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Q: What drives Hartford, CT's economy? ( Answered 5 out of 5 stars,   0 Comments )
Subject: What drives Hartford, CT's economy?
Category: Business and Money
Asked by: shikibobo-ga
List Price: $20.00
Posted: 20 Oct 2004 09:41 PDT
Expires: 19 Nov 2004 08:41 PST
Question ID: 417586
Insurance, no doubt, but make the case. Discuss what 9/11 and all the
natural disasters are doing to the insurance industry and outlook as
it relates to Hartford.

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Subject: Re: What drives Hartford, CT's economy?
Answered By: googlenut-ga on 22 Oct 2004 22:12 PDT
Rated:5 out of 5 stars
Hello shikibobo-ga,

As you have stated, the insurance industry is a major economic driver
of the Hartford region, with employment of more than 48,000 at
Insurance Carriers & Related Activities, and more than 70,000 employed
in the overall Insurance and Financial Services industry. However,
government (state and local) is the largest employer with more than
90,000 employees.  The educational and health services, manufacturing,
and trade sectors are also significant.

Based on the data that I have found, the September 11, 2001 attacks
and the recent hurricanes have not had a significant long-term impact
on the insurance industry or on Hartford.  The insurance industry in
Connecticut is expected to continue to grow.


Connecticut Department of Labor
The Connecticut Economic Digest
August 2004
A detailed look at Connecticut industry in 2003
(See page 14 ?Hartford LMA Nonfarm Employment Estimates?)

MetroHartford Alliance
Insurance and Financial Services Cluster
?The Insurance and Financial Services (IFS) industry is a driving
force within the State of Connecticut, particularly within the
MetroHartford region. The statistics are impressive, with the
insurance and financial services industry employing over 140,000
people in 2002 throughout the state. Within MetroHartford, over 70,000
people are employed in the industry, directly accounting for one in
every 10 jobs in the region. The industry?s productivity figures are
equally remarkable, with productivity in the Knowledge Corridor along
Interstate 91 that outpaced the nation in 2000, $120,000 versus
$80,000 when measured in real output per worker. As part of the
state?s overall economic picture, the industry again demonstrates its
magnitude: between 1990 and 2000 the share of the Gross State Product
(GSP) contributed by the finance, insurance, and real estate industry
grew from 8.3 percent in 1990 to fully 13.6 percent in 2000.?

MetroHartford Alliance
Insurance And Financial Services In Connecticut: 
Key Statistics
?IFS Represents 22% of Direct and Indirect Employment in Metro Hartford?

MetroHartford Alliance
Major Employers

Connecticut Department of Labor
The Connecticut Economic Digest
February 2004
A TALE OF SEVEN CITIES: clues to the Hartford region's economic future?


Insurance Information Institute
?September 11, 2001: The First Year
One Hundred Minutes of Terror that Changed the Global Insurance Industry Forever?
?As of July 2002, no primary insurers and only one reinsurer had
failed, principally due to an overexposed position in the aviation
reinsurance market, while one other had stopped writing new business.

The fact that so few insurers became insolvent was due to one factor:
spread of risk. As of July 2002, 119 insurers (nonlife, life and
reinsurers) worldwide had publicly announced exposure to the attack.
Generally speaking, larger companies with the greatest financial
resources (i.e., capital/surplus) suffered the heaviest losses, while
smaller companies with more limited resources experienced fewer losses
(Exhibit 4). Widespread use of reinsurance was essential to this
spread of risk. Gross losses (i.e., losses prior to adjusting for
reinsurance receivables) exceeded net losses (losses after adjusting
for reinsurance receivables) by an estimated $27 billion. In other
words, approximately $27 billion in reinsurance was in play in
September 11-related loss settlements.?
(Page 7)

See the following link for the tables and additional information:

Insurance Information Institute
PAPER: September 11: One Hundred Minutes of Terror that Changed the
Global Insurance Industry Forever

Connecticut employment numbers in the Finance, Insurance, & Real
Estate (FIRE) industry showed a small decrease between 2001 and 2002.

MetroHartford Alliance
(Click on tab titled ?Employment Growth?)

Finance, Insurance, & Real Estate (FIRE) Employees
               2002     2001
Total          141,800  142,500
Finance        53,700   53,900
Insurance      71,900   72,100
Real Estate    16,200   16,600

Yahoo Finance
Motley Fool
Frances to Hit Hartford
?It helped that the insurance companies, having seen what damage could
be inflicted when Andrew plowed through in 1992, charged premiums that
adequately covered their risks, and the State of Florida stepped in to
provide insurer of last resort coverage.?


?The insurers say they're ready and prepared. This may well be the
case, though the hit to their capital structures caused by the dual
storms is certainly unwelcome. This is, of course, what insurers are
supposed to do, though. But just because the industry on the whole is
prepared doesn't mean that every participant is. Just like the
deflector shields on the Starship Enterprise, there's only so much
financial beating they can take. The inability to pay by a weaker
insurer or re-insurer might not constitute the same level of disaster
that the large-scale bankruptcies from Andrew caused, but they would
be disasters to those impacted nonetheless.?

The Stamford Advocate
Well-managed insurers weather any storm,0,771992.story
?"If you assume these 2004 hurricanes in aggregate will be similar to
Hurricane Andrew, the loss from Andrew in 1992 represented a very
meaningful 10 percent of the capital of the industry, while today it
would represent about 5 percent," said Michael Paisan, principal with
Legg Mason Wood Walker in New York. "The capital base of the insurance
industry has grown dramatically the last few years because
profitability has been good."

Secondly, they have more financial backup when they need it. In
Florida, the state-run Hurricane Catastrophe Fund that was created
after Andrew's devastation provides reasonably priced reinsurance
coverage for insurance firms doing business in that state. The fund is
financed by policyholder premiums.?

Connecticut Department of Labor
The Connecticut Economic Digest
April 2002
(See page 4, ?Industry Profile Insurance Carriers And Agents?)


So, class, what do Aetna, The Hartford, Hartford Steam Boiler,
Phoenix, and Travelers all have in common? If you guessed the City of
Hartford, Connecticut, the insurance capital of the world, then go to
the head of the class. You guessed right!

Despite the diversification of our economy in the last decade, recent
data shows that the insurance industry continues to be one of the most
important industries in Connecticut.?



According to the Career Guide to Industries, published by the U.S.
Bureau of Labor Statistics, employment in the insurance industry
nationally is projected to increase six percent between 2000 and 2010,
more slowly than the 16 percent average for all industries combined.
Connecticut?s forecast follows the national trend. According to a
recent Connecticut Department of Labor forecast, the insurance
industry is projected to gain 7.9 percent in employment between 1998
and 2008, while all other industries will do slightly better at 9.7


Other references:

Connecticut Economic Resource Center (CERC)
Town Profile 2004
Hartford, Connecticut

U.S. Department of Labor
Bureau of Labor Statistics  
Hartford, CT Economy at a Glance

U.S. Census Bureau
The 2003 American Community Survey
Hartford, CT MSA
Economic Development


I hope you have found this information helpful.  Please let me know if
you have any questions.


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"hartford economy"

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