Finance & Insurance

The Finance and Insurance sector comprises firms that primarily facilitate or engage in financial transactions involving the creation, liquidation and sale of financial assets. Sector operators include commercial banks, investment banks, private equity firms, insurance companies and hedge funds.

Finance & Insurance

Output ($b)1 IVA ($b)2 Market Size3 Employment (m)* Wages & Benefits ($m)* EBITDA ($m)4
$340.7 $133.1 3/18 1,226 $43.8 $92.7

Sector Overview

The Finance and Insurance sector encompasses establishments that primarily engage in financial transactions, that is, transactions involving the creation, liquidation and change in ownership of financial assets or in facilitating financial transactions. Financial industries are extensive users of electronic means for facilitating the verification of financial balances, authorizing transactions, transferring funds, notifying banks (or credit card issuers) of the individual transactions and providing daily summaries. This sector’s three principal activities are:

  • Financial Intermediation – Raising funds by taking deposits and/or issuing securities and, in the process, incurring liabilities. Establishments engaged in this activity use raised funds to acquire financial assets by making loans and/or purchasing securities. Putting themselves at risk, they channel funds from lenders to borrowers and transform or repackage the funds with respect to maturity, scale and risk.
  • Insurance – Pooling of risk by underwriting insurance policies and annuities. Establishments engaged in this activity collect fees, insurance premiums or annuity considerations; build up reserves; invest those reserves and make contractual payments. Fees are based on the expected incidence of the insured risk and the expected return on investment.
  • Support Services – This segment includes establishments that provide specialized services that facilitate or supporting financial intermediation, insurance and employee benefit programs.

LARG Industry Reports

Los Angeles Research Group provides 30 industry reports detailing the Finance and Insurance sector. Each report contains detailed information on output, employment, enterprises, establishments, assets, liabilities and profitability. LARG’s industry reports also provide in-depth information on market share concentrations, business structure (e.g., corporations, sole-proprietorships, partnerships), key economic indicators, supply chain data, debt ratios and new entrant trends, including survivor rates (i.e., percentage of new businesses that last longer than five years).

In addition to LARG’s standardized report information, LARG’s industry reports in the Finance and Insurance sector also provide specialized statistics, including detailed information on loans, credit cards, outsourcing and brokerage. For more information on a particular industry, please click on the appropriate industry below.

Sector Growth5

Sector Cost Structure*

 
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