Insurance good for financial security,
great for Oregon economy
PORTLAND - Insurance provides financial security for millions
of Oregon residents and makes a major contribution to the economy
across the Northwest. At the most fundamental level, insurance
is the foundation for economic interaction and nearly all commerce.
New data released by the American Insurance Association shows
the insurance industry in Oregon is a key part of the state's
"Insurance makes it possible to buy a car or a home, start a
small business and build communities, said Karl Newman, president,
NW Insurance Council. "Insurance also provides quality employment
opportunities to thousands of Oregonians."
Insurer premium taxes and bond investments directly finance construction
and maintenance of critical public services such as roads and
bridges, schools and affordable housing.
Insurance companies headquartered both here and in other states,
employed more than 4,000 Oregon residents in 2005 and brought
more than $221.9 million in payroll income into the state and
local economies. Overall, U.S. Census Bureau statistics show that
insurance carriers and related services - including agents and
brokers - employ more than 33,611 Oregon residents.
Also in 2006, insurers paid more than $61.5 million in premium
taxes to Oregon State government, including primary funding for
the State Fire Marshal's Office.
"Insurers help fuel Oregon's economy," said Newman. "Insurance
companies doing business in Oregon help make state and local projects
a reality by purchasing a significant number of municipal bonds."
Property & Casualty (P&C) insurers purchased $4.1 billion in
Oregon municipal bonds in 2005. That equals 16 percent of outstanding
government debt throughout the state.
"Perhaps most importantly, insurance companies are there when
policyholders need them most - helping Northwest residents recover
from accidents, illnesses and other personal and commercial insured
losses," Newman said.
In 2006, P&C insurers paid $2.7 billion to Oregon residents and
businesses for insured losses. This included $1.1 billion for
auto insurance losses, $184 million for losses covered by Homeowners
Insurance and $1.5 billion for commercial losses. Insurance claim
payments also support local businesses, enabling them to provide
jobs and pay taxes that support the local economy. These businesses
include the auto parts and repair industries, the building construction
and supply industries, health care services and legal services.
For more about how insurance companies support local and state
economies, contact NW Insurance
Council at (800) 664-4942.
Sources: American Insurance Association, A.M. Best, Insurance
Information Institute and U.S. Census Bureau.
NW Insurance Council is a nonprofit, public-education organization
funded by member insurance companies serving Washington, Oregon