The mission of the National Association of Commissioners (NAIC) is to assist state insurance regulators, individually and collectively, in serving the public interest and achieving the following fundamental insurance regulatory goals in a responsive, efficient and cost effective manner, consistent with the wishes of its members. As part of this mission, the NAIC compiles meaningful data about the insurance regulatory community, as well as the insurance industry. Number of Companies The number of insurance companies is provided by state insurance regulators and is compiled annually by the NAIC. Depending on the type of insurance companies provided, they are classified either as property/casualty, life, health, fraternal or title insurers. Insurers with primary corporate headquarters located in a particular state are called domestic insurers. The insurance regulator in the insurer s state of domicile is the primary regulator of that insurer. Foreign insurers are those that are allowed to sell insurance in a state but have a primary legal residence in another state. The state rank represents the rank relative to the state with the largest number of insurers among all states. U.S. s by NAIC Financial ment Type The premium volume from the NAIC financial filing database is direct written premium derived from insurer annual financial statement filings provided to the NAIC. The total is comprised of aggregate premium and deposits generated without any adjustments for reinsurance. This data is grouped according to insurer financial statement filing type (i.e., property/casualty; life, accident and health; health; fraternal organizations; and title). Data in one financial statement type could contain data that seemingly fits better under another line of business. For example, traditional health data may be filed by an insurer using the filing type of life, accident and health. Depending on the regulatory requirements in the state of domicile, captives and risk retention groups are not always required to file with the NAIC and, consequently, this data may not be considered complete. Not all state funds are required to file with the NAIC. fund data contained herein is reported separately and added to the premium volume during composition of this report. Some categories are modified to more closely align with the structure of the NAIC financial statement filings and may not be comparable to data reported in prior years. The state rank represents the rank relative to the state with the largest premium volume among all states. U.S. s by IDRR Type The premium volume from the Department Resources Report (IDRR) is comprised of direct written premium that the states report to the NAIC in compiling the IDRR. This data is grouped by type of business and will not match up with data grouped by NAIC financial statement type. This data includes total direct written premium reported by each state insurance department and does not include premiums from captives or surplus lines business. It was requested that each state include state funds in its premium volume reported. Some companies may report premium data to the state insurance department that are not required to report to the NAIC due to sales volume or other regulatory requirements of their domiciliary state. Department Data The insurance department data is provided by state insurance regulators and is compiled annually by the NAIC. taxes include premium, retaliatory, franchise and income taxes paid by insurers. revenue includes other sources of revenue, such as licensing fees and fines and assessments, as well as total taxes. budget represents the annual operating budget of the state insurance department. employment is the number of full-time state insurance department employees. The state rank represents the rank relative to the state with the largest respective number among all states.
Cost of Regulation The cost of regulation is calculated from data supplied by state insurance regulators and collected from insurers financial filings. It is a ratio that compares the insurance department budget to total premium written in the state. Beginning with the IDRR, insurance budget data no longer includes pass-through funding. Budget figures from and forward were adjusted to reflect this change. For state-specific details, please refer to the IDRR technical notes. Property/Casualty by Line of Business The premiums are from the annual financial statement information that property/casualty insurers file with the NAIC. Property/casualty premium is subdivided into several categories. This data includes information on state funds reported separately and added to the premium volume during composition of this report. The state rank represents the rank relative to the state with the largest respective premium by line of business among all states. Industry Employment The U.S. Bureau of Labor Statistics (BLS) produces the Quarterly Census of Employment and Wages (QCEW). The QCEW is derived from quarterly unemployment insurance tax reports submitted by employers to state workforce agencies. The reports are subject to state unemployment insurance laws, as well as to the Unemployment Compensation for Federal Employees (UCFE) program. According to the BLS, the QCEW program publishes a quarterly count of employment and wages covering 98% of U.S. jobs, available by industry in the county, metropolitan statistical area (MSA), state and national levels. Employment is the total number of persons employed full-time or part-time in non-farm establishments during a specified payroll period. Temporary employees are included. In general, data refer to persons who worked during, or received pay for, any part of the pay period that includes the 12th of the month, which is standard for all federal agencies collecting employment data from business establishments. carriers include employees of direct insurers from all insurance types and reinsurers. Agencies, brokerages and other insurance-related activities include insurance agents and brokers, independent claims adjusters, third-party administrators of insurance and pension funds, and other insurance-related activities. Consumer Complaints Complaints include all formal complaints lodged with the insurance department. Consumer Inquiries Inquiries include all requests for information about insurance-related issues made by any medium, including phone calls, written letters, emails, etc. Requests for brochures are included, as are incidents where a complaint is voiced, but is not formally lodged. Gross Domestic Product The U.S. Bureau of Economic Analysis (BEA) produces the gross domestic product (GDP). The BEA defines GDP by state as the most comprehensive measure of overall economic activity in the individual states. Per the BEA, GDP by state is calculated as the sum of incomes earned by labor and capital and the costs incurred in the production of goods and services. It includes workers wages and salaries; income earned by sole proprietorships, partnerships and corporations; and business taxes (such as sales, property, and federal excise taxes) that count as a business expense.
