US insurers, unlike the banks, “operated normally” throughout the global financial crisis and continue to bolster the US economy, says Insurance Information Institute President Robert Hartwig.

Testifying at a recent House of Representatives subcommittee, Dr Hartwig reviewed the economic benefits US insurers provide to the country’s economy.

He says 44% of the US property/casualty insurers’ cumulative bond portfolios “were invested last year in municipal securities issued by all 50 states and thousands of counties, cities and towns”.

“In other words, the nation’s auto, home and business insurers held, as a group, municipal bonds that in 2011 served to finance $US331 billion ($321 billion) in governmental projects such as building and improving schools, roads, bridges, as well as transit and healthcare facilities.”

Dr Hartwig says the US insurance industry employed around 2.2 million people, with 1.4 million working directly for insurers and reinsurers and the rest employed at insurance agencies, brokers and other insurance-related enterprises.

His testimony emphasised the importance of avoiding “bank-centric regulations” which could impact the insurance industry.

He says it is important to distinguish between the insurance industry’s operating record and that of the banking sector.

“The bottom line is that the insurance industry’s capital resources are at or near all-time record highs and are growing,” he said.

“The strength of the industry is without parallel within the financial services segment.”

US insurers contributed $US404.6 billion ($392.3 billion) to the nation’s gross domestic product in 2010.