A Firm Foundation: How Insurance Supports the Economy

The insurance industry is a major source of tax revenue on the state and federal level. In 2016 property/casualty (P/C) and life insurers' incurred federal and foreign taxes were about $23.6 billion dollars. P/C and life/annuity insurance companies paid $22.5 billion in premium taxes in 2018, or $69 for every person living in the United States, according to the U.S. Department of Commerce.

Insurance Industry's Federal And Foreign Income Taxes Incurred, 2014-2018

($000)

Year Property/casualty Life Total
2014 $10,318,207 $10,106,056 $20,424,264
2015 10,188,539 10,566,280 20,754,818
2016 7,314,767 16,282,427 23,597,195
2017 -784,873 12,360,768 11,575,895
2018 7,244,680 3,633,099 10,877,779

Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.

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