Insurance is an essential part of a strong economic foundation and sustained growth, yet few people are aware of its impact on fiscal health, according to the Insurance Information Institute.

Insurers play vital roles beyond managing risk, from helping communities recover after catastrophes to investing in municipal bond markets, the New York-based institute says in a new report.

“Insurance is the lifeblood of any developed economy, because it enables individuals, businesses and even governments to transfer risk to further invest and grow,” CEO Sean Kevelighan says.

All industries benefit from property and casualty cover because it pays for losses that might otherwise put people out of business, the institute says. In particular, motor repair, construction, healthcare and legal services derive a good portion of their income from insurer claim payments.

“When property and casualty insurance claims are paid, funds flow to the industries that supply claimants with the goods and services necessary for their recovery,” the report says.

“When life insurance claims are paid, funds flow into the general economy as beneficiaries spend the money they receive.”

Latest figures show 2.7 million US citizens are employed in property and casualty and life insurance.

The sectors contributed $US602.7 billion ($870.87 billion) to US GDP in 2017, about 3.1% of the total, and paid $US21 billion ($30.34 billion) in tax – equating to $64 for every citizen.

See the report here.