Wisconsin’sInsuranceIndustry.pdfVIP

Wisconsin’s Insurance Industry The Wisconsin insurance industry is a very important component of local, state and national economies. The industry consists of 377 domestic carriers in addition to agents brokers (2005). A major employer, the industry group is Wisconsin’s 11th largest with average monthly employment of 63,631 (‘05). The industry is also well paying at an average, annual wage of $51,267 (’04). Forecasted to continue to be a major economic growth component in the state, the industry will add 8,080 new jobs by 2014. A national leader, the Wisconsin insurance industry represents the 6th largest concentration of insurers in the U.S. In economic terms, an export-base industry, the Wisconsin insurance industry cluster produces nationwide goods and services and brings in new dollars (exports) in support of Wisconsin and Wisconsin’s local economies. For 2005, the insurance industry will contribute almost $150 million in premium taxes and fees to Wisconsins general fund and an estimated $189 million in income tax on insurance wages. Insurance Industries are Important Insurance Industry Components Bringing in new dollars to the state in the form Total personal income is often used to of nationwide premiums – insurance (location measure the size of an economy. The pie quotient (L.Q.) = 1.4) is an export-base depicts the total wages (earnings) paid by industry (L.Q. 1) and a Wisconsin growth components of the insurance industry. engine. These new dollars grow the The pie analogy is appropriate – this is the insurance carriers and pay wages salaries to economic pie from which people slice their their employees. This personal income is the livelihoods. dollars, which a