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 $289 billion in such bonds in 2021, and the life insurance industry invested $235 billion, according to the Federal Reserve.

Insurance Company Holdings Of U.S. Municipal Securities, 2018-2022

($ billions, end of year)

  2018 2019 2020 2021 2022
Property/casualty insurance companies $291.6 $285.2 $297.9 $289.4 $246.1
Life insurance companies 190.0 215.0 234.2 234.9 192.2
Total $481.6 $500.2 $532.1 $524.3 $438.3

Source: Board of Governors of the Federal Reserve System, September 9, 2023.

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