Regulation: Key Facts and Market Trends The primary goal of state regulation is to protect insurance consumers, while recognizing that consumers as well as companies are well served by efficient, market-oriented regulation of the business of insurance. OVERVIEW OF THE UNITED STATES INSURANCE MARKET Group Five Largest Groups in the U.S. by Direct Written Direct Written* % of METROPOLITAN GRP $104,186,862,716 6.02% UNITEDHEALTH GRP $90,358,275,488 5.22% PRUDENTIAL OF AMER $87,249,108,635 5.04% STATE FARM IL $56,149,303,051 3.25% WELLPOINT INC GRP $51,958,437,875 3.00% Top 5 $389,901,987,765 *Includes Deposit Type Funds and premium written in U.S. territories from Property, Life, Fraternal, Title, and Health Annual ments. Source: National Association of Commissioners U.S. Gross Domestic Product * Funds, trusts, and other financial vehicles carriers and related activities Securities, commodity contracts, and investments Federal Reserve banks, credit intermediation, and related services $42,326 $421,445 $223,825 $519,334 N/A N/A N/A N/A Finance and insurance $1,206,931 $1,261,274 *Figure is an estimate. Source: US Department of Commerce, Bureau of Economic Analysis U.S. Financial Sector Employment Carriers and Related 2,078,166 2,144,426 2,186,611 Carriers 1,172,476 1,198,142 1,181,661 Direct Life and Health Carriers 601,240 618,724 614,241 Direct Life Carriers 261,135 259,898 247,345 Direct Health and Medical 347,366 359,907 366,089 Carriers Direct Insurers (except Life and Health) 507,353 511,365 503,163 Direct Property and Casualty Insurers 458,032 470,277 465,246 Direct Title Carriers 53,474 58,352 54,766 Other Direct Carriers 11,697 10,358 10,012 Reinsurance Carriers 20,852 21,290 20,034 Agencies and Brokerages 905,689 946,284 1,004,960 Other Related 253,894 280,807 295,470 Claims Adjusting 52,718 54,277 54,549 Third Party Administration of 139,138 159,233 169,039 Funds All Other Related 62,033 67,300 71,875 Source: U.S. Department of Labor, Bureau of Labor Statistics Securities, Commodity Contracts, Investments 18.54% Carriers and Related 34.92% Securities, Commodity Contracts, Investments 17.12% Carriers and Related 38.31% U.S. Gross Dometic Product Shares of Financial Institutions By Component, U.S. Gross Dometic Product Shares of Financial Institutions By Component, Federal Reserve Banks, Credit Internediation and Related Services 43.03% Funds, Trusts, and Other Financial Vehicles 3.51% Federal Reserve Banks, Credit Internediation and Related Services 40.35% Funds, Trusts, and Other Financial Vehicles 4.22% Copyright 2015 National Association of Commissioners. All rights reserved.
