At least 26,000 Ohio insurance industry jobs are available between now and 2020, ... (Regionomics LLC 2013 study and Ins
THE INSURANCE INDUSTRY IN
2016 edition
Representing Ohio’s property/casualty insurance industry
Representing Ohio’s property/casualty insurance industry
[email protected] www.ohioinsurance.org
10 facts about Ohio’s insurance industry • Ohio’s homeowners insurance premium is 30% below the US average, making it one of the most affordable states in the US. (ValuePenguin.com, http://bit.ly/2a7YPaF) • At least 26,000 Ohio insurance industry jobs are available between now and 2020, not including those in health insurance fields. (Regionomics LLC 2013 study and Insurance Industry Resource Council, http://bit.ly/2aMZClU) • Ohio’s uninsured health insurance rate has been cut in half, down from 17.3% in 2012 to 8.7% in 2015. (Governor’s Office of Health Transformation, http://bit.ly/2asbRnq) • Ohio ranks as the least expensive state in terms of owning and operating a vehicle. The 2016 study factors in the annual cost of auto insurance. (24/7 Wall St., http://bit.ly/29myQyl) • 10.8% of Ohio’s workforce was employed in the health care industry in 2014, compared to the US average of 9%. (Bureau of Labor Statistics, State Occupational Employment Statistics Survey, http://kaiserf.am/2aeOrmh) • Women, including Mary Taylor, director of the Ohio Department of Insurance and lieutenant governor, head 16 of the US state departments of insurance. (http://bit.ly/2a0f7D1) • Ohio ranks No. 2 for auto insurance affordability for the second year in a row. (Insure.com, http://bit.ly/15m2l88) • 10 Ohio colleges & universities now offer insurance-related courses, certificates and/or degree programs. (InsuranceCareers.org, http://bit.ly/1KoG0gW) • Ohio ranks 6th in the US based on the state’s 2015 total insurance premium volume of over $78 billion. (National Association of Insurance Commissioners, http://bit.ly/2anUbZp) • Ohio’s industry sector, “insurance agencies, brokers and related,” is projected to have a 15.4% increase in employment between 2012-22. (Ohio Department of Job and Family Services report, Top 30 Industries with the Most New Jobs, http://bit.ly/2aoSVpR)
Ohio’s Insurance Industry When you think of insurance,
for granted—our health, car
you might think about the last
or our home—wouldn’t be so
premium you paid or the storm
easy to maintain or acquire.
claim from last summer. But
The insurance industry is also
there’s more to insurance than
a major contributor to Ohio’s
just premiums and claims.
economy and community
By taking a look at its overall
development. It provides jobs
impact in the Buckeye state,
and f inancial security to a
you begin to realize that without
workforce of 104,000-plus and
it, many of the things we take
growing.
2016 edition:
in OHIO
The Insurance Industry
Representing Ohio’s property/casualty insurance industry
Insurance provides property and financial security
Insurance as an employer
Insurance is a major player in Ohio when it comes to employment opportunities. Ohio is home to 242 insurance companies. It’s one of the state’s major employers with over 104,000 employees and wages of nearly $7.5 billion. Ohio has 70,509 licensed resident insurance agents, according to August 2016 figures from the Ohio Department of Insurance (ODI). There’s an additional 133,400 non-resident agents licensed by the ODI too. 2014-15 employment figures below don’t include single-person businesses that service the insurance industry as consultants or self-employed agents. Over one-third (35.5%) of the state’s insurance industry employment is in the property/casualty (P/C) insurance field.
