Impact of Insurance on Michigan's Economy
There are over 1,500 insurance companies helping to protect citizens in Michigan. It is estimated that nearly 50,000 persons are employed by the Michigan insurance industry.
And that doesn’t include the thousands of more jobs in the businesses that work with insurance companies, including everything from printers and accounting firms to shipping haulers and caterers. It also doesn’t include the jobs created by businesses patronized by those 50,000 employees. That number is estimated to be nearly 100,000.
Insurance companies also pay billions of dollars each year in claims and benefits to policyholders. These dollars are used to pay for medical care of those injured, rebuild and repair houses, repair automobiles and replace personal property, all of which create more jobs -- and stimulate additional economic development.
State and Local Revenue
Insurance companies pay more than $400 million annually to state and local government. This includes special licenses, sales, real estate and employment taxes, motor vehicle registration and retrieval fees.
Property/casualty insurance companies also pay a special assessment to the State of Michigan to fund regulation of its industry.
The industry also pays more than $206 million to fund special programs mandated by state law. An example of one of those programs is the Michigan Property Casualty Guaranty Association. MPCGA pays claims on behalf of insolvent insurance companies.
For more information about these special programs funded by the insurance industry, click here.
The insurance industry provides leadership and funding for crime prevention.
Property/casualty insurance companies are actively involved in the ongoing battle against crime in our state to help control insurance costs for everyone. They sponsor rewards for information which leads to the arrest of car thieves and arsonists.
They provide millions of dollars each year to fund auto theft prevention and detection initiatives. They work with law enforcement authorities to plan and implement anti-crime programs.
Investment in Michigan
Insurance companies provided $132 billion of investment capital in Michigan during 2010. The insurance industry is a prime source of capital for private and public interests. Insurance companies provide funding for corporate bonds and state/local bonds, which allow for the construction of schools, highways, hospitals, public housing, and other vital projects.