Regulation: Key Facts and Market Trends OVERVIEW OF THE UNITED STATES INSURANCE MARKET Billions $2,000 $1,600 $1,200 $800 $400 U.S. All Types of ($ billions) $1,363 $1,469 $1,635 $1,677 $1,639 $1,648 $1,741 $1,839 $1,865 $1,990 2005 (s from Property, Life, Fraternal, Health and Title Annual ments plus Funds for Property and Health) Source: National Association of Commissioners U.S. Property & Casualty by Line of Business Line of Business Accident & Health 5,943,310,369 5,601,767,251 Allied lines 13,349,691,960 12,995,129,881 Federal flood 3,078,500,389 3,028,609,117 Crop 967,755,975 Farm 15,084,480,622 13,666,645,811 Homeowners multiple peril 82,660,181,703 86,303,533,486 Commercial multi peril 37,721,168,598 38,961,757,164 Mortgage guaranty 4,546,543,732 4,534,832,939 Ocean & Inland Marine 19,947,274,865 21,586,864,497 Financial guaranty 608,444,024 477,564,807 Fire 13,098,155,584 12,670,360,838 Earthquake 2,280,047,235 2,301,676,840 Workers' compensation 55,708,292,405 59,444,975,584 Products liability 3,321,275,989 3,358,246,777 Automobile 207,309,338,508 218,409,045,763 Aircraft (all perils) 1,550,680,659 1,502,705,778 Fidelity 1,171,257,946 1,211,389,569 Surety 5,214,468,817 5,459,383,404 Burglary and theft 246,775,411 265,462,287 Boiler and machinery 1,466,336,006 1,492,824,809 Credit 1,695,022,129 1,714,424,883 Other 57,058,714,233 61,491,956,150 Medical professional liability 9,784,635,293 9,658,127,504 542,844,596,029 567,105,040,780 Source: National Association of Commissioners (s from Property Annual ments plus Funds) $200,000 $160,000 $120,000 $80,000 193,000 Written for Automobile 191,640 188,896 186,322 187,773 190,462 197,383 207,309 218,409 $80,000 $70,000 $60,000 $50,000 $30,000 60,800 Written for Homeowners 64,679 65,034 67,545 71,004 73,676 77,854 82,660 86,304 $35,000 $30,000 $25,000 $15,000 $5,000 35,987 Written for Commercial MP 35,572 34,608 33,663 32,886 33,668 35,948 37,721 38,962 $14,000 $12,000 $8,000 $6,000 $4,000 $2,000 12,326 Written for Medical Liability 11,657 11,208 10,795 10,595 10,280 10,019 9,785 9,658 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 522,013 Written for Life * 565,718 587,842 527,969 519,217 564,083 604,422 570,056 592,582 $1,000,000 $800,000 $600,000 $400,000 $200,000 Written & Deposits for Health ** 432,057 470,604 587,197 625,408 641,056 674,607 707,540 738,900 817,787 * Figures include Life, Annuities, Deposit Type Funds, and Other Considerations from the NAIC Life, and Fraternal financial statements. ** Figures includes Health data from the NAIC Health, Life, and Fraternal financial statements and California data. Figures include data from Funds where applicable. Copyright 2015 National Association of Commissioners. All rights reserved.
