Finance and Insurance

Performance Highlights

As the economy recovers from the pandemic, per capita disposable income will increase, leading to more financial activity by consumers. Higher interest rates increase interest income for various businesses but also lower demand for industries that issue loans.

Geographic Distribution

California, Texas, Florida, and New York have the highest concentrations of businesses due to large populations and economic activity. New York City is home to major corporate headquarters and financial institutions.

Industry Outlook

Revenue is expected to grow at a CAGR of 1.5% from 2024 to 2029, reaching $6.5 trillion. Rising interest rates will have mixed effects on the sector, increasing interest income but potentially lowering loan demand. Technological advancements will necessitate significant investment in cybersecurity.

Competitive Forces

The industry is characterized by low concentration and high competition. Barriers to entry are moderate, with legal requirements and start-up costs being significant challenges. Successful businesses develop strong reputations, manage risk effectively, and adopt new technologies quickly.

Major Companies

Notable players include United Health Group Incorporated (4.8% market share), JP Morgan Chase & Co (1.7% market share), State Farm Mutual Automobile Insurance Co (1.4% market share), Bank Of America Corporation (1.2% market share), and Metlife, Inc. (0.6% market share).

Revenue

$6.0 trillion

Employees

8 million

Businesses

988,000

Wages

$913.1 billion

Economic and External Factors

Regulation is heavily influenced by the Great Depression and Great Recession to prevent financial crises. The Finance and Insurance sector receives direct assistance only during financial emergencies.