The Role of Insurance Investments in the U.S. Economy

According to a recent report by the US Chamber of Commerce, Insurance investments have these major impacts on the U.S. economy:

• First, insurers play a unique role in the capital markets since they tend to be long-term investors and are able to take on additional liquidity risk; Also, they are able to stabilize financial markets and prioritize longer-term growth.

• Second, insurers invest differently than other investors would, due to the long duration of their liabilities and a need to take fewer credit risks; Thus their asset allocation criteria is different than US households and hold more investments in asset classes such as corporate bonds or municipal securities.

• Third, within asset classes, insurers play a significant role in certain specific types of investments and projects to fuel economic growth; Notably insurers fund a variety of infrastructure, housing and business investment.

Please click here to see the report.