June 1, 2007
CONNECTICUT INSURANCE INDUSTRY
By: Janet L. Kaminski, Associate Legislative Attorney
You asked for a summary of the economic impact of Connecticut's insurance industry and information concerning its projected growth rate.
The Connecticut Economic Resource Center, Inc. prepared a report on the state insurance industry in December 2006, from which the following information is taken. The report may be viewed at http://bestpolicy4ct.com/news_events/release_20070502.php.
● There are 72 insurance headquarters in Connecticut.
● There were more than 65,000 insurance jobs in Connecticut in 2004. The Connecticut Department of Labor projects a 4% growth rate through 2014, the slowest rate within the insurance and finance sector.
● Connecticut has three times the U.S. average of insurance jobs as a percent of total state employment.
● Connecticut has the highest U.S. concentration of insurance jobs.
● The average annual Connecticut insurance industry wage is $61,846, with average wages ranging from about $33,000 to $118,000.
● Annual state insurance industry payroll exceeds $6 billion.
● The total value added by the insurance industry in Connecticut in 2004 was about $12.2 billion.
● Insurance companies purchase almost $1 billion in goods and services from other industries in Connecticut annually.
● One new job in the insurance industry results in an additional 1.35 jobs in the Connecticut economy.
● Connecticut insurance companies paid $210 million in personal income taxes in 2004 and $244 million in premium taxes in 2004-2005.
INDUSTRY GROWTH RATE
There were 65,640 insurance jobs in Connecticut in 2004. From 1995 to 2005, Connecticut insurance employment grew 2.4%, the 18th worse insurance job growth rate nationally. In comparison, Iowa's insurance industry grew by 8.8% during the same period.
From 2004 to 2014, the Connecticut Department of Labor (DOL) projects a net employment increase of 2,670 insurance company jobs to 68,310 total jobs, which is a 4% growth rate. This is the department's slowest projected growth rate within Connecticut's insurance and finance sector for the time period.
We await information from DOL to explain its projected growth for the insurance industry. We will revise this report to incorporate this information as soon as we receive it.