Insurance is just one of the factors that
enables Ohioans to make long-term commitments and secure a better future. In 2015 insurance played a role in: • 19,600 new family dwellings and apartments that broke ground
• 70,460 new businesses that were formed, creating new job opportunities*
Insurance Line
• The sale of 240,193 cars and 372,442 trucks and SUVs at Ohio dealerships
Life Health/Medical Property/Casualty Title Agents/Brokers Other
• Protecting Ohio’s 7.85 million licensed drivers by providing auto insurance through a strong, competitive market
Total
2014 Employment
2014 Wage Estimates
2015 Employment
8,978 14,952 35,708 1,453 25,085 13,9721
$651,346,000 1,039,669,000 2,982,097,000 82,718,000 1,499,033,000 764,243,000
9,334 15,051 36,945 1,455 27,120 14,2161
100,1482
$7,019,106,000
104,1212
$701,419,000 1,070,377,000 3,110,491,000 91,036,000 1,689,332,000 811,293,000 $7,473,948,000
Includes surety companies, reinsurers, claims adjusters, third party administrators, and others employed in insurance-related fields. 2 Totals reflect those who qualified for unemployment compensation and don’t include agents or insurance industry consultants operating as single-person businesses. In 2014, the self-employed insurance industry workforce was estimated at 14,856. Self-employed estimates for 2015 are 16,770. Both 2014 and 2015 employment figures are preliminary and subject to change. Source: Ohio Department of Job & Family Services, Bureau of Labor Market Information. Totals may be slightly off due to rounding.
2015 preliminary insurance industry employment estimates by Ohio MSA1
• Providing protection to Ohio’s 4,814 schools, along with enabling the construction and renovation of new and existing schools
The average annual salary for an Ohioan working in insurance in 2014 was $70,088. That’s 35% higher than Ohio’s average private sector annual salary of $45,486.
Cleveland/Elyria/ Mentor MSA: 21,753
Toledo MSA: 2,985
*For 2015 includes new businesses that hire more than 2 employees.
Akron MSA: 6,014
Ohioans purchase insurance to protect their assets and as a means of financial security. Ohio’s insurance industry covered $36.2 billion in losses in 2015 including:
Ashland/Mansfield MSAs: 459
• Nearly $5.3 billion in homeowners, auto, commercial and other property/ casualty insurance losses including: $3.9 billion for personal and commerical auto insurance losses, $1.1 billion in homeowners insurance losses and $140 million for claims related to accident & health
Youngstown MSA: 1,6132
Dayton MSA: 4,478
Columbus MSA: 29,217
• $30.9 billion distributed to the beneficiaries of employer-based accident and health insurance policies. Ohioans were paid $2.5 billion in death benefits through life insurance policies.
Cincinnati/Middletown MSA: 21,565
Source: Ohio Office of Workforce Development, Bureau of Labor Market Information. Based on average employment for 2015. Figures are not final and subject to change.
. Metropolitan Statistical Area Youngstown MSA includes Warren and Boardman For more info on MSAs: http://bit.ly/1MpWDLq 1 2
Ohio ranks 6th in the US for P/C insurance companies headquartered in the state, 4th in domestic life/ annuity companies & 9th in health insurers. (NAIC 2015 Insurance Department Resources Report)
Selected Ohio 2014 Annual Wages: • Average private employment annual salary: $45,486 • Average insurance industry annual salary: $70,088 • Reinsurance carriers: $88,751 • P/C carriers: $83,515 • All insurance carriers: $77,734 • Life insurance carriers: $72,550 • Life and health carriers: $70,666 • Insurance agents and brokers: $57,684 (Ohio Department of Job and Family Services, Office of Workforce Development, Bureau of Labor Market Information)
Ohio insurance industry employment average by year—2011-2015 Year
Total industry1
2011 2012 2013 2014 20152
94,736 95,481 97,403 100,144 104,120
Insurance carriers
Agents, broker & related services
61,814 60,954 61,933 61,956 63,615
32,922 34,527 35,470 38,188 40,505
Industry figures are based on NAICS codes 5241 (Insurance Carriers), 5242 (Insurance Agencies, Brokerages & Other Insurance-Related Activities) and 524 (Total for Insurance Carriers & Related Activities). Totals may be slightly off due to rounding. 2 2015 figures are preliminary and subject to change. Source: Ohio Office of Workforce Development, Bureau of Labor Market Information 1
(National Association of Insurance Commissioners-NAIC)
Insurance as a state economic contributor
Consumers benefit from the hundreds of companies vying for their insurance business, keeping premiums competitive. Only IL and TX have more auto insurance carriers than Ohio’s 677. Four states–IL, NY, PA and GA–have more writers of homeowners insurance (NJ tied w/ Ohio). Ohio has 233. (A.M. Best)
State taxes paid by insurance companies 2012–2016
Columbus and Cleveland rank in top 10 cities for healthcare jobs
in 2016.
