A new report from the Federal Reserve said the life insurance and annuities industries is one of the biggest sources of capital investment in the United States right now. Businesses, governments and organizations rely on life insurance to help expand financial transactions and operations.
“At the same time, life insurers' primary responsibility is to their policyholders; they offer services and products related to wealth preservation, retirement savings and estate planning,” said IBISWorld industry analyst Sophia Snyder.
Investment income fell in the industry by 12.4 percent in 2010, but in 2011, declines slowed and 2012 is expected to see an increase of 1.4 percent. Revenue is expected to continue to see an increase through 2013.
Any improvement should be good, as industry revenue declined at an average rate of 6.2 percent in the five years leading to 2012. Revenue fell to $745.6 billion from 2007 to 2012.