By the Numbers: NAIC Insurance Department Resources Report sheds light on scale of industry

Health insurance still generates the lion’s share of insurance premiums and California still generates by far the most in premiums, as confirmed by the National Association of Insurance Commissioners’ recently released 32nd edition of the Insurance Department Resources Report (IDRR).

The report, published annually in two volumes, is intended to help state insurance departments assess their resources in comparison to other states, but also provides a window into some interesting industry statistics in terms of state insurance department budgets, state rank by most written premiums, and a breakdown of overall insurance sales by line.

The second volume includes admitted premium by state, by line of business; excess and surplus lines premium; and relational statistics including budget as a percent of revenues, budget as a percentage of premiums and revenues as a percentage of premiums.

The first volume, published back in August, included the total number of insurers, producers, and consumer complaints, as well as data on staffing, budgeting and examination information. Here are some statistics of note from the report.

Premium Volume by Line of Business for 2018

  1. Health Insurance (43.4%)
  2. Life/Annuity (29.2%)
  3. Property/Casualty (26.3%)

Top 10 States in Terms of Premiums for 2018

  1. California: $340,107,011,165
  2. New York: $184,539,440,377
  3. Texas: $175,416,720,952
  4. Florida: $167,134,136,027
  5. Pennsylvania: $106,033,267,502
  6. Ohio: $95,390,536,505
  7. Illinois: $85,656,815,110
  8. New Jersey: $78,867,647,004
  9. Michigan: $71,374,615,833
  10. Delaware: $65,036,115,000

Together, just the top five markets alone accounted for 40.6%, of all insurance premiums in the United States in 2018, essentially unchanged from 2017.

More Key Findings

  • There were 5,965 domestic U.S. insurers in 2018.
  • State insurance departments received nearly 290,000 official complaints and more than 1.6 million inquiries.
  • Licensed resident producers numbered nearly 2.2 million individuals and 228,393 entities. Non-resident producers consisted of nearly 6.6 million individuals and 456,908 entities.
  • Budget levels for fiscal year 2020 are expected to increase by 1.62% from 2019 amounts and to increase by 8.60% since 2016. Total projected fiscal year 2020 budgets are more than $1.5 billion.
  • California reported the largest 2020 budget, which is $66.1 million greater than the second-largest 2020 budget (New York). Thirty-six states reported increased 2020 budget amounts from their 2019 reported budgets.
  • Revenues collected from the insurance industry increased 4.88% from 2017 to $25.7 billion in 2018. Total taxes collected increased by 4.45%.
  • Premiums increased by 6.6% to $2.4 trillion since 2017.