Insurance Industry One of The Most Charitable
According to Internal Revenue Service data, the insurance industry is one of the most charitable industries in the United States, supplying close to $1 billion annually in assistance to charities in different sectors.
The most recent data from an analysis of IRS corporate tax returns by the Insurance Information Institute (I.I.I.) shows that insurers have contributed $924 million in charitable contributions with the property/casualty segment accounting for more than $500 million.
Additionally, each year in October, the Insurance Industry Charitable Foundation (IICF) promotes a Week of Giving, during which insurance industry employees volunteer at community programs throughout the US.
Established in 1994, the IICF is completely directed and funded by the insurance industry. Since 2001, the organization has contributed more than $18 million in grants to charities and 166,000 volunteer hours to hundreds of community nonprofit organizations across 36 states.
The bulk of contributions from this sector are directed at three key initiatives that affect education, job growth and economic opportunities, and health and social services, a report from McKinsey & Company confirms.
Close to 34 percent of annual contributions from the insurance sector are directed toward educational initiatives, and if you think about it, it’s money well spent. Advancements in education lead to better quality of life and decision making, all factors that help us live longer and make more significant contributions to our world.
Community and Economic Development
The I.I.I. notes that insurance contributions totaled around 18 percent for community and economic development, ranking this sector as the number three for charitable contributions.
Insurers understand how significant of an impact community development can have on economic development, and so they strive to take part in community improvement plans knowing what quality of life means to companies that are either considering establishing a new business or expanding into a new market.
The need for jobs will continue to grow as the US economy struggles to find its way. Employers have options for where they choose to locate their businesses. They want their employees to have access to parks and lakes and bike trails and all the little things that make a community feel like home.
The insurance industry considers community partnerships a cornerstone of good business. After all, that’s where their customers are!
Health and Social Services
Twenty percent of annual contributions are categorized as “health and social services,” according to the I.I.I. This translates to just under $190 million per year using the above figures. The healthcare industry is a much larger industry than that, and it’s been under intense scrutiny over the last four years as President Obama and House/Senate Democrats passed probably the largest legislation since the Great Depression. Big changes are expected in the next few years through the Affordable Care Act (ACA), and regardless of what the law means for costs, insurance companies plan to continue keeping the sector as a major priority.
Other areas where insurers give back include the environment, culture and arts, disaster relief, and civic and public affairs. But each of these areas take root in the quality of a population’s education, economy, and healthcare. Not only are these sectors tied to the products insurance companies offer, but they are also the building blocks of any successful society.