Insurers with large footprint on California’s economic force

Posted on: Wednesday, January 23, 2013

The insurance leads that result in sales do wonders for a given state's economy, as recently revealed in an earnings report released by California officials.

According to recent analysis, the $2 trillion California economy is due in large part to the revenue that derives from the property and casualty insurance industry as well as agents' insurance prospecting practices. The Insurance Information Network of California reports that in 2010 alone, insurers added nearly $30 billion to the Golden State's gross state product, or what amounts to nearly 2 percent of the overall value of goods and services produced there.

The jobs that Californians have are also largely due to the state's insurance industry. IINC says there are more insurance professionals in California than any other state. In fact, among property and casualty insurers exclusively, there are more than 209,000 agents and representatives. That's roughly one-tenth of the insurance workforce across the country.

The U.S. Census Bureau reports that California has an unemployment rate of roughly 9.8 percent, a level that's dropped off significantly from previous months.

Candysse Miller, executive director of IINC, indicated that insurers in California, no matter what their specialty may be, help improve the state's economic vitality.

"From auto insurance to homeowner insurance to business insurance, insurers provide millions of Californians with a blanket of security underwriting risks and contributing to the state's economic engine," said Miller.

Though California's economic prowess has declined in recent years, it's still a worldwide leader from a gross domestic product standpoint. In fact, the Golden State's GDP is in the same range as many industrialized European nations, such as Italy and Spain.

Posted In: Insurance News, Property & Casualty Insurance

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