the numbers between domestic and foreign insurers in each of the six New England states.

DOMESTIC INSURER TYPE	MA	VT	NH	ME	CT	RI
Life/Annuities	16	1	0	3	26	1
Property/Casualty	47	11	47	11	64	20
Health	18	5	10	9	10	8
Fraternal	2	0	0	0	1	0
Title	1	1	0	0	0	0
Risk Retention Group	0	83	0	0	2	0
Other	0	7	0	0	0	1

FOREIGN INSURER TYPE	MA	VT	NH	ME	CT	RI
Life/Annuities	376	351	328	348	353	387
Property/Casualty	760	758	760	757	775	792
Health	8	20	41	6	3	11
Fraternal	26	15	17	13	35	27
Title	20	17	19	21	21	18
Risk Retention Group	117	55	92	91	104	91
Other	131	37	0	91	0	53

The Massachusetts Division of Insurance is funded 100 percent by a combination of fees and assessments. For the upcoming year, the projected 2024 budget for the Division is $19,000,000, placing it as the 27th largest state budget. Connecticut is 17th with a slated 2024 budget of $36,152,373. New Hampshire is 40th with a projected budget of $13,829,702, followed by Maine ranked 43rd with a budget of $12,021,357 and Vermont ranked 44th with a budget of $11,512,673.

For comparison purposes, the 10 states with the largest insurance department budgets are as follows (in descending order of their 2024 Budget):

2024 RANK	STATE	BUDGET	2023 RANK
1.	California	$259,319,000	1
2.	New York	$184,972,000	2
3.	Texas	$138,408,305	3
4.	Illinois	$87,328,400	8
5.	Florida	$83,377,779	5
6.	Alabama	$77,135,968	6
7.	New Jersey	$76,299,000	7
8.	North Carolina	$54,059,587	4
9.	Arizona	$43,923,243	10
10.	Ohio	$43,316,669	9

The Massachusetts Division of Insurance had revenues totaling $752,927,248 in 2022 as compared to $634,799,685 in 2021. 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 (Rhode Island’s budget did not appear in the IDRR list for this section):

REVENUES	MA	VT	NH	ME	CT
Total Revenues	$752,927,248	$113,520,604	$154,934,863	$151,475,295	$223,230,509
Total Taxes	$496,242,752	$62,655,983	$126,526,378	$107,371,503	$79,205,680
Fees & Assessments Collected	$256,624,141	$50,545,871	$27,949,089	$24,323,022	$140,943,265
Fines & Penalties	$60,355	$318,750	$459,396	$189,800	$3,081,564
Other Revenue	$0	$0	$0	$19,590,970	$0

According to the IDRR “…[f]inancial examinations investigate a company’s accounting methods, procedures and financial statement presentation.” Alternatively, market conduct examinations include reviewing “…agent licensing issues, complaints, types of products sold by the company and/or agents, agent sales practices, rating practices, claims handling, and other market-related aspects of an insurer’s operation.”

The following is a listing of all the market conduct and financial examinationss undertaken by the insurance departments of each New England state during 2022.

A total of 12.5 million individuals (and entities) were licensed to sell insurance in the U.S. during the year 2022. These include Producers, Surplus Lines Brokers, Bail Bonds, and adjusters. As for New England, the following graphs show how many of these producers were in New England over the past year.

Individuals	MA	VT	NH	ME	CT	RI
Resident	29,592	1,925	6,617	7,712	20,298	5,537
Non-Resident	152,079	71,377	110,380	216,617	150,231	107,691
Total	181,671	73,302	116,997	224,329	170,529	113,228

Business Entities	MA	VT	NH	ME	CT	RI
Resident	2,120	156	532	824	1,620	350
Non-Resident	6,023	4,833	7,148	7,618	9,749	4,488
Total	8,143	4,989	7,680	8,442	11,369	4,838

	MA	VT	NH	ME	CT	RI
Producers	224,329	73,302	116,997	224,329	181,898	114,531
Surplus Lines Brokers	2,502	73	3,436	2,502	3,482	2,409
Bail Bonds	0	12	0	0	229	0
Adjusters	20,029	82,305	99,287	20,029	120,321	96,817
Other	0	70	0	0	2,160	2,972

	MA	VT	NH	ME	CT	RI
Number of Fines	5	1	16	1	6	2
Amount of Fines	$5,500	$65,750	$382,000	$750	$16,000	$8,000
Number of Restitutions	0	0	5	0	0	0
Amount of Restitution	$0	$0	$108,787	$0	$0	$0
Other	0	0	1	0	2	1

Financial Examinations
Only

Market Conduct Examinations Only

Combined Financial/Market Conduct Examinations

Total Examinations Completed

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 during 2022: