Insurance Literacy Month

NAIP and D.C. lawmakers establish the nation’s first “Insurance Literacy Month”

Because insurance is among the most complex financial products that many consumers will purchase in their lifetime, uninformed consumers may buy policies on unfavorable terms.  To help increase insurance literacy of consumer in Metro DC, NAIP and D.C. lawmakers worked together to establish the nation’s first “Insurance Literacy Month”.

ACR 20-240, The Insurance Literacy Month Recognition Resolution of 2014

A CEREMONIAL RESOLUTION 20-240

IN THE COUNCIL OF THE DISTRICT OF COLUMBIA

September 23, 2014

To recognize the importance of insurance literacy and to establish the month of October as “Insurance Literacy Month” in the District of Columbia.

WHEREAS, October will commence a series of events and activities seeking to educate the public on the importance of insurance literacy, and unbiased policy reviews that are available to District Residents;

WHEREAS, insurance products and services make up a significant fraction of the national economy and are important in household budgeting and financial planning;

WHEREAS, insurance is among the most complex financial products that many consumers will purchase in their lifetimes and some policyholders may not understand all the fees and coverages included in a policy;

WHEREAS, uninformed residents may buy policies on unfavorable terms;

WHEREAS, nearly a fifth of adult residents of the District of Columbia lack basic literacy skills and more than 60,000 are without a high school credential; and

WHEREAS, informed insurance consumption decisions require consumers to choose an appropriate level of coverage, to understand policy terms and contractual features, to compare services and financial soundness of competing insurers, and to understand their rights and responsibilities under the contracts.

IT IS HEREBY RESOLVED, BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, that the Council of the District of Columbia hereby declares October to be Insurance Literacy Month and encourages District residents to increase insurance literacy, to review their existing policies, and to ensure they have adequate coverage to meet their needs.

            Sec. 2. This resolution may be cited as the “The Insurance Literacy Month Recognition Resolution of 2014”.

            Sec. 3. This resolution shall take effect immediately upon the first date of publication in the District of Columbia Register.

Corporate Office

National Association of Insurance Professionals, Inc.

6234 Georgia Avenue, NW

Washington, DC 20011

Fax:       202-829-0030

Phone: 202-241-0356

 

Insurance Industry Facts

  • U.S. insurance industry net premiums written totaled $1.2 trillion in 2017, with premiums recorded by life/annuity (L/A) insurers accounting for 52 percent, and premiums by property/casualty (P/C) insurers accounting for 48 percent, according to S&P Global Market Intelligence.
  • P/C insurance consists primarily of auto, home and commercial insurance. Net premiums written for the sector totaled $558.2 billion in 2017.
  • Health insurance is generally considered separate. The sector includes private health insurance companies as well as government programs. P/C and L/H insurers also write some health insurance.
  • Although most private health insurance is written by companies that specialize in that line of business, life/annuity and property/casualty insurers also write this coverage, referred to as accident and health insurance on their annual statements. Total private health insurance direct written premiums were $867.5 billion in 2017, including: $670.1 billion from the health insurance segment; $190.8 billion from the life/annuity segment; and $6.5 billion from property/casualty annual statements, according to S&P Global Market Intelligence.
  • There were 5,954 insurance companies in 2017 in the U.S. (including territories). According to the National Association of Insurance Commissioners those were comprised of the following: P/C (2,509); life/annuities (852); health (907); fraternal (82); title (58); risk retention groups (240) and other companies (1,306).
  • Insurance carriers and related activities contributed $602.7 billion, or 3.1 percent, to the nation’s gross domestic product (GDP) in 2017, according to the U.S. Bureau of Economic Analysis.
  • The U.S. insurance industry employed 2.7 million people in 2018, according to the U.S. Department of Labor. Of those, 1.5 million worked for insurance companies, including life and health insurers (870,600 workers), P/C insurers (621,800 workers) and reinsurers (29,100 workers). The remaining 1.2 million people worked for insurance agencies, brokers and other insurance-related enterprises.
  • Total P/C cash and invested assets were $1.69 trillion in 2017, according to S&P Global Market Intelligence. Life insurance and annuity cash and invested assets totaled $4.1 trillion in 2017; separate accounts assets and other investments totaled $2.7 trillion. The total of cash and invested assets for both sectors was $8.5 trillion. Most of these assets were in bonds (58 percent of P/C assets and 73 percent of life/annuity assets, excluding separate accounts).
  • P/C and life/annuity insurance companies paid $21 billion in premium taxes in 2017, or $64 for every person living in the United States, according to the U.S. Department of Commerce.
  • P/C insurers paid out $101.9 billion in property losses related to catastrophes in 2017, according to the Property Claims Services (PCS) division of Verisk Analytics, the highest since PCS began collecting insured loss data in 1949. The $101.9 billion in losses in 2017 was 370 percent higher than $21.7 billion in 2016.  There were 46 catastrophes in 2017, compared with 42 in 2016.

Property/Casualty And Life/Annuity Insurance Premiums, 2018 (1)

(US$ billions)

(1) Property/casualty: net premiums written after reinsurance transactions, excludes state funds; life/annuity: premiums, annuity considerations (fees for annuity contracts) and deposit-type funds. Both sectors include accident and health insurance.

Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.

Employment In Insurance, 2009-2018

(Annual averages, 000)

 

(1) Establishments primarily engaged in initially underwriting insurance policies.
(2) Includes establishments engaged in underwriting annuities, life insurance and health and medical insurance policies.
(3) Includes claims adjusters, third-party administrators of insurance funds and other service personnel such as advisory and insurance ratemaking services.

Source: U.S. Department of Labor, Bureau of Labor Statistics.

A property/casualty insurer must maintain a certain level of surplus to underwrite risks. This financial cushion is known as “capacity.” When the industry is hit by high losses, such as a major hurricane, capacity is diminished. It can be restored by increases in net income, favorable investment returns, reinsuring more risk, and/or raising additional capital.

Property/Casualty Insurance Industry Income Analysis, 2014-2018 (1)

($ billions)

 

(1) Data in this chart exclude state funds and other residual market insurers and may not agree with similar data shown elsewhere from different sources.

Source: ISO®, a Verisk Analytics® business.

Top 10 Writers Of Property/Casualty Insurance By Direct Premiums Written, 2018

($000)

 

(1) Before reinsurance transactions, includes state funds and accident and health insurance.
(2) Based on U.S. total, includes territories.

Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.

Top 10 Writers Of Life/Annuity Insurance By Direct Premiums Written, 2018

($000)

 

(1) Includes life insurance, annuity considerations, deposit-type contract funds and other considerations, and accident and health insurance. Before reinsurance transactions.
(2) Based on U.S. total, includes territories.

Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.

Life/Annuity Insurance Income Statement, 2014-2018

($ billions, end of year)

 

(1) Calculated from unrounded data.

NA=Not applicable.

Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.

 

10 reasons why an insurance career is great for millennials

By Liz Aguinaga, February 3, 2017

The insurance industry is a great place to start — and grow — your career. From underwriter to data scientist to claims adjuster, there are jobs for a variety of different skills, and these jobs need to be filled ASAP.

Due to the retirement of baby boomers and industry development, the insurance industry will be hiring 400,000 positions within the next three years, according to The Institutes, a risk and insurance professional development group.

Millennials are the future of insurance, and possess many of the qualities that industry recruiters are looking for, such as an affinity for teamwork, an entrepreneurial spirit and love for solving problems.

Now is an exciting time to work in insurance. If you don’t believe us, trust your peers: According to a 2016 study from insurance technology provider Vertafore, which polled 4,000 insurance professionals between the ages of 19 and 35, more than 80 percent of respondents say they plan to remain in the insurance industry for as long as possible.

Still not convinced? Discover 10 reasons why millennials love working for the insurance industry:

job search on laptop

There’s a place for a variety of skills and interests in the world of insurance.

1. There’s a job for your skills.

The scope of the industry goes far beyond the roles of insurance agent and broker. For example, if you have a degree in social science or a background in nursing, you could make an ideal claims professional. Working as an adjuster, appraiser, examiner or investigator taps into these learned skills of communication, empathy and deductive reasoning.

Are you in engineering? You could transfer your creativity, problem-solving, design and scheduling proficiencies to work in loss control or as a risk manager in outside industries such as the public sector, retail, hospitality or gaming. There’s a place for a variety of skills and interests.

financial significance to economy

The insurance industry has a positive effect on the economy.

