Grand Rapids Emerges as Insurance Industry Hub
Grand Rapids is rapidly becoming a major hub for the insurance industry, with the area experiencing double-digit growth in insurance-related businesses in recent years. The downtown area is particularly attractive to high-profile companies relocating their headquarters. This trend is expected to continue, with economic developers and industry observers anticipating sustained growth in high-tech, high-wage jobs in the region.
Acrisure, referred to as the “800-pound gorilla” in the industry, moved its headquarters to downtown Grand Rapids in 2021 and has since experienced rapid growth. Other companies, such as OVD Insurance, have followed suit, acquiring buildings downtown to expand their operations. The insurance industry employed 11,700 people in the Grand Rapids metropolitan area as of 2024, with average earnings per job of $97,717.
Industry Growth and Statistics
- The insurance industry in Grand Rapids has grown by 7% since 2015.
- The number of payrolled business locations has increased by 23%, with 140 new businesses added in the past decade.
- Average earnings per job in the insurance industry stand at $97,717.
- Total employment in the insurance sector reached 11,700 in the Grand Rapids metropolitan area as of 2024.
Economic Impact and Future Prospects
“Our regional average wage is around $22 an hour, and the data show that these jobs in insurance companies are significantly higher,” said Andria Romkema, senior vice president of business development at The Right Place Inc. The industry’s growth is attributed to various factors, including the need for insurance services due to climate change and the desire of professionals to work in vibrant downtown areas.
Josh Van Vels, president of OVD Insurance, cited brand visibility and proximity to similar professional service firms as key reasons for moving downtown. The Right Place helped secure a $1 million Michigan Business Development Program performance-based grant to support OVD’s relocation.
Major Players and Developments
- Acrisure LLC, ranked as the world’s seventh-largest insurance brokerage, employs over 19,000 people globally.
- OVD Insurance is expanding its team from 120 employees to up to 250 in the next five years.
- Farmers Insurance Group and Priority Health are among the large employers in Kent County.
The trend of insurance companies moving downtown is likened to architecture firms relocating to be closer to their clients. “It’s more vibrant, and it’s where your client base is,” said Jenny Waugh of the Grand Rapids Area Chamber of Commerce.
Challenges and Opportunities
As the industry continues to grow, economic developers are focusing on capturing a larger share of this growth. The Right Place plans to include growth targets for the professional services industry, including insurance, in its next strategic plan for 2025-2028.
The insurance industry’s growth in Grand Rapids is expected to continue, driven by factors such as climate change and the region’s attractive business environment. With major companies like Acrisure leading the way, the region is poised to become a significant player in the insurance industry.
