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 2019 property/casualty (P/C) and life insurers' incurred federal and foreign taxes were about $18 billion dollars. P/C and life/annuity insurance companies also paid $23.6 billion in premium taxes in 2019, or $72 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, 2015-2019

($000)

Year Property/casualty Life Total
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 7,245,077 3,397,276 10,642,353
2019 8,514,508 9,435,327 17,949,835

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

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