Regulation: Key Facts and Market Trends The primary goal of state regulation is to protect insurance consumers, while recognizing that consumers as well as companies are well served by efficient, market-oriented regulation of the business of insurance. OVERVIEW OF THE UNITED STATES INSURANCE MARKET Data Year U.S. s by NAIC Financial ment Type Fraternal Property & Casualty* Life Health** Organizations Title 2005 $484,337,075,492 $584,720,919,871 $6,559,555,580 $16,712,273,034 $1,362,648,381,529 $496,294,031,030 $646,997,453,976 $6,441,524,762 $16,295,296,630 $1,469,425,157,555 $502,303,781,431 $701,396,470,641 $411,185,416,773 $6,244,013,237 $13,906,453,999 $1,635,036,136,081 $490,607,632,320 $733,223,936,388 $436,144,110,438 $7,651,600,465 $9,784,308,716 $1,677,411,588,327 $475,352,229,041 $673,775,162,639 $471,264,277,619 $8,874,377,984 $9,376,264,339 $1,638,642,311,622 $475,087,530,842 $667,917,139,633 $485,478,978,203 $10,056,997,119 $9,322,927,851 $1,647,863,573,648 $492,359,898,516 $712,620,034,399 $516,592,347,745 $10,059,457,703 $9,163,755,643 $1,740,795,494,006 $515,045,289,525 $755,487,272,271 $546,782,291,690 $10,309,568,435 $11,129,648,863 $1,838,754,070,784 $542,844,596,048 $728,885,499,002 $570,536,064,511 $10,215,714,914 $12,452,031,563 $1,864,933,906,038 $567,105,540,757 $737,379,299,501 $664,294,992,550 $10,458,718,577 $11,060,055,329 $1,990,298,606,714 *Starting in 2004, Property/Casualty premiums include Supplemental Funds. ** Starting in, Health premiums include data filed with the California Department of. Source: National Association of Commissioners U.S. s by NAIC IDRR Category Data Year* Life / Annuities Property / Casualty Health Title Risk Retention Group All Other $1,941,184,274,569 $640,643,528,312 $531,035,731,399 $748,536,253,645 $10,548,824,996 $2,495,102,095 $7,924,834,122 was the first year IDRR collected premiums by category. Additional years will be added to the chart as they become available. Source: NAIC Department Resources Report U.S. Industry Information Domestic Num of Domestic Domestic Mean Captive Num of Captives Captive Mean $1,941,184,274,569 6,118 $317,290,663 $20,956,215,934 2,737 $7,656,637 Source: NAIC Department Resources Report Revenue Tax Revenue U.S. Department Information for All s Budget Employment Consumer Inquiries Consumer Complaints $22,213,914,383 $17,505,566,015 $1,325,367,168 11,531 1,937,653 279,980 Source: NAIC Department Resources Report Copyright 2015 National Association of Commissioners. All rights reserved.
Regulation in Pennsylvania: Key Facts and Market Trends Overview of the Market In Pennsylvania Number of Companies in Pennsylvania Type Number Domestic 271 6 Domestic and Licensed Foreign Insurers Captives not included. Source: NAIC Department Resources Report 1,804 5 Captive Companies in Pennsylvania Number of Captives Direct Written Captive 0 Source: NAIC Department Resources Report Description Department Data for Pennsylvania Amount % of U.S. Taxes: $757,601,000 4 4.33% Revenue: $823,448,574 5 3.71% Budget: $22,330,000 15 1.68% Employment: 222 15 1.93% Inquiries: 54,906 11 2.83% Complaints: 12,438 6 4.44% Source: NAIC Department Resources Report ment Type s & Deposits by Type of Annual ment Filing in Pennsylvania Written % of U.S. Fraternal $765,403,138 3 7.32% Health $37,890,779,953 5 5.70% Life, Accident, and Health $33,842,331,382 6 4.59% Property and Casualty $22,289,367,246 6 3.93% Title $422,003,242 5 3.82% Pennsylvania $95,209,884,961 5 4.78% Source: National Association of Commissioners Category Type IDRR s by Category in Pennsylvania Property and Casualty Life/Annuities Risk Retention Group All Other Title Health s Source: NAIC Department Resources Report % of U.S. $20,901,713,196 6 3.94% $34,547,260,872 4 5.39% $359,762,838 2 14.42% $475,228,321 3 6.00% $422,003,242 5 4.00% $37,935,407,824 5 5.07% $94,641,376,293 5 4.88% Cost of Regulation in Pennsylvania Year Department Budget Dept. Budget Per $1,000 2005 $25,334,000.35 $25,131,000.33 $27,340,000.34 $23,520,000.28 $23,334,000.28 $20,542,000.25 $18,878,000.20 $18,502,000.19 $20,800,000.22 Dept Budget (Thousands) $28,000,000 $24,000,000,000 $16,000,000 $12,000,000 $8,000,000 $4,000,000 Cost of Regulation 2005 Fiscal Year.40.35.30.25.20.15.10.05.00 Cost of Regulation per $1,000 $22,330,000.23 Source: NAIC Department Resources Report Department Budget Dept Budget per $1,000 Copyright 2015 National Association of Commissioners. All rights reserved.
