Charitable Contributions

Property/casualty and life/health insurance companies contribute to our economy far beyond their core function of helping to manage risk. Insurers contributed $413 billion to the nation’s gross domestic product in 2012. The taxes they pay include special levies on insurance premiums, which amounted to $17.4 billion in 2013, or 2.0 percent of all taxes collected by the states. Insurance companies invested $740.6 billion in state and local municipal bonds and loans in 2013, helping to fund the building of roads, schools and other public projects. They provide businesses with capital for research, expansions and other ventures through their holdings in stocks and bonds, a figure which totaled $3.9 trillion in 2013. The industry is also a major contributor to charitable causes. The Insurance Industry Charitable Foundation, established by the property/casualty insurance industry in 1994, has contributed more than $21 million in local community grants and 179,000 volunteer hours to hundreds of community nonprofit organizations. The sector is also a very large employer, providing some 2.4 million jobs, or 2.1 percent of U.S. employment in 2013.

Each year in October the Insurance Industry Charitable Foundation (IICF) promotes a Week of Giving, during which insurance industry employees volunteer at community programs throughout the country. The IICF was established in 1994 and is completely directed and funded by the insurance industry.

For information on the insurance industry's contribution to community development see Impact, I.I.I’s online resource highlighting the insurance industry's contributions to community development. Information on corporate giving (including contributions by insurance foundations) is also available from the Foundation Center.

 

BREAKDOWN OF THE PROPERTY/CASUALTY INSURANCE INDUSTRY'S CHARITABLE GIVING BY CAUSES, 2010

Source: McKinsey IICF survey, Center for Encouraging Corporate Philanthropy, Giving by Numbers 2010, McKinsey analysis.

  • Of the $500 million donated by PC insurers, 80 percent was in the form of direct cash contributions. The remainder was employee donations of cash or volunteer hours.