Insurance: Leading through disruption

This presentation, given by Insurance Information Institute CEO Sean Kevelighan, Chief Economist Steven Weisbart and Chief Actuary Jim Lynch, to the U.S. Department of the Treasury Federal Advisory Committee on Insurance (FACI), discusses the unique and strong position the insurance industry plays as a leader in the U.S. economy. Through a sustainable business model, as a strong employer and economic growth facilitator, the industry at the end of 2016 represented $5.8 trillion in assets under management, provided 2.8 million jobs—and contributed $508 billion (2.7 percent) to the GDP, nearly equaling that of banks. As major investors, insurers were behind 22 percent of outstanding corporate bonds and 15 percent of municipal bonds. While the industry faces disruption and challenges in several areas, including technology, catastrophes and consolidation, insurers still are able to expand the funds available to grow the economy, are important drivers of economic growth and remain an important instrument of social policy.