Michigan’s Insurance Hub
Michigan is home to nearly 10 million residents and has a significant number of insurance companies. A recent survey showed that Michigan has 1,679 regulated insurance entities, directly employing 80,000 people and providing billions in income for the state’s residents. Michigan has become known as a “hub” for the insurance industry, and even more growth is forecasted in the coming years.
The Economic Impact of Michigan’s Insurance Industry report commissioned by a coalition of economic and industry partners showed that:
The insurance industry spending in Michigan equates to $37.1 billion, which includes direct and indirect economic output, jobs and earnings.
The industry provides the creation of 114,000 jobs, leading to $6.3 billion in earnings throughout Michigan. In particular, the sector is employing a growing number of high-tech, IT jobs in Michigan with more than 7,000 IT professionals in the sector across the state.
The insurance sector pays more than $500 million in state and local taxes. These taxes include income and property assessments, as well as a special tax on all premiums written in Michigan. In addition, some companies reported paying another $13 million in other state taxes.
The insurance industry invests more than $1 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 $44 million to Michigan charitable organizations in 2014. What’s more, company employees volunteered more than 63,000 hours at company-sponsored charity activities.
