The financial and insurance sector generally comprises of companies engaged in financial transactions and/or facilitate financial transactions. What would these principally cover?
Well for starters they act as financial intermediaries. That means they will purchase things like assets, shares, etc. incurring liabilities in the process and sell it further down the chain. In essence, they act as middlemen who channel funds from lenders to borrowers.
Secondly, the companies will create a pool of insurance companies to reduce their risk of failing when a catastrophic incident like earthquakes, cyclones, etc. occur. They might collect fees, insurance premiums, annuity, etc. and build up their reserves to create a wealth pool. Consider it insurance to the Insurance companies!
Lastly and most importantly, they provide services like insurance, employee benefit programs and support another financial intermediation.
As per US Government Statistics, the majority of finance and insurance establishments are in the private sector nearing a total of 500,000 whereas the government establishments only amount up to a total of 1,000 odd companies! (Local, State and Federal combined)
On average, any full-time worker will get anything around 1,100$ weekly as per 2018 combined statistics which hasn’t risen much in the past few years.
The Finance and Insurance sector comes under the “Financial activities” Super-sector and is controlled by the Central Bank.
In current news, Health Insurance is so darn expensive that it has taken a 67% hike since10 years ago! This also means employers’ expenses have gone up!! And there is no good news when it comes to wage increase either. There have only been a 26% increase as compared to the colossal 67% hike!