NAIC report explores infrastructure investment gap
The National Association of Insurance Commissioners (NAIC) has produced a report examining the potential of the insurance industry to help close the infrastructure investment gap.
The NAIC said its Center for Insurance Policy & Research (CIPR) and the Capital Markets Bureau recently released the report’s findings, Can Insurance Company Investments Help Close the Infrastructure Gap?
According to the NAIC, the nation has achieved a C- on the American Society of Civil Engineers (ASCE) 2021 report card on U.S. infrastructure – acknowledging while there has been progress, a gap remains between investments in infrastructure to support continued economic development and what is currently funded. .
In addition, the NAIC cited the ASCE estimate that the financing gap would reach $ 2.6 trillion over the next decade and cost the country $ 10 trillion in lost gross domestic product and more. three million jobs.
According to the NAIC report, the total exposure of the domestic insurance industry to economic infrastructure is $ 570.5 billion; a uniform definition of infrastructure could serve as a basis for discussions on financial investments in infrastructure within the insurance sector; and infrastructure investments have attractive qualities for insurers, potentially positioning them to make additional infrastructure investments under appropriate circumstances.
The NAIC said the primary mission of insurance regulators is to preserve the solvency of regulated insurance companies and protect policyholders.