The Hartford Region Is Home To The Headquarters Of Most Of The Leading Global Players In The Insurance Sector.
The insurance industry generates more than $16 billion in output in the region, employing more than 70,000.
As the “Insurance Capital of the World,” the Hartford Region plays a prominent role in the history of the insurance industry and it is leading the charge with a skilled workforce, an ideal and strategic location for cutting-edge advances in InsurTech innovation.
According to the Bureau of Labor Statistics (BLS), Connecticut’s insurance sector is a significant part of the state’s economy, creating more than $16 billion in output in the region. While the insurance landscape continues to evolve, the state’s insurance and financial services (IFS) companies are implementing strategies and technologies to enhance the customer and employee experience and create timely, innovative solutions to today’s challenges.
Serving as headquarters for globally leading insurance companies, including Aetna, ConnectiCare, The Hartford, HSB and Nassau—and home to major operations by Prudential, Travelers and UnitedHealthcare—CT Insurance Market Brief acknowledges that the Hartford Region boasts more than 70,396 employees who work in insurance-related jobs. Executives from these renowned insurance companies collaborate to enhance Connecticut’s economy through efforts like Connecticut Insurance and Financial Services (CT IFS), an initiative of the MetroHartford Alliance.
“What’s unique about CT IFS is the confluence of C-suite and executive leaders who leave their competitive hats aside to work collectively on strategic initiatives designed to strengthen and advance the industry in our State,” explains CT IFS Vice President and Executive Director Susan Winkler. “Since 2003, the CT IFS Board has leveraged Connecticut’s IFS industry across the U.S. and the world as a competitive advantage for growth in economic development.”
Per BLS, Hartford is also the #1 state in insurance jobs per capita. And, according to the labor market analytics firm, EMSI, with nearly 1,000 actuaries working in the state, Connecticut has the highest concentration of actuaries in the United States.
A STRATEGIC LOCATION FOR BUSINESSES
It’s no secret that Boston and New York are conveniently located next to Hartford, which enables IFS industry leaders to easily connect for meetings, networking, and events within a two-hour drive or commute via public transportation. One of the key advantages is the cost of living, which the Council for Community and Economic Research says is 21 percent less than Boston and 37 percent less than New York City.
For example, a 20,000-square-foot Class A office user can save over $700,000 per year in combined lease costs and state/local taxes over Boston and over $1 million annually when compared to New York City, according to the MetroHartford Alliance—CohnReznick Report, 2020.
In the current business climate, it’s also significant to note that Best Places ranked Hartford #3 mid-sized city for teleworking in 2020, while in 2019 the New York Times ranked it a top 10 destination for millennials and Bloomburg listed it as a top-five location for innovation.
Connecticut’s IFS industry also plays a key role in the worldwide insurance sector. Hartford is globally recognized for its innovative InsurTech ecosystem and the region draws companies from all over the globe. In 2018, multinational information technology corporation Infosys selected Hartford as one of six locations in the United States to house a regional Technology and Innovation hub, helping accelerate Hartford’s and Connecticut’s distinction for its innovation ecosystem.
Hartford’s moniker as “The Insurance Capital of the World” has helped draw interest from international startups in the InsurTech space, like Australian-based Flamingo Ai, which came to Hartford “because it was the right place for us to be,” says Head of North American Operations Bob Hilborn.
Early-stage InsurTech companies choose the Hartford Region because they recognize the value of locating in one of the world’s strongest insurance clusters, where they’ll find the resources needed to solve global issues in life, annuity, property and casualty, reinsurance, and digital health markets.
Brookings Institution (2018) says Hartford is a Top 5 economy in terms of digitalization, and it’s at the forefront of InsurTech innovation. Hartford executives understand how to innovate and adapt to changes in their economy. They comprehend how shifts in perspectives and new solutions are driving acceleration and innovation in the insurance industry.
With access to resources and key players in the industry, Hartford is well-positioned as an InsurTech hub. “The concentration of insurance companies in Hartford and Connecticut makes a strong case for startups seeking partners with our local insurers and for companies looking to expand into a market that fully understands the new world of insurance,” says Nassau Chief Marketing Officer Paul Tyler.
Seasoned, growing, and early-stage InsurTech companies recognize Hartford as an innovation hub and want to locate their businesses in the Hartford Region. According to Launc[H]artford, over the past three years, the region has fostered nearly 800 entrepreneurs and helped or scaled up more than 200 businesses.
Choosing a location for their InsurTech startup was an easy decision for Combined Ratio Solutions, which saw key advantages of being near large insurance companies. “There’s a history of insurance operations starting and being successful here,” explains Co-Founder and COO Luke Magnan. “It’s something Hartford does and there’s a certain cache to being in Hartford.”
In Hartford, the future for insurance is steeped in its history of success and a strong foothold in innovation.
“The tens of thousands of employees in the Insurance Capital with their years of experience and exceptional industry knowledge cannot be underscored,” emphasizes ConnectiCare President Eric Galvin. “We are steadfastly positioned to continue managing the evolution and innovation of the insurance industry as we establish best practices for the U.S. and the world.”
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