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Fact Sheet 


Insurers’ Contribution to the Florida and U.S. Economies

Insurance affects everything and everything affects insurance.  It is generally understood that insurance allows people to produce goods and services without the fear that some adverse incident could leave them destitute or unable to function.  However, few people are aware of the extraordinary impact the industry has on state local and national economies.

•    The insurance industry contributed $270 billion to the $11.7 trillion gross domestic product (GDP) in 2004, accounting for 2.3 percent of total GDP.

•     In Florida insurers contribute more $12 billion to the Florida gross state product (GSP), accounting for 2 percent of the Florida GSP.

•    Insurance companies invest the premium they collect in state and local municipal bonds, helping to fund the building of roads, schools and other public projects.

•    Insurance companies provide businesses with capital for research, expansions and other ventures through their investments in corporate equities and bonds. 

•    The property/casualty insurance industry’s total assets exceed $1.4 trillion.  Assets of insurers domiciled in Florida total more than $17.6 billion.

•    U.S. Bureau of Labor Statistics data show that the insurance industry (all sectors) provided 2.32 million jobs in 2005, or about 2.1 percent of private industry’s 111.7 million employees.  The insurance industry provided some 172,000 jobs in Florida, accounting for $9.3 billion in compensation.

•    Insurance company claims payments help ensure the economic security of individuals and businesses, and help sustain a number of related industries.  In 2005, these payments, as measured by direct incurred losses, reached over $300 billion nationally and nearly $30 billion in Florida.  Life insurance benefits claims payouts totaled $356 billion nationally and $20.9 billion in Florida in 2005.

•    Insurance companies, including life/health and property/casualty companies, paid $14.8 billion in premium taxes to the 50 states in 2005.  On a per capita basis, this works out to $50 for every person living in the United States. Florida premium taxes totaled $764.6 million.


DEFRAYING THE ECONOMIC COSTS OF DISASTERS

•    The insurance industry plays a vital role in helping individuals and businesses prepare for and recover from the potentially devastating effects of a disaster such as a catastrophic hurricane or earthquake.

•     In 2005 property/casualty insurers paid out $61.8 billion in catastrophe losses, with five hurricanes—Katrina, Wilma, Rita, Ophelia and Dennis—accounting for $57.7 billion in insured damages, or 93 percent of total 2005 losses.

•    Seven of the 10 most expensive hurricanes in U.S. history impacted Florida:  Hurricanes Andrew, Katrina, Wilma, Charley, Ivan, Frances and Jeanne.

•    Florida has the most insured coastal property in the nation—nearly $2 trillion

Life Insurance Facts


Life Insurers in Florida

•    559 life insurers are licensed to do business in Florida and 16 are domiciled in the state

•    It is estimated that 12,500 workers in Florida are employed in the life insurance industry.  Life insurers also generate additional jobs by purchasing goods and services from other businesses in the state

Investments in Florida’s Economy
•    Life insurance companies invest approximately $216 billion of their assets in Florida’s economy.

•    About $175 billion of this investment is in stocks and bonds that help finance business development, job creation, and services in the state

•    Life insurers provide $18 billion in mortgage loans on farm, residential and commercial properties, and own $2 billion in real property in Florida

Residents Protected

•    Florida residents have $1 trillion in death benefit coverage

•    State residents own 8 million individual life insurance policies, with coverage averaging $98,400 per policyholder

•    Group life insurance coverage amounts to $350

•    Individual life insurance coverage purchased during the year in Florida totals $109 billion

Benefits Paid

•    $18 billion was paid to Florida residents in the form of death benefits, natured endowments, policy dividends, surrender values and other payments.

•    Annuity benefits paid in the state totaled $4 billion.

Life Insurers in the United States

•    With $4 trillion invested in the U.S. economy, life insurers are one of the largest sources of investment capital in the nation.

•    Life insurers are the largest source of bond financing for American corporations, including $1.9 trillion invested in 2005.

•    Life insurers provide benefit payments in excess of $300 billion each year, helping families guarantee long term financial security now and in retirement.