Regulation in Pennsylvania: Key Facts and Market Trends Overview of the Market In Pennsylvania Millions Direct Written & Deposits In- All Types of $100,000 $80,000 $60,000 $71,656 $76,020 $80,087 $82,888 $81,982 $83,576 $93,296 $97,268 $95,057 2005 Year Source: National Association of Commissioners $95,210 by Line of Business in Pennsylvania Line of Business Written % of U.S. Automobile $8,861,815,083 5 4.06% Homeowners multiple peril $3,173,061,715 6 3.68% Workers' compensation $2,644,800,054 5 4.45% Other $2,493,215,357 6 4.05% Commercial multi peril $1,699,467,724 5 4.36% Ocean & Inland Marine $679,876,044 6 3.15% Medical professional liability $648,924,394 3 6.72% Fire $436,485,007 5 3.44% Accident & Health $347,995,463 4 6.21% Allied lines $299,847,035 8 2.31% Surety $220,582,529 6 4.04% Mortgage guaranty $172,448,828 5 3.80% Farm $159,262,544 23 1.17% Products liability $138,274,381 7 4.12% Credit $71,910,981 6 4.19% Boiler and machinery $63,533,898 5 4.26% Federal flood $56,874,182 11 1.88% Fidelity $53,804,454 6 4.44% Aircraft (all perils) $32,091,151 14 2.14% Earthquake $17,315,538 24 0.75% Burglary and theft $11,197,411 6 4.22% Financial guaranty $6,431,175 8 1.35% Crop $152,327 35 0.02% $22,289,367,247 6 3.93% Source: National Association of Commissioners $8,000 $6,000 $4,000 $2,000 8,310 Written for Automobile 8,252 8,144 8,080 8,106 8,150 8,334 8,564 8,862 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 2,285 2,355 Written for Homeowners 2,365 2,457 2,554 2,661 2,860 3,054 3,173 $1,800 $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 1,550 1,502 Written for Commercial MP 1,470 1,442 1,434 1,501 1,587 1,645 1,699 $800 $700 $600 $500 $400 $300 $200 $100 768 735 Written for Medical Liability 741 741 726 704 706 692 649 $35,000 $30,000 $25,000 $15,000 $5,000 22,419 Written & Deposits for Life * $45,000 $35,000 $30,000 $25,000 $15,000 $5,000 * Figures include Life, Annuities, Deposit Type Funds, and Other Considerations from the NAIC Life, and Fraternal financial statements. ** Figures include Health data from the NAIC Health, Life, and Fraternal financial statements and California data. Figures include data from Funds where applicable. Copyright 2015 National Association of Commissioners. All rights reserved. 24,121 25,479 22,741 24,096 32,584 34,473 30,937 28,584 32,671 s Written & Deposits for Health ** 35,033 36,849 39,190 39,645 40,326 40,679 41,916 43,913
Regulation in Pennsylvania: Key Facts and Market Trends Overview of the Market In Pennsylvania Industry Employment in Pennsylvania Year Carriers and Related Carriers Agents Broker and Other Related 114,504 72,837 41,667 115,490 74,599 40,891 114,691 74,086 40,605 112,310 72,251 40,059 110,664 70,470 40,194 113,261 72,641 40,619 117,155 75,488 41,667 120,049 73,883 46,166 Source: US Department of Labor, Bureau of Labor Statistics Gross Domestic Product for Pennsylvania Funds, trusts, and other $764 $1,083 $1,189 N/A financial vehicles carriers and $19,612 $19,470 $21,308 N/A related activities Securities, commodity $5,912 $6,797 $7,330 N/A contracts, and investments Federal Reserve banks, $9,739 $9,917 $10,437 N/A credit intermediation, and related services Finance and insurance $36,027 $37,267 $40,264 $42,231 Note: figure is an estimate. Source: US Department of Commerce, Bureau of Economic Analysis Gross Dometic Product in Pennsylvania Shares of Financial Institutions By Component, Federal Reserve banks, credit intermediation, and related services 25.92% Funds, trusts, and other financial vehicles 2.95% Securities, commodity contracts, and investments 18.20% carriers and related activities 52.92% Copyright 2015 National Association of Commissioners. All rights reserved.