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 and life insurers' incurred federal and foreign taxes were about $23.6 billion dollars. Insurance companies, including life/health and property/casualty companies, paid $21 billion in premium taxes to the 50 states in 2017. On a per capita basis, this works out to $64 for every person living in the United States.

Insurance Industry's Federal And Foreign Income Taxes Incurred, 2012-2016

($000)

Year Property/casualty Life Total
2012 $6,257,395 $9,866,018 $16,123,413
2013 12,038,618 8,554,055 20,592,673
2014 10,318,140 10,106,154 20,424,293
2015 10,188,465 10,566,567 20,755,031
2016 7,315,023 16,279,121 23,594,144

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

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