Life insurers collect premiums from policyholders and, because their payouts — like death benefits or annuities — often happen years down the line, they have a big pool of cash to invest in the meantime. With trillions in assets under management, insurers invest heavily in state-level projects, from municipal bonds funding schools and highways to real estate and corporate loans that spark job growth. On top of that, the industry employs upwards of an estimated 7.4 million people nationwide. Thus, the life insurance industry is a financial powerhouse quietly shaping state economies across the U.S.
With this in mind, SmartAsset estimated the per capita investments in state economies by the life insurance industry, as well as the per capita rate of jobs the industry creates in each state.
Key Findings
- The life insurance industry invests most into the economy in this state. North Dakota has the highest per capita investment in the economy by the life insurance industry, with $38,269 per person estimated, or a total of $30 billion. New York state has the second highest investment per capita by the life insurance industry at $31,526 per person. Delaware follows for a close third at $31,011.
- Connecticut has the most jobs in the life insurance industry. Per capita, Connecticut leads with employment in life insurance. There are an estimated 0.021 jobs in this industry per resident, more than three times as much as the nationwide median. The estimated number of people employed in the life insurance industry in Connecticut is 77,700.
- Nearly a quarter million people work in the life insurance industry in California. Despite having the most raw people in the industry, California actually comes in lower than the nationwide median of life insurance workers per capita at 0.006. However, the investment into the economy by this industry is above the nationwide median of $17,716, coming in at $23,662 per resident.
Top 10 States With the Highest Investments in the State Economy
States are ranked based on the gross dollars invested into the economy over one year by the life insurance industry per capita.
- North Dakota
- Industry investment into economy per capita: $38,269
- Life insurance industry jobs per capita: 0.0059
- Number of industry jobs: 4,600
- Total investment into state economy in one year: $30,000,000,000
- Population: 783,926
- New York
- Industry investment into economy per capita: $31,526
- Life insurance industry jobs per capita: 0.0071
- Number of industry jobs: 138,700
- Total investment into state economy in one year: $617,000,000,000
- Population: 19,571,216
- Delaware
- Industry investment into economy per capita: $31,011
- Life insurance industry jobs per capita: 0.0061
- Number of industry jobs: 6,300
- Total investment into state economy in one year: $32,000,000,000
- Population: 1,031,890
- Connecticut
- Industry investment into economy per capita: $27,093
- Life insurance industry jobs per capita: 0.0215
- Number of industry jobs: 77,700
- Total investment into state economy in one year: $98,000,000,000
- Population: 3,617,176
- Massachusetts
- Industry investment into economy per capita: $26,423
- Life insurance industry jobs per capita: 0.0101
- Number of industry jobs: 71,000
- Total investment into state economy in one year: $185,000,000,000
- Population: 7,001,399
- Minnesota
- Industry investment into economy per capita: $23,876
- Life insurance industry jobs per capita: 0.0103
- Number of industry jobs: 59,100
- Total investment into state economy in one year: $137,000,000,000
- Population: 5,737,915
- California
- Industry investment into economy per capita: $23,662
- Life insurance industry jobs per capita: 0.0061
- Number of industry jobs: 236,500
- Total investment into state economy in one year: $922,000,000,000
- Population: 38,965,193
- Nebraska
- Industry investment into economy per capita: $22,240
- Life insurance industry jobs per capita: 0.0100
- Number of industry jobs: 19,700
- Total investment into state economy in one year: $44,000,000,000
- Population: 1,978,379
- New Jersey
- Industry investment into economy per capita: $22,172
- Life insurance industry jobs per capita: 0.0102
- Number of industry jobs: 94,400
- Total investment into state economy in one year: $206,000,000,000
- Population: 9,290,841
- Alaska
- Industry investment into economy per capita: $21,816
- Life insurance industry jobs per capita: 0.0017
- Number of industry jobs: 1,280
- Total investment into state economy in one year: $16,000,000,000
- Population: 733,406
Top 10 States With the Most Jobs in the Life Insurance Industry
States are ranked based on the number of jobs in the life insurance industry per capita.
- Connecticut
- Life insurance industry jobs per capita: 0.0215
- Industry investment into economy per capita: $27,093
- Number of industry jobs: 77,700
- Total investment into state economy in one year: $98,000,000,000
- Population: 3,617,176
- Iowa
- Life insurance industry jobs per capita: 0.0171
- Industry investment into economy per capita: $20,268
- Number of industry jobs: 54,800
- Total investment into state economy in one year: $65,000,000,000
- Population: 3,207,004
- Georgia
- Life insurance industry jobs per capita: 0.0121
- Industry investment into economy per capita: $17,590
- Number of industry jobs: 133,300
- Total investment into state economy in one year: $194,000,000,000
- Population: 11,029,227
- Illinois
- Life insurance industry jobs per capita: 0.0112
- Industry investment into economy per capita: $20,877
- Number of industry jobs: 140,000
- Total investment into state economy in one year: $262,000,000,000
- Population: 12,549,689
- Maine
- Life insurance industry jobs per capita: 0.0105
- Industry investment into economy per capita: $15,762
- Number of industry jobs: 14,600
- Total investment into state economy in one year: $22,000,000,000
- Population: 1,395,722
- Minnesota
- Life insurance industry jobs per capita: 0.0103
- Industry investment into economy per capita: $23,876
- Number of industry jobs: 59,100
- Total investment into state economy in one year: $137,000,000,000
- Population: 5,737,915
- New Jersey
- Life insurance industry jobs per capita: 0.0102
- Industry investment into economy per capita: $22,172
- Number of industry jobs: 94,400
- Total investment into state economy in one year: $206,000,000,000
- Population: 9,290,841
- Massachusetts
- Life insurance industry jobs per capita: 0.0101
- Industry investment into economy per capita: $26,423
- Number of industry jobs: 71,000
- Total investment into state economy in one year: $185,000,000,000
- Population: 7,001,399
- Nebraska
- Life insurance industry jobs per capita: 0.0100
- Industry investment into economy per capita: $22,240
- Number of industry jobs: 19,700
- Total investment into state economy in one year: $44,000,000,000
- Population: 1,978,379
- Pennsylvania
- Life insurance industry jobs per capita: 0.0099
- Industry investment into economy per capita: $18,825
- Number of industry jobs: 128,500
- Total investment into state economy in one year: $244,000,000,000
- Population: 12,961,683
Data and Methodology
Data comes from the American Council of Life Insurers (ACLI) for 2022 for 41 states with available data. Investment and job data per capita estimates are based on the latest Census Bureau population estimates.
Questions about this study? Contact us at press@smartasset.com
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