0130_EconSnapshot
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LOCAL ECONOMIC SNAPSHOT | TEXAS INSURANCE
A premium market
By GARY JACOBSON
Staff Writer [email protected]
KYLE ALCOTT
Staff Artist [email protected]
Texans spend more — a lot more — to buy insurance each year than they do to run the state. We spent $102.9 billion on insurance of all kinds in 2010 (the latest figures available), according to the Texas Department of Insurance, which prepares an annual report for the governor and Legislature. By comparison, the state budget currently runs at the rate of about $86 billion a year.
Texas policy premiums, claim payments
Insurance companies make money, in part, on the difference between the premiums they collect and the claims they pay out. Claims can vary widely from year to year. One big hurricane or hailstorm can make a difference. Premiums
(In billions) 120 100 80 60 40 20 0 ’95 ’96 ’97 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10
Texas insurance market 2010
Texans spend about the same to insure their stuff (property and casualty) as they do their health (accident and health plus HMO). Property and casualty $37.8 billion Accident and health $23.4 billion HMO $13 billion
Claim payments 2010: $102.9 billion
Annuity $18.5 billion 2010: $70.8 billion
Life $9.2 billion
Title $1.1 billion Other: $4 million
Texas market share leaders
State Farm is No. 1 in homeowners and auto insurance while Blue Cross Blue Shield of Texas leads in health, and Metropolitan in life insurance. The top three home insurers (State Farm, Allstate, Farmers) control nearly 55 percent of the market.
HOMEOWNERS
Insurance group
State Farm Group Allstate Group Zurich Group (Farmers) United Services Group Liberty Mutual Group Travelers Group Nationwide Group Chubb & Son Group Hartford Group
PERSONAL AUTO
2010 premiums
$1.7 billion $732.9 million $726.5 million $449.5 million $305 million $282.6 million $209.7 million $115 million $104.3 million 12.6% 12.5% 7.7% 5.3% 4.9% 3.6% 2.6% 2% 1.8%
Market share
29.2%
Insurance group
State Farm Group Zurich Group (Farmers) Allstate Group Progressive Group United Services Group Nationwide Group Liberty Mutual Group Home State Group Titus Group
2010 premiums
$2.7 billion $1.7 billion $1.5 billion $1.1 billion $931.2 million $461.2 million $370.3 million $363.7 million $329.3 million
Market share
20.3% 12.4% 11.4% 8.4% 7% 6.5% 3.5% 2.8% 2.7% 2.5%
Berkshire-Hathaway (Geico) $871.3 million
Texas Farm Bureau Group $152.5 million
HEALTH (Includes HMO)
Insurance group
HCSC Group (BCBSTx) UnitedHealth Group Aetna Group Humana Group Amerigroup Centene Group Newquest Group Cigna Health Group Scott and White Group
LIFE
2010 premiums
$7.7 billion $6.5 billion $2.6 billion $2.5 billion $1.4 billion $1.3 billion $1.0 billion $891.4 million $550.6 million 7% 3.9% 3.7% 2.8% 2.5% 2.5% 1.5% 7.8%
Market share
20.9% 17.9%
Insurance group
Metropolitan Group New York Life Group Prudential Group Lincoln National Group State Farm Group American International Aegon Holding Group John Hancock Group Mass Mutual Group
2010 premiums
$719.4 million $537.2 million $380.8 million $374.7 million $307.2 million $292.2 million $273.3 million $254.3 million $243.7 million
Market share
7.8% 5.8% 4.6% 4.1% 4.1% 3.3% 3.2% 3% 2.8% 2.6%
Northwestern Mutual Group $424.8 million
Universal American Group $907.6 million
SOURCES: Texas Department of Insurance annual reports and analysis by The Dallas Morning News
The bottom line
“The auto insurance market in Texas is more competitive than homeowners. Health insurance is in a state of flux. Homeowners is pretty much dominated by a handful of companies who have the lion’s share of the business. It’s not as competitive as we would like it to be.” Deeia Beck, public counsel, Office of Public Insurance Counsel “The economic sustainability in this state continues to amaze my colleagues around the country. The growth in premiums is largely the result of growth in the economy.” “With all the face time the cute gecko gets in his TV ads, even dancing the two-step, you’d think Geico would have a larger share of the Texas auto insurance market. The company is in the top 10, but not close to the leaders.”
