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2020 Insurance Fact Book

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2020 Insurance Fact Book 2020 Insurance Fact Book TO THE READER As we welcome a new decade, the challenges before the insurance industry are vast. The catastrophic shock of the 2017 and 2018 wildfire seasons, with estimated insured losses ranging between $22 billion and $36 billion to date in California alone—and the $75 billion to $97 billion in losses from the 2017 to 2019 Atlantic hurricane seasons—are telling. What the last decade has foreshadowed could be, as some say, the new abnormal. This year’s Insurance Information Institute (Triple-I) Insurance Fact Book ushers in the decade with significant changes that reflect the new risks insurers face. A new section, “Emerging and Evolving Insurance Issues,” discusses social inflation, cybersecurity and extreme weather. We have also added a section on the homeowners high-risk market, with new coastline population and coastal storm surge risk charts along with incurred losses for the sector; the commercial lines section now addresses issues surrounding marijuana use and workers compensation with information from the Triple-I’s white paper, Haze of confusion; and the chapter on losses has been reorganized to present natural and man-made catastrophes more efficiently. The book also includes a look at the state of small businesses cybersecurity with highlights from the Triple-I and J.D. Power’s 2019 Small Business Cyber Insurance and Security Spotlight SurveySM. The Insurance Fact Book is meant to be used along with our website, www.iii.org. The Triple-I remains a vital source for the public, insurers, regulators, and the media, which all rely on us for credible, timely information. Social networks are another way to stay in touch: We welcome you to like our Facebook page and follow us on Twitter at @iiiorg and @III_Research, or connect with us on LinkedIn. Thank you to the many associations, consultants and others who collect industry statistics and who have generously given permission to use their data—and to our members, for their longstanding support. Wishing you all the best in the new decade. Sean Kevelighan Chief Executive Officer Insurance Information Institute The 2020 Insurance Fact Book is published by the Insurance Information Institute, a primary source for information, analysis and referral on insurance subjects. The Fact Book contains material from numerous sources. Because these sources define and collect data in various ways, and moreover, are constantly refining the data, differences among similar data may occur. ©2020 Insurance Information Institute. ISBN 978-0-932387-83-7. iiInsurance Information Institute | www.iii.org 2020 Insurance Fact Book ii TABLE OF CONTENTS Insurance Industry At A Glance .................................................................................................................................... v Chapter 1: World Insurance Markets Premiums ........................................................................................................................................................................1 Reinsurance ...................................................................................................................................................................5 Leading Companies ....................................................................................................................................................7 International Sales .......................................................................................................................................................9 Captives And Other Risk-Financing Options .................................................................................................... 10 Microinsurance And Emerging Markets ............................................................................................................. 11 Chapter 2: U.S. Insurance Industry, All Sectors Premiums ..................................................................................................................................................................... 15 Leading Companies ................................................................................................................................................. 17 Health ........................................................................................................................................................................... 18 Employment And Other Economic Contributions ........................................................................................... 19 Mergers And Acquisitions ...................................................................................................................................... 21 Companies By State ................................................................................................................................................. 25 Premium Taxes By State ......................................................................................................................................... 26 Chapter 3: Distribution Property/Casualty ...................................................................................................................................................... 27 Life ................................................................................................................................................................................. 29 Annuities ...................................................................................................................................................................... 30 Chapter 4: Retirement Overview...................................................................................................................................................................... 31 IRAs ............................................................................................................................................................................... 34 401(k)s .......................................................................................................................................................................... 35 Mutual Funds .............................................................................................................................................................. 35 Annuities ...................................................................................................................................................................... 36 Chapter 5: Life/Annuity Financial Data Financial Results ........................................................................................................................................................ 39 Investments ................................................................................................................................................................. 42 Payouts ......................................................................................................................................................................... 43 Premiums By Line… .................................................................................................................................................. 44 Leading Companies ................................................................................................................................................. 48 Separate Accounts ................................................................................................................................................... 50 Chapter 6: Property/Casualty Financial Data Financial Results ........................................................................................................................................................ 51 Investments ................................................................................................................................................................. 58 Surplus Lines .............................................................................................................................................................. 60 Concentration............................................................................................................................................................. 61 Reinsurance ................................................................................................................................................................ 62 Premiums By State .................................................................................................................................................... 63 Incurred Losses By State ........................................................................................................................................ 64 Guaranty Funds ......................................................................................................................................................... 65 iiiInsurance Information Institute | www.iii.org 2020 Insurance Fact Book iii TABLE OF CONTENTS Chapter 7: Property/Casualty Insurance By Line Premiums By Line ..................................................................................................................................................... 67 Auto: Premiums .......................................................................................................................................................... 74 Auto: Costs/Expenditures ......................................................................................................................................
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