A Firm Foundation: How Insurance Supports the Economy

The insurance industry contributes to our economy far beyond its core function of helping to manage risk. Insurers contributed billions of dollars to the nation’s gross domestic product, pay billions in taxes, and invest heavily in state and local municipal bonds and loans, which helps 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, and employ 2.8 million people. See insurance industry at a glance for details.

The industry is also a major contributor to charitable causes. The property/casualty insurance industry increased charitable giving by an average of 15 percent per year since 2011 for a total of $575 million in 2015, according to a study by the Insurance Industry Charitable Foundation (IICF) and McKinsey and Co. Since its inception in 1994, the IICF had contributed more than $31 million in local community grants, and 300,000 volunteer hours to hundreds of community nonprofit organizations.

Each year in October the Insurance Industry Charitable Foundation promotes a Week of Giving, during which insurance industry employees volunteer at community programs throughout the country. For information on the insurance industry's contribution to community development see Impact, the Insurance Information Institute’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.