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 P/C insurance industry invested $298 billion in such bonds in 2020, and the life insurance industry invested $234 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, 2017-2021

($ billions, end of year)

  2017 2018 2019 2020 2021
Property/casualty insurance companies $338.9 $291.6 $285.2 $297.9 $289.4
Life insurance companies 197.8 190.0 215.0 234.2 234.9
Total $536.7 $481.6 $500.2 $532.1 $524.3

Source: Board of Governors of the Federal Reserve System, June 9, 2022.

View Archived Tables