U.S. Chamber of Commerce issued the following announcement on March 5.
The U.S. Chamber of Commerce’s Center for Capital Markets Competitiveness (CCMC) today released a report that explores the role of the insurance industry in U.S. capital markets.
The report, which was released at an event featuring Allstate Chair, CEO, and President Tom Wilson, is the first to explore the impact investment insurance firms have on the U.S. economy.
“The business of insurance is more than collecting premiums and paying claims. It’s about building roads, schools, and Main Street businesses, and providing reliable long-term financing for all sectors of our economy,” said David Hirschmann, president and CEO of CCMC. “Policymakers should recognize the vital contributions the insurance industry provides to the U.S. economy and work to put policies in place that will help harness those growth-generating investments.”
U.S. insurance companies finance long-term improvements in the U.S. real economy that drive much-needed municipal infrastructure investments; support developers as they improve and construct commercial and multifamily properties; help farmers purchase needed land, buildings, and equipment; and fund a wide variety of business activity.
The report finds that U.S. insurance assets totaled approximately $5.8 trillion as of December 2017. In addition, U.S. insurers have an outsize share of asset classes like corporate bonds (21 percent) and municipal bonds (20 percent). The industry’s investments in education projects through municipal bond purchases could build about 1,000 elementary schools every year. Likewise, its annual investments in municipal bonds for transportation projects could build a road from Washington, D.C., to Los Angeles every year.
“Insurance companies are one of the largest investors in America with a $5.8 trillion portfolio supporting the public and private sectors,” said Wilson. “We enable governments to build roads, corporations to innovate, and individuals to pursue their dreams. Insurers are coming together with legislators and regulators to ensure we have the ability to continue supporting American prosperity.”
The report is available online at https://www.centerforcapitalmarkets.com/wp-content/uploads/2019/03/CCMC_InsurancePaper_v2.pdf
Since its inception in 2007, the Center for Capital Markets Competitiveness has led a bipartisan effort to modernize and strengthen the outmoded regulatory systems that have governed our capital markets. The CCMC is committed to working aggressively with the administration, Congress, and global leaders to implement reforms to strengthen the economy, restore investor confidence, and ensure well-functioning capital markets.
The U.S. Chamber of Commerce is the world’s largest business federation representing the interests of more than 3 million businesses of all sizes, sectors, and regions, as well as state and local chambers and industry associations.
Original source can be found here.