This is the 35th year the NAIC has published this report
The National Association of Insurance Commissioners (“NAIC”) has published its annual Insurance Department Resources Report (IDRR). The Report, released in two separate volumes each year, has been published annually for the past 34 years.
The first of the two-volume report focuses on the resources and regulatory activities of the 56 NAIC-member jurisdictions including the 50 states, in addition to U.S. territories like Guam and Puerto Rico. The report is organized into five different sections:
- Staffing;
- Budget and Funding;
- Examination and Oversight;
- Insurance Producers; and
- Consumer Services and Antifraud.
Key facts from Volume 1
The following are three key highlights from the overall report which takes a look at the year 2021, the last year for which full data is available. The full report which contains many more data points can be obtained from the NAIC:
- There were 5,978 domestic U.S. insurers in 2021.
- Revenues collected increased 2.7% to $29.8 billion in 2021.
- State insurance departments received over 259,345 official complaints and 1.5 million inquiries.
Total Number of Domestic Insurers & Regulated Entities in Massachusetts
The chart below illustrates the number of Domestic Insurers there are in each state throughout the country as of 2021. Focusing on New England, Massachusetts had a total of 83 Domestic Insurers, up from 78 in 2020, while Vermont has 109, New Hampshire, 57, Maine 22, Rhode Island 30, and Connecticut 102.
Trend of Domestic Insurers over the years
Another interesting and informative graph from the report shows the overall trend in the number of domestic insurers across the country since 2012.
Domestic Insurers in both Massachusetts & New England by type:
The following graphs break down the numbers between domestic and foreign insurance in each of the New England states.
| TYPE OF DOMESTIC INSURER | MASSACHUSETTS | VT | NH | ME | CT | RI |
|---|---|---|---|---|---|---|
| Life/Annuities | 16 | 1 | 0 | 3 | 26 | 1 |
| Property/Casualty | 47 | 11 | 47 | 11 | 65 | 20 |
| Health | 17 | 5 | 10 | 8 | 9 | 8 |
| Fraternal | 2 | 0 | 0 | 0 | 1 | 0 |
| Title | 1 | 1 | 0 | 0 | 0 | 0 |
| Risk Retention Group | 0 | 84 | 0 | 0 | 1 | 0 |
| Other | 0 | 7 | 0 | 0 | 0 | 0 |
Foreign Insurers in both Massachusetts & New England by type:
| TYPE OF FOREIGN INSURER | MASSACHUSETTS | VT | NH | ME | CT | RI |
|---|---|---|---|---|---|---|
| Life/Annuities | 372 | 345 | 329 | 344 | 345 | 383 |
| Property/Casualty: | 748 | 739 | 791 | 745 | 769 | 792 |
| Health | 6 | 19 | 46 | 6 | 2 | 11 |
| Fraternal | 26 | 15 | 17 | 13 | 35 | 26 |
| Title | 19 | 16 | 19 | 20 | 21 | 19 |
| Risk Retention Group | 123 | 48 | 89 | 84 | 108 | 88 |
| Other | 129 | 37 | 0 | 0 | 0 | 53 |
2022/2023 Insurance Department Budgets
The Massachusetts Division of Insurance is funded 100 percent by a combination of fees and assessments. For the upcoming year, the projected 2023 budget for the Division is $16,335,817, placing it as the 33rd largest state budget.
For comparison purposes, the 10 states with the largest insurance department budgets are as follows (in descending order of their 2023 Budget):
| STATES | 2023 BUDGET |
|---|---|
| 1. California | $245,487,000 |
| 2. Georgia | $175,999,759 |
| 3. New York | $159,830,000 |
| 4. Texas | $122,522,914 |
| 5. Florida | $81,688,921 |
| 6. New Jersey | $76,299,000 |
| 7. Illinois | $67,768,400 |
| 8. Alabama | $64,334,383 |
| 9. North Carolina | $64,323,278 |
| 10. Ohio | $44,394,449 |
Revenues, Fees, Fines & Penalties for Massachusetts and the other New England states
The Massachusetts Division of Insurance had revenues totaling $634,799,685 in 2023. The breakdown of the Division’s funding and expenses is 80% for Administration and Regulation expenses and the remaining 20% covering Operational expenses.
