While property and casualty insurance companies (P&Cs) are attracted to the tax-exemption, life insurance companies are focused heavily on taxable munis given their internal tax structure with lower taxable income relative to P&Cs. Much of the muni exposure reduction from insurance companies is due to a shift into higher-yielding investments. The fed funds data show a 16% decline in P&C muni holdings from 2022 through Q3 2025. During the first three quarters of 2025, muni flows into P&Cs had been marginally positive. From 2022 through Q3 2025, life insurance companies revealed an 11% drop in holdings.