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A Firm Foundation: How Insurance Supports the Economy

Throughout the years, you've heard PIA make reference to the enormous contribution the insurance industry makes to the American economy. The Insurance Information Institute has...
December 16, 2008

Throughout the years, you've heard PIA make reference to the enormous contribution the insurance industry makes to the American economy. The Insurance Information Institute has produced a Web site, A Firm Foundation: How Insurance Supports the Economy, which is updated frequently. It details and explains the many ways that both property/casualty and life insurance contribute to our economy far beyond their core function of helping to manage risk.

Some highlights:

Insurance affects everything and everything affects insurance. It is generally understood that insurance allows those who participate in the economy to produce goods and services without the paralyzing fear that some adverse incident could leave them destitute or unable to function. However, few people are aware of the extraordinary impact the industry has on state, local and national economies.

The insurance industry is a major U.S. employer, providing some 2.3 million jobs that encompass a wide variety of careers, from human resource administrators to public relations managers to financial analysts.

Insurers contributed more than $280 billion to the nation's $13.1 trillion gross domestic product in 2006. Their taxes include special levies on insurance premiums, which amounted to over $15 billion in 2007, or about 2 percent of all taxes collected by the states. Insurers employed more than 2.3 million people in 2006, with wages approaching $200 billion.

A Firm Foundation: How Insurance Supports the Economy is an excellent resource and tool for anyone wanting to know just how important our industry is to our entire country. In addition to the website, the Insurance Information has released an updated version of a brochure that features highlights from the site.

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