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 $327 billion in such bonds in 2017, and the life insurance industry invested $193 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, 2013-2017

($ billions, end of year)

  2013 2014 2015 2016 2017
Property/casualty insurance companies $335.6 $339.6 $345.8 $338.5 $327.0
Life insurance companies 146.0 164.4 171.2 179.0 192.7
Total $481.6 $504.0 $517.0 $517.5 $519.7

Source: Board of Governors of the Federal Reserve System, June 8, 2018.

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