Finance & Insurance Sector Industry Profile

Companies in this industry engage in financial transactions and create, liquidate, purchase, and sell financial assets such as securities, bonds, and insurance. Major finance and insurance companies include AIG, Bank of America, Citigroup, Fidelity, Goldman Sachs, JPMorgan Chase, MetLife, and Wells Fargo (all based in the US), as well as Allianz (Germany) AXA and BNP Paribas (both based in France), and Industrial and Commercial Bank of China (China).

Major global financial hubs include New York, London, Hong Kong, Shanghai, Los Angeles, and Singapore, according to the 2022 Global Financial Centres Index by Z/Yen. Top financial centers in Asia Pacific include Hong Kong, Shanghai, Singapore, Beijing, and Tokyo.

The US finance and insurance sector consists of about 475,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $4.5 trillion.

COMPETITIVE LANDSCAPE

Demand is driven by business activity, returns on investments, and consumer income. The profitability of individual companies depends on marketing, efficient operations, and investment expertise. Large companies often have advantages in access to cheaper capital, participation in large-scale transactions, and name recognition. Small companies can compete effectively through customer service, knowledge of the local market, innovation, and specialization. The sector in the US is fragmented: the largest 50 companies account for nearly 50% of sales.

The finance and insurance sector is undergoing rapid and significant change driven by advances in digital technology, connectivity, and competition from startups and other ...