David VanDelinder, executive director, Independent Insurance Agents of Texas
Gary Jacobson, staff writer, The Dallas Morning News
A premium market
By GARY JACOBSON
Staff Writer [email protected]
KYLE ALCOTT
Staff Artist [email protected]
Texans spend more — a lot more — to buy insurance each year than they do to run the state. We spent $102.9 billion on insurance of all kinds in 2010 (the latest figures available), according to the Texas Department of Insurance, which prepares an annual report for the governor and Legislature. By comparison, the state budget currently runs at the rate of about $86 billion a year.
Texas policy premiums, claim payments
Insurance companies make money, in part, on the difference between the premiums they collect and the claims they pay out. Claims can vary widely from year to year. One big hurricane or hailstorm can make a difference. Premiums
(In billions) 120 100 80 60 40 20 0 ’95 ’96 ’97 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10
Texas insurance market 2010
Texans spend about the same to insure their stuff (property and casualty) as they do their health (accident and health plus HMO). Property and casualty $37.8 billion Accident and health $23.4 billion HMO $13 billion
Claim payments 2010: $102.9 billion
Annuity $18.5 billion 2010: $70.8 billion
Life $9.2 billion
Title $1.1 billion Other: $4 million
Texas market share leaders
State Farm is No. 1 in homeowners and auto insurance while Blue Cross Blue Shield of Texas leads in health, and Metropolitan in life insurance. The top three home insurers (State Farm, Allstate, Farmers) control nearly 55 percent of the market.
HOMEOWNERS
Insurance group
State Farm Group Allstate Group Zurich Group (Farmers) United Services Group Liberty Mutual Group Travelers Group Nationwide Group Chubb & Son Group Hartford Group
PERSONAL AUTO
2010 premiums
$1.7 billion $732.9 million $726.5 million $449.5 million $305 million $282.6 million $209.7 million $115 million $104.3 million 12.6% 12.5% 7.7% 5.3% 4.9% 3.6% 2.6% 2% 1.8%
Market share
29.2%
Insurance group
State Farm Group Zurich Group (Farmers) Allstate Group Progressive Group United Services Group Nationwide Group Liberty Mutual Group Home State Group Titus Group
2010 premiums
$2.7 billion $1.7 billion $1.5 billion $1.1 billion $931.2 million $461.2 million $370.3 million $363.7 million $329.3 million
Market share
20.3% 12.4% 11.4% 8.4% 7% 6.5% 3.5% 2.8% 2.7% 2.5%
Berkshire-Hathaway (Geico) $871.3 million
Texas Farm Bureau Group $152.5 million
HEALTH (Includes HMO)
Insurance group
HCSC Group (BCBSTx) UnitedHealth Group Aetna Group Humana Group Amerigroup Centene Group Newquest Group Cigna Health Group Scott and White Group
LIFE
2010 premiums
$7.7 billion $6.5 billion $2.6 billion $2.5 billion $1.4 billion $1.3 billion $1.0 billion $891.4 million $550.6 million 7% 3.9% 3.7% 2.8% 2.5% 2.5% 1.5% 7.8%
Market share
20.9% 17.9%
Insurance group
Metropolitan Group New York Life Group Prudential Group Lincoln National Group State Farm Group American International Aegon Holding Group John Hancock Group Mass Mutual Group
2010 premiums
$719.4 million $537.2 million $380.8 million $374.7 million $307.2 million $292.2 million $273.3 million $254.3 million $243.7 million
Market share
7.8% 5.8% 4.6% 4.1% 4.1% 3.3% 3.2% 3% 2.8% 2.6%
Northwestern Mutual Group $424.8 million
Universal American Group $907.6 million
SOURCES: Texas Department of Insurance annual reports and analysis by The Dallas Morning News
The bottom line
“The auto insurance market in Texas is more competitive than homeowners. Health insurance is in a state of flux. Homeowners is pretty much dominated by a handful of companies who have the lion’s share of the business. It’s not as competitive as we would like it to be.” Deeia Beck, public counsel, Office of Public Insurance Counsel “The economic sustainability in this state continues to amaze my colleagues around the country. The growth in premiums is largely the result of growth in the economy.” “With all the face time the cute gecko gets in his TV ads, even dancing the two-step, you’d think Geico would have a larger share of the Texas auto insurance market. The company is in the top 10, but not close to the leaders.”
David VanDelinder, executive director, Independent Insurance Agents of Texas
Gary Jacobson, staff writer, The Dallas Morning News
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