A Firm Foundation: How Insurance Supports the Economy

Insurance companies help fund the construction of schools, roads and healthcare facilities as well as a variety of other public sector projects through their investments in municipal bonds. The property/casualty insurance industry invested $294 billion in such bonds in 2018, and the life insurance industry invested $190 billion, according to the Federal Reserve. (See here and here for further information on insurance industry investments.)

Insurance Company Holdings Of U.S. Municipal Securities And Loans, 2014-2018

($ billions, end of year)

  2014 2015 2016 2017 2018
Property/casualty insurance companies $339.6 $357.5 $350.7 $338.9 $293.8
Life insurance companies 164.4 177.3 185.2 197.8 190.4
Total $504.0 $534.8 $535.9 $536.7 $484.2

Source: Board of Governors of the Federal Reserve System, June 6, 2019.

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