Sector Supports $38.3 Billion in the State’s Economy, 138,000 Michigan Jobs
LANSING, Mich. — Michigan’s insurance industry is an economic driver supporting 138,000 jobs and directly investing $2.7 billion into the state’s economy each year, according to a new study released today.
The study highlights the statewide contribution that the insurance sector has on Michigan’s economy, and shows that the industry contributes $38.3 billion in annual spending and $9.1 billion in wages and salaries across the state. Having several large insurance providers headquartered in Michigan proves to be adding tremendous value to the state’s economy.
“Michigan’s insurance industry is deeply rooted in our state and plays a critical role in the success of our economy,” said Anita Fox, Director of the Michigan Department of Insurance and Financial Services. “The industry’s continued growth and it’s commitment to giving back is impressive and reinforces that insurance is a key part of Michigan’s DNA.”
The report also identified the need for new talent in the growing industry, specifically in the areas of IT professionals and software developers, actuaries and data analysts and customer service representatives.
“Michigan has become an “insurance hub”, and while it’s excellent that our industry continues to grow, it is essential that we attract and retain young talent to continue to have the manpower needed to effectively serve our customers” said X of X.
The report, completed by Public Sector Consultants, highlights:
- The industry, in direct and indirect economic output, helped drive $38.3 billion in spending.
- The industry supported 138,000 jobs, leading to $9.1 billion in earnings throughout Michigan. Top occupational categories within the industry are financial and business operations, office and administrative support, information technology and management.
- The insurance sector pays more than $1 billion in state and local taxes. These taxes include income and property assessments as well as a specific tax on all premiums written in Michigan.
- The insurance industry invests more than $2.7 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 $59.6 million to Michigan charitable organizations in 2017. What’s more, industry employees volunteered nearly 170,000 hours at sponsored charity events and activities.
“The insurance industry is a strong part of Michigan’s economy, growing over 16 percent since 2005 while many industries have declined, and has outpaced national trends,” said Melissa Gibson, senior consultant at Public Sector Consultants. “But the insurance industry is more than just an economic driver. Insurers make significant contribution to local communities through tax payments, investments, charitable giving, and volunteering.”
The “Insuring More For Michigan” report was prepared by Public Sector Consultants 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 Alliance of Michigan, the Michigan Association of Insurance Agents, the National Association of Insurance and Financial Advisors, Delta Dental, the Michigan Association of Health Plans, the American Council of Life Insurers and Blue Cross Blue Shield of Michigan.
The full report is available for download:
Media Contact: Matt Resch, email@example.com