Once again five states – California, New York, Texas, Florida and Pennsylvania – accounted for about 40% of all insurance premiums written across all lines in the United States in 2016.
This according to the National Association of Insurance Commissioners (NAIC), which on Aug. 7 released the second volume of the 30th edition of the Insurance Department Resources Report (IDRR). The two-part annual report is intended to help state insurance departments assess their resources in comparison to other states to help regulate a complex and competitive industry, but in doing so also gives the wider insurance community an interesting overview of key statistics on premium by state and line of business.
The first volume, published in June, included data on staffing, budgeting and examination information. 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.
No surprise that California once again reported the largest 2016 premium, which is $151.4 billion greater than second-ranked New York. Those two states along with Texas, Florida and Pennsylvania comprised roughly 40% of total premiums in 2015 as well. The bottom five states in total premiums collected were South Dakota, Montana, Alaska, Vermont and Wyoming.
Top 10 States by 2016 Premium Volume
- New York
- New Jersey
2016 Premium Volume by Line of Business
42.0% – Health Insurance
30.5% – Life Insurance/Annuities
26.4% – Property/Casualty
0.6% – Title Insurance
0.3% – All Other
0.1% – Risk Retention Group
More key takeaways from the report
• Total premiums collected increased by 4.0% to nearly $2.2 trillion since 2015.
• There was a net increase of 21 domestic insurers from 2015 to 2016. The total number of U.S. domestic insurers increased from 5,926 companies in 2015 to 5,977 companies in 2016.
• Revenues collected from the insurance industry increased 3.27% since 2015 to $23.4 billion in 2016. Total taxes collected increased by 5.0%.
Click here to view the full IDRR Volume Two report