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 $285 billion in such bonds in 2019, and the life insurance industry invested $215 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, 2015-2019

($ billions, end of year)

  2015 2016 2017 2018 2019
Property/casualty insurance companies $357.5 $350.7 $338.9 $291.6 $285.2
Life insurance companies 177.3 185.2 197.8 190.0 215.0
Total $534.8 $535.9 $536.7 $481.6 $500.2

Source: Board of Governors of the Federal Reserve System, June 11, 2020.

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