A Firm Foundation: How Insurance Supports the Economy

Contribution To Gross Domestic Product

Gross Domestic Product (GDP) is the total value of all final goods and services produced in the economy. The GDP growth rate is the primary indicator of the state of the economy.On an annual basis, the insurance industry’s value added to the GDP exceeded that of banks for the first time in 2015 and has remained above banks. In 2017, the insurance industry’s value added to GDP stood at 3.1 percent compared with 2.9 percent for the banking industry. 

Insurance Sector's Share Of Gross Domestic Product (GDP), 2013-2017

($ billions)

    Insurance carriers and
related activities
Year Total GDP GDP Percent of total GDP
2013 $16,691.5 $406.2 2.4%
2014 17,427.6 473.1 2.7
2015 18,120.7 559.5 3.1
2016 18,624.5 585.9 3.1
2017 19,390.6 602.7 (1) 3.1

(1) Preliminary.

Source: U.S. Department of Commerce, Bureau of Economic Analysis.

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