Workers' compensation costs remain a significant component of expenses for most companies, and finding the best workers' comp coverage at the most reasonable price is critical to helping businesses manage their bottom line. But which carriers have the biggest share of the market?
The National Association of Insurance Commissioners (NAIC) has ranked the top 25 Workers' Compensation insurance companies and groups by market share of direct premiums written for 2016. Its latest report includes countrywide direct written premium for the top 25 groups and companies as reported on the State Page of the annual statement for insurers that report to the NAIC. This information serves as an indicator of the degree of market concentration in the Workers' Comp line of business as well as identifying leading insurance writers.
For 2016, direct written premiums totaled $58.2 billion for the top 25 carriers, up from 2015's $57.2 billion. The top 25 carriers accounted for 69.47 percent of the total direct premiums written, with the top 10 bringing in 47.33 percent, or about $27.6 billion. The top four carriers represent a little less than a quarter (23.53 percent) of total direct premiums written.
Old Republic Group dropped out of the top 10 to number 11, and Chubb Ltd. Group moved up from number 14 to number 6 after its acquisition by Ace Ltd. in January 2016.
Travelers Group and Hartford Fire & Casualty Group retained their number 1 and number 2 positions from 2015.
Continue reading to find out which companies ranked in NAIC's list of top 10 Workers' Compensation companies and groups in 2016 and where they ranked in 2016:
No. 10: State Compensation Insurance Fund (California)
2015 Ranking: 9
Direct Premiums Written, 2016: $1.61 billion
Direct Premiums Written, 2015: $1.64 billion
2016 Market Share: 2.77%
2015 Market Share: 2.87%
2016 Cumulative Market Share: 47.33%
No. 9: American International Group
2015 Ranking: 5
Direct Premiums Written, 2016: $2.1 billion
Direct Premiums Written, 2015: $2.6 billion
2016 Market Share: 3.68%
2015 Market Share: 4.48%
2016 Cumulative Market Share: 44.56%
No. 8: Liberty Mutual Group
2015 Ranking: 7
Direct Premiums Written, 2016: $2.4 billion
Direct Premiums Written, 2015: $2.5 billion
2016 Market Share: 4.13%
2015 Market Share: 4.34%
2016 Cumulative Market Share: 40.88%
No. 7: State Insurance Fund (New York)
2015 Ranking: 8
Direct Premiums Written, 2016: $2.4 billion
Direct Premiums Written, 2015: $2.4 billion
2016 Market Share: 4.18%
2015 Market Share: 4.26%
2016 Cumulative Market Share: 36.75%
No. 6: Chubb Ltd Group
2015 Ranking: 14
Direct Premiums Written, 2016: $2.6 billion
Direct Premiums Written, 2015: $1.2 billion
2016 Market Share: 4.39%
2015 Market Share: 2.09%
2016 Cumulative Market Share: 32.57%
No. 5: Berkshire Hathaway
2015 Ranking: 6
Direct Premiums Written, 2016: $2.7 billion
Direct Premiums Written, 2015: $2.5 billion
2016 Market Share: 4.64%
2015 Market Share: 4.34%
2016 Cumulative Market Share: 28.18%
No. 4: Zurich Insurance Group
2015 Ranking: 3
Direct Premiums Written, 2016: $2.8 billion
Direct Premiums Written, 2015: $2.9 billion
2016 Market Share: 4.88%
2015 Market Share: 5.00%
2016 Cumulative Market Share: 23.53%
No. 3: AmTrust NGH Group
2015 Ranking: 4
Direct Premiums Written, 2016: $3.1 billion
Direct Premiums Written, 2015: $2.7 billion
2016 Market Share: 5.34%
2015 Market Share: 4.80%
2016 Cumulative Market Share: 18.65%
No. 2: Hartford Fire & Casualty Group
2015 Ranking: 2
Direct Premiums Written, 2016: $3.3 billion
Direct Premiums Written, 2015: $3.3 billion
2016 Market Share: 5.71%
2015 Market Share: 5.81%
2016 Cumulative Market Share: 13.32%
Related: The Hartford Tops Auto Claims Study
No. 1: Travelers Group
2015 Ranking: 1
Direct Premiums Written, 2016: $4.4 billion
Direct Premiums Written, 2015: $4.5 billion
2016 Market Share: 7.60%
2015 Market Share: 7.81%
2016 Cumulative Market Share: 7.60%
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