Financials
This sector comprises establishments primarily engaged in financial transactions and/or in facilitating financial transactions. Three principal types of activities are identified as: raising funds by taking deposits, issuing securities and, in the process, incurring liabilities.
Revenue for the Finance and Insurance sector is expected to grow over the five years to 2027 as the economy continues to growth in the aftermath of the COVID-19 (coronavirus) pandemic.
In particular, revenue growth in the outlook period is expected to be attributable to the gradual process of interest rate increases. Furthermore, corporate profit and disposable income levels are expected to rise over the next five years, leaving consumers and businesses better situated to manage rising financing costs. Additionally, after insurance industries experienced premiums' prices rise over the five years to 2022, insurance companies are expected to continue to raise premium prices over the coming years, according to polling done by Fitch Ratings and Willis Towers Watson. Overall, sector revenue is expected to increase an annualized 1.4% to $6.1 trillion over the five years to 2027.
Industry Drivers
Development of alliances and distribution partnerships:
he need to build alliances with other entertainment and telecommunication providers is becoming increasingly important as the trend toward convergence transforms the industry.
Corporate Profit
Increasing corporate profit levels also benefits operators in this sector. As business operations become more profitable, operators are more likely to undertake new projects to expand their businesses that require the services of operators in this sector. This materializes in the form of increased demand for operators' services. In 2022, corporate profit is expected to increase.
Per Capita Disposable Income
As per capita disposable income levels rise, consumer long-term financial security increases. When this occurs, consumers are more likely to use a wide variety of services provided by operators in this sector. In 2022, per capita disposable income is expected to decrease, posing a potential threat for the sector.
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