Coloradans Spent $26 Billion in Insurance Premiums in 2007

During 2007, Colorado citizens paid more than 26 billion dollars in insurance premium to approximately 1,306 companies, with 27 companies accounting for more than 50 percent of that total, according to the Colorado Insurance Industry Statistical Report released by the Colorado Division of Insurance.

The report reflects some interesting statistics: Although carrying automobile insurance is mandatory, and purchasing health insurance is not, Coloradans spent more in 2007 on accident and health insurance premiums, which represent 33 percent of the total insurance premiums paid in Colorado. Behind accident and health totals, the second largest premium volume was for annuities, with 16 percent of the total premium. Automobile insurance tied for third place, along with deposit-type funds (such as guaranteed investment contracts), with each accounting for 10 percent of the annual premiums. Life insurance accounted for 7 percent of Colorado’s total premiums.

“The statistical report can be very helpful because it illustrates the financial status of companies engaged in the business of insurance in Colorado and reflects which lines of business account for the largest payments of premium by Colorado consumers,” said Marcy Morrison, Commissioner of Insurance. “It shows the value that consumers place on insurance, and provides a snapshot of the general financial health of the insurance industry by showing loss ratios as well as premiums earned.”

The primary purpose of Colorado’s Annual Statistical Report is to document the financial status of companies engaged in insurance in the state. The report includes information related to commercial insurers, health maintenance organizations, nonprofit organizations, captives and self-insurance pools and represents figures as of Dec. 31, 2007, the last complete year for which data is available.

To view the 2007 Colorado Insurance Industry Statistical Report, visit: Topics Market Colorado