"Why should I care about the insurance industry?" Good question! One reason is property and casualty (PC) insurers and professionals have a positive impact in the daily lives of Arizona’s citizens. Insurance enables many personal transactions from buying a car or home to insuring the value of our personal property. It provides disability, rehabilitation and medical payments so people can recover from accidents and return to their daily lives. And it protects our livelihoods and businesses from economic losses.

The PC insurance industry also has a significant, positive impact on Arizona’s economy.

Competitive Insurance Marketplace – Over 953 different PC insurers in Arizona compete for business. Combined, they add over $1.3 trillion in assets to the state that enables Arizonans to drive cars, own homes, protect their property and operate businesses. (AZ Dept. of Insurance (DOI) 2009 Annual Report)

PC Insurance Jobs in Arizona – Over 41,000 insurance professionals (direct writer employees and agents, independent agents and brokers, and claims personnel residing in Arizona). (AZ DOI 2009 Annual Report)

PC Premiums Written -- $7.6 billion (AZ DOI 2009 Annual Report) [Data Trend: $8.1 billion in 2008; $8.4 billion in 2007; $8.2 billion in 2006]

PC Premium Tax Receipts to AZ -- $165.5 million, includes general fund revenue and revenues that support the retirement systems of Arizona’s fire and police personnel.  (AZ DOI 2009 Annual Report; 2% tax on $7.6 billion PC premiums written includes $13.5 million tax on fire premiums disbursed to state’s fire districts pension program, plus additional  $16.7 million auto premium tax disbursed to state’s Public Safety Retirement System.) In addition, in FY 2009-10, a $1 fee on auto insurance premiums generated $5.1 million that supports the AZ Automobile Theft Authority (AATA).

PC Claims/Losses Incurred -- $4.6 billion (AZ DOI 2009 Annual Report includes 30 lines of PC coverages) [Data Trend: $5 billion in 2008; $4.8 billion in 2007; $4.3 billion in 2006]

PC Investments in Arizona -- $9.4 billion of PC insurance assets were invested in Arizona municipal bonds. Insurers invest in a variety of public projects including airport, street, highway and water utility construction, as well as education-related bonds. Insurers also purchase general obligation bonds that finance ongoing government operations. (Insurance Information Institute (III), 2009)

(2011)