2. Insurance careers are sustainable.

Like death and taxes, insurance has a long history — dating all the way back to 1347 in Genoa, Italy — and its need is a sure thing. According to The Institutes, the insurance industry employs more than 2.3 million individuals in America — that’s 115 times the number of jobs provided by Google, Facebook, Apple, Twitter and Yahoo combined.

The industry also has a positive effect on the economy, contributing $450.3 billion to the nation’s GDP in 2014, according to the Insurance Information Institute. Just as someone can’t purchase a home without proof of insurance, business owners cannot build or obtain financing for a commercial building without it. And without financing, businesses can’t develop, create jobs or contribute to their communities.

excited millennial workers

Millennials can exercise their entrepreneurial attitudes in the insurance industry.

3. Career advancement provides opportunities to learn.

Millennials can exercise their entrepreneurial attitudes in the insurance industry, especially in jobs that require creative thinking, problem-solving and a desire to help others. At CNA, for example, there’s a commitment to ensuring your professional development, whether it’s through on-the-job learning, defined courses, self-study or educational reimbursement. We also believe that millennials can further professional growth by volunteering or sitting on the board of a favorite charity, because those learned leadership and communication skills carry over to your career advancement.

young diverse professionals

Insurance roles entail communicating and collaborating with people from all different backgrounds.

4. Diversity is welcome.

At 87 million strong, millennials are the largest generational group in America, and also the most diverse. Insurance roles entail communicating and collaborating with people from all different backgrounds, and this experience will prove invaluable as the insurance industry expands to writing policies in emerging markets.

teamwork with all hands together

In the insurance industry, successful collaboration is important.

5. Teamwork is unavoidable.

Millennials recognize that working together is more efficient than struggling alone. In the insurance industry, successful collaboration identifies business opportunities and solves problems. No matter your role, you will work closely with a range of professionals — inside and outside of your own company.

drone applications listed on a computer tablet

The insurance industry needs millennials to manage risk related to driverless cars, drones, 3D printers, wearables and the Internet of Things.

6. The work is not boring.

Tech isn’t restricted to Silicon Valley. Now and for the foreseeable future, the insurance industry needs you to manage risk related to driverless carsdrones3D printerswearables and the Internet of Things.

In addition, there’s no “typical day” for insurance jobs. Whether it’s a new client or business risk, each day will bring its own challenges for you to solve.

tech innovation by millennials

The insurance industry is looking for millennials — true digital natives — to creatively use technology to solve problems and deliver risk solutions.

7. You will shape what insurance looks like for years to come.

The industry isn’t immune to the pace of change, or consumer demands on commerce, retail and technology. The insurance industry is looking at you — as true digital natives — to creatively use technology to solve problems and deliver risk solutions. In turn, carriers are stepping up innovation to meet the most rapid, large-scale change in our history.

young claims adjuster

Depending on your position, you may be working in the field to conduct insurance business.

8. Insurance offers a flexible work schedule.

Put it this way: It’s likely your insurance job won’t entail sitting behind a desk 24/7. Depending on your position, you may be working in the field to conduct insurance business. The industry respects millennials’ need to create their own lives, where family, friends, hobbies and work come together in balance.

man grieving his destroyed home

Insurance is driven by service and is there for people in some of the worst moments of their lives.

9. You’ll make a difference toward the common good.

Insurance is driven by service and is there for people in some of the worst moments of their lives. You will play a role restoring their property or business when catastrophe strikes. After Hurricane Katrina in 2006, insurance companies paid a combined $41 billion to policyholders to help them rebuild.

The property & casualty insurance industry is also driven by charity, donating $575 million in 2014, with the top program areas focusing on education, health and social services, and community needs, according to a report by the Insurance Industry Charitable Foundation and McKinsey and Co.

happy businessman

There’s a place for individuals with a variety of skills and backgrounds to lay down their career goals in the insurance industry.

10. Insurance is everywhere.

The backbones of the world’s economies are unable to exist without insurance. Every construction site, connected device, hospital, shopping center, airport, electrical grid and car is insurance at work — and you played a part in making that happen.

We want you to love working in the insurance industry, just as much as we do! There’s a place for individuals with a variety of skills and backgrounds to lay down their career goals, develop their skills and thrive to become one of tomorrow’s leaders in one of today’s most exciting industries.

Liz Aguinaga is senior vice president and chief officer of Human Resources at Chicago-based CNA Financial Corporation, a provider of insurance solutions. This article first appeared on CNA.com and is reprinted here with their permission.