A recently released study shows the positive contributions insurance industry brings to Michigan’s economy.
The report — Economic Footprint of Michigan’s Insurance Industry — by Anderson Economic Group shows the insurance sector as a whole provides an annual $37.1 billion in spending, 114,000 jobs, and $6.3 billion in earnings throughout Michigan. Multiple large insurance providers are headquartered in Michigan, adding tremendous value to the state’s economy.
The report’s authors say it shows a burgeoning need for fresh talent, promising continuing growth down the road.
Highlights of the report include:
- The industry’s $37.1 billion in spending, which includes direct and indirect economic output, jobs and earnings.
- Provider creation of 114,000 jobs, leading to $6.3 billion in earnings throughout Michigan. In particular, the sector is employing a growing number of high-tech, IT jobs in Michigan with more than 7,000 IT professionals in the sector across the state.
- The insurance sector pays more than $500 million in state and local taxes. These taxes include income and property assessments, as well as a special tax on all premiums written in Michigan. In addition, some companies reported paying another $13 million in other state taxes.
- The insurance industry invests more than $1 billion in Michigan companies, local government bonds, and real estate. These investments help pay for critical infrastructure and development across the state.
- The industry contributed more than $44 million to Michigan charitable organizations in 2014. What’s more, company employees volunteered more than 63,000 hours at company-sponsored charity activities.
“In the most basic sense, insurance companies help Michigan residents and businesses manage their risk and prepare for retirement,” said Alex Rosaen, director of Anderson Economic Group, who authored the report. “What is often less evident is the substantial impact the sector plays in Michigan’s overall economic development. To say it simply, the industry’s economic footprint in Michigan is significant and important.”
The Economic Footprint of Michigan’s Insurance Industry was prepared by Anderson Economic Group and commissioned by the Michigan Chamber of Commerce, the Lansing Regional Chamber of Commerce, the Lansing Economic Area Partnership, the Michigan Economic Development Corporation, the Life Insurance Association of Michigan, the Insurance Institute of Michigan, the Michigan Insurance Coalition, the Michigan Association of Insurance Agents, and the National Association of Insurance and Financial Advisors – Michigan.
The full report is available at andersoneconomicgroup.com.