6-digit U.S. detail
525190
Other Insurance Funds
Description
This industry comprises legal entities (i.e., funds (except pension, and health- and welfare-related employee benefit funds)) organized to provide insurance exclusively for the sponsor, firm, or its employees or members. Self-insurance funds (except employee benefit funds) and workers' compensation insurance funds are included in this industry.
Hierarchy
| Code | Title | Description |
|---|---|---|
| 52 | Finance and Insurance 2-digit sector | The Sector as a Whole The Finance and Insurance sector comprises establishments primarily engaged in financial transactions (transactions involving the creation, liquidation, or change in ownership of financial assets) and/or in facilitating financial transactions. Three principal types of activities are identified: 1. 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. This activity is known as financial intermediation. 2. Pooling of risk by underwriting insurance 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. 3. Providing specialized services facilitating or supporting financial intermediation, insurance, and employee benefit programs. In addition, monetary authorities charged with monetary control are included in this sector. The subsectors, industry groups, and industries within the Finance and Insurance sector are defined on the basis of their unique production processes. As with all industries, the production processes are distinguished by their use of specialized human resources and specialized physical capital. In addition, the way in which these establishments acquire and allocate financial capital, their source of funds, and the use of those funds provides a third basis for distinguishing characteristics of the production process. For instance, the production process in raising funds through deposit-taking is different from the process of raising funds in bond or money markets. The process of making loans to individuals also requires different production processes than does the creation of investment pools or the underwriting of securities. Most of the Finance and Insurance subsectors contain one or more industry groups of (1) intermediaries with similar patterns of raising and using funds and (2) establishments engaged in activities that facilitate, or are otherwise related to, that type of financial or insurance intermediation. Industries within this sector are defined in terms of activities for which a production process can be specified, and many of these activities are not exclusive to a particular type of financial institution. To deal with the varied activities taking place within existing financial institutions, the approach is to split these institutions into components performing specialized services. This requires defining the units engaged in providing those services and developing procedures that allow for their delineation. These units are the equivalents for finance and insurance of the establishments defined for other industries. The output of many financial services, as well as the inputs and the processes by which they are combined, cannot be observed at a single location and can only be defined at a higher level of the organizational structure of the enterprise. Additionally, a number of independent activities that represent separate and distinct production processes may take place at a single location belonging to a multilocation financial firm. Activities are more likely to be homogeneous with respect to production characteristics than are locations, at least in financial services. The classification defines activities broadly enough that it can be used both by those classifying by location and by those employing a more top-down approach to the delineation of the establishment. Establishments engaged in activities that facilitate, or are otherwise related to, the various types of intermediation are included in multiple subsectors, rather than in a separate subsector dedicated to services alone, because these services are performed by intermediaries, as well as by specialist establishments, and the extent to which the activity of the intermediaries can be separately identified is not clear. Financial industries are extensive users of electronic means for facilitating the verification of financial balances, authorizing transactions, transferring funds to and from transactors' accounts, notifying banks (or credit card issuers) of the individual transactions, and providing daily summaries. Since these transaction processing activities are integral to the production of finance and insurance services, establishments that principally provide a financial transaction processing service are classified in this sector, rather than in the data processing industry in the Information sector. Legal entities that hold portfolios of assets on behalf of others are significant and data on them are required for a variety of purposes. Thus, for NAICS, these funds, trusts, and other financial vehicles are the fifth subsector of the Finance and Insurance sector. These entities earn interest, dividends, and other property income, but have little or no employment and no revenue from the sale of services. Separate establishments and employees devoted to the management of funds are classified in Industry Group 5239, Other Financial Investment Activities. |
| 525 | Funds, Trusts, and Other Financial Vehicles 3-digit subsector | Industries in the Funds, Trusts, and Other Financial Vehicles subsector group legal entities (i.e., funds, plans, and/or programs) organized to pool securities or other assets on behalf of shareholders or beneficiaries of employee benefit or other trust funds. The portfolios are customized to achieve specific investment characteristics, such as diversification, risk, rate of return, and price volatility. These entities earn interest, dividends, and other investment income, but have little or no employment and no revenue from the sale of services. Establishments with employees devoted to the management of funds are classified in Industry Group 5239, Other Financial Investment Activities. Establishments primarily engaged in holding the securities of (or other equity interests in) other firms are classified in Sector 55, Management of Companies and Enterprises. Equity real estate investment trusts (REITs) that are primarily engaged in leasing buildings, dwellings, or other real estate property to others are classified in Subsector 531, Real Estate. |
| 5251 | Insurance and Employee Benefit Funds 4-digit industry group | This industry group comprises legal entities (i.e., funds, plans, and/or programs) organized to provide insurance and employee benefits exclusively for the sponsor, firm, or its employees or members. |
| 52519 | Other Insurance Funds 5-digit NAICS industry | See industry description for 525190. |
| 525190 | Other Insurance Funds 6-digit U.S. detail | This industry comprises legal entities (i.e., funds (except pension, and health- and welfare-related employee benefit funds)) organized to provide insurance exclusively for the sponsor, firm, or its employees or members. Self-insurance funds (except employee benefit funds) and workers' compensation insurance funds are included in this industry. |
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Classification References
- 01Legal entities (i.e., funds, plans, and/or programs) organized to provide retirement income benefits exclusively for the sponsor's employees or members are classified in Industry 525110, Pension Funds;
- 02Legal entities (i.e., funds, plans, and/or programs) organized to provide health- and welfare-related employee benefits exclusively for the sponsor's employees or members are classified in Industry 525120, Health and Welfare Funds;
- 03Establishments primarily engaged in managing portfolios of insurance funds are classified in Industry 523940, Portfolio Management and Investment Advice;
- 04Establishments primarily engaged in providing pharmacy benefit management services and other third party claims administration of insurance and other employee benefit funds are classified in U.S. Industry 524292, Pharmacy Benefit Management and Other Third Party Administration of Insurance and Pension Funds; and
- 05Establishments primarily engaged in providing insurance on a fee or contract basis are classified in Industry Group 5241, Insurance Carriers.
Index Items
Compensation, workers, insurance funds
Funds, self-insurance (except employee benefit funds)
Self-insurance funds (except employee benefit funds)
Workers' compensation insurance funds
How Item Can Help
Analyzes historical claims and industry risk patterns to provide predictive insights that help fund managers allocate reserves more accurately and detect fraud early.
External Resources
Census.gov NAICS Detail
Official US Census Bureau definition and scope for NAICS 525190.
National Association of Insurance Commissioners
The primary U.S. government agency responsible for regulating insurance and banking operations.
Insurance Information Institute
An independent, non-partisan trade association providing resources for insurance professionals and consumers.
NAIC NAICS Code 525190 Page
The official NAIC resource specifically detailing the definitions and regulation of Other Insurance Funds under NAICS 525190.