(ZipRecruiter.com, http://bit.ly/2aaWl1i)
Ohio ranks 7th in the US in insurance industry employment.
(Insurance Information Institute. 2014 data from US Dept. of Commerce, Bureau of Economic Analysis, Regional Economic Information System)
Built-in consumer protection
The insurance industry protects consumers when an insurer declares bankruptcy or becomes insolvent. The Ohio Insurance Guaranty Association provides consumers a safety net should their insurance company fail, allowing policyholders to recoup unearned premiums or compensation for claims in process. The association provides a mechanism to collect and pool funds from all state licensed insurance companies. Insurers are assessed based on their Ohio market share. Since 1970, the Ohio fund assessed insurers a net amount of $80.8 million through December 2015. No additional assessments were necessary during the past year. Rev. 8/16
2015 Wage Estimates
1
• Nearly $7.5 billion paid to a record 104,100 Buckeye residents employed in Ohio’s insurance industry
The next time you pay your insurance premiums, think about this: Ohioans pay nearly $182 less than the US average for auto insurance and $333 less for homeowners insurance. Ohio’s average homeowners insurance premium (study includes D.C.) is 9th lowest in the country. Our 2013 average homeowners insurance premium was $763 compared to the US average of $1,096. Ohio’s average auto insurance expenditure is 12th lowest in the US–$659 compared to the US average of $841.
(Ohio Office of Workforce Development, Bureau of Labor Market Information)
Ohio employment by insurance line—2014 and 2015
• $11.2 billion in wages earned by Ohio’s 200,243 construction industry employees
Insurance - It’s affordable in Ohio
Ohio’s insurance industry employment peaked in 2006 at 106,100. 2015 employment figures are at the highest levels since then.
Insurance companies continue to be a major contributor to Ohio’s bottom line. In 2016 insurance companies will pay nearly $596.3 million in taxes–that’s over $1.63 million a day.
2012:
2013 premium taxes paid by Ohio insurers ranked 9th highest in the country. 2014 premium taxes paid Source: Insurance Information Institute by Ohio insurers ranked 8th highest in the country. $
485,086,000
2013:
$
(Insurance Information Institute)
502,022,000
2014:
$
523,000,000
2015:
$
541,600,000
2016: Millions $420
$596,300,000 440
$
$
460
480
$
500
$
Home sweet home
Ohio is home to 242 company headquarters, including 136 P/C, 38 life and 25 health insurers. Our US rankings: • 4th based on domestic life/ annuity companies • 6th based on domestic P/C insurance companies and • 9th in health insurers calling Ohio home. 1,747 insurance companies and purchasing groups are licensed to conduct business in the Buckeye state. This includes 972 P/C insurance companies, 479 life/annuity insurers, 45 health insurance companies, 53 fraternal benefit societies and 48 other types of carriers, among others. (National Association of Insurance Commissioners 2015 Insurance Department Resources Report)
520
$
540
$
560
$
580
$
$600
$620
For more information • Ohio Insurance Institute................... 614-228-1593 www.ohioinsurance.org • Ohio Department of Insurance........ 614-644-2658 www.insurance.ohio.gov • Ohio FAIR Plan................................... 800-282-1772 www.ohiofairplan.com • Ohio Automobile Ins. Plan.................614-221-2596 www.assignedriskohio.com • Ohio Assn. of Health Plans............... 614-228-4662 www.oahp.org • Assn. of OH Life Ins. Companies....... 614-227-2374 www.aolic.com • OH Insurance Guaranty Assn............614-442-6601 www.ohioga.org • Insurance Careers ........ www.insurancecareers.org • Insuring OH Futures... www.insuringohiofutures.com • Insurance Information Institute: “How Insurance Supports Ohio’s Economy”...... http://bit.ly/2aq9Eef • Additional resources.............. http://bit.ly/1pxA5h3
