The Connecticut insurance sector plays a vital role in the global insurance landscape and the state’s economy — and the state is well-positioned to remain as the U.S. insurance capital, a new report said.
Connecticut ranks first nationally in insurance employment as a percentage of total state employment. The insurance industry represents approximately 3 percent of Connecticut’s workforce, 6 percent of the state’s payroll and 9 percent of the gross state product, according to the 2012 Connecticut Insurance Market Report.
Nearly 61,600 people in Connecticut were directly employed in the insurance industry in 2011, according to its findings. That number is expected to grow by about 10 percent in the next decade, the report predicted.
The report was published last week by PricewaterhouseCoopers US and the Connecticut Insurance and Financial Services (IFS) Cluster, at the insurance market forecast event in Hartford, Conn.
While Connecticut comes in first in the nation in terms of insurance employment as a percentage of the overall employment, it ranks ninth when comparing the number of workers in the insurance industry. Texas has the most number of workers in the insurance sector. It’s followed by California, New York, Ohio, Florida, Pennsylvania, Illinois and New Jersey.
Insurance also impacts other sectors of Connecticut’s economy, the study said. The report says that one new job in the insurance industry adds an additional 1.46 jobs to the Connecticut economy; an increase of $1 in insurance labor income puts an additional $0.78 into state commerce; and every year the insurance industry purchases an average of $2 billion in goods and services from other industries in Connecticut.
“The 2012 Connecticut Insurance Market Report clearly highlights the importance of this sector to Connecticut’s economy and encourages collaboration among industry, government and academic stakeholders to ensure it continues to grow,” said Paul Veronneau, principal and advisory leader for PricewaterhouseCoopers’ Hartford office.
“We believe that through continued teamwork and investment in the industry, the state will maintain its global insurance leadership role well into the future.”
Looking forward, the report emphasizes that competing globally, investing in education, retaining and developing human capital, and government-led economic development initiatives are essential to maintaining the state’s leadership position in the industry and growing its economy.
Source: Connecticut Insurance and Financial Services (IFS) Cluster and PricewaterhouseCoopers US