The following is a look at the most recent revenue numbers for both Massachusetts and the other New England states:
| REVENUES | MA | VT | NH | ME | CT | RI |
|---|---|---|---|---|---|---|
| Total Revenues | $634,799,685 | $100,915,730 | $138,922,515 | $102,389,365 | $243,227,167 | $188,780,381 |
| Total Taxes | $410,534,088 | $57,895,419 | $114,920,709 | $89,762,245 | $85,648,453 | $142,288,082 |
| Fees & Assessments Collected | $224,198,167 | $42,387,707 | $23,915,006 | $12,466,988 | $155,586,378 | $2,130,354 |
| Fines & Penalties | $67,430 | $632,604 | $86,800 | $160,132 | $1,992,336 | $9,623 |
| Other Revenue | $0 | $0 | $0 | $0 | $0 | $44,352,322 |
Financial, Market Conduct Exams and Formal Hearings
The Massachusetts Division of Insurance completed 129 examinations in 2019; in 2020 it conducted 21 Financial Exams and three Market Conduct Exams for a grand total of 24. The following chart takes a look at Massachusetts as compared to the rest of the New England region during 2021.
| STATE | FINANCIAL EXAMS | MARKET CONDUCT EXAMS | TOTAL |
|---|---|---|---|
| Massachusetts | 19 | 4 | 23 |
| New Hampshire | 15 | 4 | 19 |
| Maine | 5 | 1 | 6 |
| Connecticut | 9 | 49 | 58 |
| Rhode Island | 9 | 0 | 9 |
| Vermont | 22 | 2 | 24 |
Insurance Producers
The following charts take a look at the percentage of Resident versus Non-Resident Producers, Licensed Producers/Adjusters, and Actions Against Producers as of 2021, for both Massachusetts as well as for the rest of the New England region.
Resident v. Non-Resident Producers
| STATE | INDIVIDUAL RESIDENT | INDIVIDUAL NON-RESIDENT | BUSINESS ENTITY RESIDENT | BUSINESS ENTITY NON-RESIDENT |
|---|---|---|---|---|
| Massachusetts | 29,652 | 140,871 | 2,275 | 5,812 |
| New Hampshire | 6,654 | 104,328 | 537 | 6,700 |
| Maine | 7,639 | 198,044 | 826 | 6,841 |
| Connecticut | 20,835 | 147,369 | 1,733 | 9,383 |
| Rhode Island | 5,603 | 100,286 | 346 | 3,802 |
| Vermont | 2,214 | 85,386 | 140 | 4,461 |
Licensed Producers/Adjusters
| STATE | PRODUCERS | SURPLUS LINE BROKERS | BAIL BONDS | ADJUSTERS | OTHER |
|---|---|---|---|---|---|
| Massachusetts | 177,460 | 3,496 | 0 | 322 | 5,143 |
| New Hampshire | 110,982 | 3,098 | 0 | 84,442 | 0 |
| Maine | 205,683 | 2,354 | 0 | 20,272 | 0 |
| Connecticut | 168,204 | 2,684 | 239 | 106,180 | 1,503 |
| Rhode Island | 106,852 | 2,140 | 0 | 85,449 | 2,683 |
| Vermont | 87,626 | 1,202 | 14 | 69,993 | 62 |
Actions Against Producers
| STATE | NUMBER OF FINES | AMOUNT OF FINES | NUMBER OF RESTITUTIONS | AMOUNT OF RESTITUTION | OTHER |
|---|---|---|---|---|---|
| Massachusetts | 7 | $12,350 | 0 | $0 | 0 |
| New Hampshire | 46 | $112,050 | 1 | $10,322,171 | 2 |
| Rhode Island | 0 | $0 | 0 | $0 | 0 |
| Connecticut | 3 | $20,500 | 0 | $0 | 6 |
| Maine | 4 | $160,200 | 0 | $0 | 1 |
| Vermont | 0 | $0 | 0 | $0 | 2 |
Consumer Complaints & Inquiries
In addition to the above information, the NAIC also tracks the number of consumer complaints and inquiries state insurance departments have received over the course of the year. The following is a breakdown of the complaints for Massachusetts as well as for the rest of New England in 2021:
| STATE | CONSUMER COMPLAINTS | CONSUMER INQUIRIES |
|---|---|---|
| Massachusetts | 1,800 | 5,000 |
| New Hampshire | 850 | 3,744 |
| Rhode Island | 260 | 865 |
| Connecticut | 4,580 | 13,092 |
| Maine | 435 | 4,642 |
| Vermont | 299 | 2,611 |
