Report Details How Conn. Economy Still Depends Upon Insurance Sector

December 11, 2006

Connecticut remains dependent upon the insurance sector for many of its jobs and much of its economic growth, a new report by an industry coalition confirms.

The state has triple the U.S. average of insurance carrier jobs and the highest concentration of such jobs among all states, according to the study. While Connecticut’s share of total U.S. employment is just 1.2 percent, its share of total U.S. insurance carrier employment is 3.9 percent.

The report was issued by Insure Connecticut’s Future and the Connecticut Insurance and Financial Services Cluster to highlight the insurance industry’s economic contribution to the state.

States after Conn. with highest concentration of insurance carrier jobs are Nebraska, Iowa, Wisconsin, New Hampshire, Minnesota, New Jersey, Ohio, North Dakota, Massachusetts, Pennsylvania, Rhode Island, Maine and Illinois.

Insurance carrier wages represent 6.1 percent of the state total, the highest in the U.S., and Connecticut ranks first in economic output (Gross State Product) generated by the industry.

In 2004, the insurance carrier industry in Connecticut contributed $210 million in personal wage taxes and $244 million in premium taxes.

Insurance carrier employment has grown 2.4 percent in Connecticut since 1995. Nationwide insurance jobs grew 4.6 percent.

The discouraging news is that the insurance carrier industry has the slowest projected growth rate over the next 10 years in the overall Insurance and Financial Services sector— only 4.1 percent growth compared to 29.6 percent for securities and 16.8 percent for mutual funds and other financial vehicles.

The analysis, titled Connecticut’s Insurance Industry: Economic Impacts & Contributions, was prepared by the Connecticut Economic Resource Center, Inc.

Other highlights from the report include:

There are nearly 68,000 insurance carriers jobs in Connecticut, which in turn create another 91,000 in other industries. The insurance carriers also purchase nearly $1 billion in goods and services from other state industries.

Though insurance carrier jobs are up 2.4 percent in Connecticut 1995-2005, they are up 8.8 percent in Iowa over the same time period.

Insure Connecticut’s Future is a non-profit 501(c)(6) coalition of insurance companies whose mission is to rebuild public awareness of Connecticut’s leadership in the insurance industry, and to educate people about the positive impact of the industry on the state’s quality of life.

Current members of the coalition are Aetna, Anthem Blue Cross and Blue Shield, ConnectiCare, Genworth Financial, The Hartford, Hartford Steam Boiler, MassMutual, The Phoenix Companies, Prudential Financial and St. Paul Travelers. Coalition partners include the Insurance Association of Connecticut, and the Insurance and Financial Services Cluster.

Source: Insure Connecticut’s Future
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