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How the Property & Casualty Insurance Industry Supports the Florida Economy |
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08/06/2007 |
May 15, 2007
Prepared by the American Insurance Association from data developed by A.M. Best & other sources
The insurance industry is a major investor in Florida's economic and community development.
Outlined below are a few key facts about the insurance industry in Florida.
Employment and income: Property-casualty insurers employed over 29,800 people in Florida in 2005.
This employment brought $1.6 billion of payroll income into the state and local economies of Florida.
Taxes: insurance companies operating in Florida pay a wide range of state and local taxes. State
premium taxes alone totaled over $764.5 million in 2005.
Investing in state and local government: Property-casualty insurers are a major source of capital for state and local government in Florida. According to an analysis of A.M. Best data, they held $13.3 billion in Florida municipal bonds in 2005 - approximately 12% of the state and local government debt in the state. Insurers invest in a variety of public projects, including highway, hospital, and airport construction, housing and water projects. Insurers also purchase general
obligation bonds that finance ongoing government operations.
Reimbursement for insured losses: The property-casualty insurance industry pays substantial amounts to reimburse Florida residents for accidents, property damage, and other personal and commercial insured losses. When catastrophes occur, such as during the 2005 hurricane season, these sums are even larger.
According to A.M. Best, in 2005, insurers paid out $8.4 billion for losses covered by residents' automobile insurance, $6.2 billion for losses covered by homeowners insurance, and $13.0 billion for commercial losses, a total of $27.6 billion personal and commercial propertycasualty losses.
Insurers paid Florida residents $16.0 billion in 2005 just for catastrophe-related personal and commercial property and automobile claims.
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