EXECUTIVE SUMMARY

A KEY DRIVER FOR NE ECONOMY

The insurance industry is a key driver of the Nebraska economy. A significant share of industry business is “exported” to customers located in other states and nations and the industry is an important source of high wage employment in the state. The insurance industry also provides opportunities to retain younger Nebraskans within the state and has a significant economic and tax revenue impact.

This report by the University of Nebraska-Lincoln Bureau of Business Research (UNL-BBR) provides a profile of the Nebraska insurance industry for the year 2022, both statewide and in individual regions such as the Omaha Metropolitan Area (MSA) and the Lincoln MSA. The report also estimates the annual economic and tax revenue impact of the Nebraska insurance industry for the year 2022 and compares 2022 impacts with impact estimates from 2015. In particular, economic and tax revenue impacts from 2022 are compared with estimated impacts for the year 2015 in the report 2015 Economic Impact of the Nebraska Insurance Industry by the UNL-BBR. Both the current report and the 2015 report were developed for the Nebraska Insurance Federation.

KEY FINDINGS

THE HARD FACTS AND DATA

The Nebraska insurance industry is one of the biggest sectors of the Nebraska economy, generating billions of dollars of economic impact in Nebraska and tens of thousands of high paying jobs to Nebraskans. Below is the hard data and findings from our research.

  • The total tax revenue impact, including taxes and fees paid directly to the Nebraska Department of Insurance, was $502.4 million in 2022.
  • The Nebraska insurance industry had 32,400 jobs in 2022.
  • The Nebraska economy also specializes in insurance activity. Nebraska had 66 percent more jobs in the insurance industry in 2022 than would be expected in a state of its size. This is the second highest concentration among any state.
  • Nebraskans statewide benefit from employment opportunities in insurance industry businesses. Approximately sixty percent of Nebraska insurance industry employment is found in the Omaha MSA with about 15 percent of the jobs in the Lincoln MSA and another 25 percent in the other regions of the State.
  • The Nebraska insurance industry also contributes to brain gain in Nebraska by helping the state retain and attract new workers. The industry generates 1,180 job openings each year due to net job growth or retirements from the industry. These occupations provide new job opportunities to a mix of 4-year college graduates and high school graduates.
  • A survey of Nebraska insurance companies indicated that internships play an important role in recruiting new workers. The most important work-related factors to attract workers were the remote/hybrid model, compensation, flexible hours/workdays and opportunities for career/leadership development.

  • The insurance industry also has a substantial annual economic impact on Nebraska. The estimated impact was $25.77 billion during 2022. This impact included $4.06 billion in labor income supporting approximately 58,500 jobs.

  • The insurance industry is a high wage industry. The average annual wage among insurance carriers and related activities was $85,604 during 2022. This is 49 percent more than the average for all private employment in Nebraska. Wage growth also is solid for employees at insurance industry businesses. Average annual wages grew by 4.0 percent per year from 2015 to 2022, above the rate of inflation.