A new report shows the impact of the insurance industry in Texas and the contributions it makes to the state.
In addition to providing financial security and helping manage risk for Texans in all walks of life, insurance companies invested nearly half a trillion dollars in the Texas economy in 2017 through municipal bonds, stocks, and mortgage and real estate loans, helping keep the economy going strong, according to the report: Covering Texas: How the Insurance Industry Works for Texas.
The report was jointly prepared by state and national insurance trade associations.
“Insurance makes it possible for Americans to effectively manage the risk of the unexpected challenges we face in life and business. But the insurance industry offers equally valuable, but often overlooked, broad economic advantages,” the report says. “Beyond offering security and peace of mind to customers, Texas insurers are a leading source of capital and investment in the state’s economy, funding municipal bonds, industrial expansion and home buying. Insurance companies have a vast and diversified impact on the Texas economy that affects every business and family in the state.”
The report found that insurers invested $472 billion in the Texas economy in 2017, in everything from homes to farms to municipal projects like water systems, roads and local schools.
The report also details how, in 2017, Texas insurance companies:
- Paid $40.3 billion to Texans for property and casualty losses;
- Paid $22 billion to Texans for catastrophic-related claims;
- Paid $395 million to Texans for medical claims;
- Paid $29 billion to Texans for life insurance and financial products; and
In addition, Texas insurers were the sixth-largest source of tax revenue for the state in FY 2018, at $2.51 billion, and also supported — directly or indirectly — 279,553 Texas jobs.
This report details how, in ways both expected and sometimes surprising, the insurance industry in Texas helps people, communities and employers minimize risk, navigate difficult periods, and secure financing for both public works and private businesses.
The full report available online at https://talhi.memberclicks.net/assets/docs/SiteRef-Legislative/Texas_Insurance_Economic_Impact_Report_web.pdf.
This report is a collaborative effort of state and national insurance trade associations including:
- Texas Association of Life and Health Insurers (TALHI)
- American Property Casualty Insurance Association (APCIA)
- Texas Association of Health Plans (TAHP)
- American Council of Life Insurers (ACLI)
- Association of Fire and Casualty Companies in Texas (AFACT)
- National Association of Mutual Insurance Companies (NAMIC)
- National Association of Insurance and Financial Advisors-Texas (NAIFA-Texas)
- Independent Insurance Agents of Texas (IIAT)
- Insurance Council of Texas (ICT)
- Texas Association of Health Underwriters (TAHU)
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