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Definition
Finance and Insurance
(NAICS 52)

The industries on this site are classified according to the North American Industry Classification System (NAICS) of 2002. Statistics Canada maintains this standard classification which has superseded the 1980 Standard Industrial Classification (SIC) previously used.

This section outlines NAICS Canada 2002 with respect to the Finance and Insurance sector. It defines the activities specifically excluded, as well as its position in the NAICS hierarchy.

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Definition of the Sector

This sector comprises establishments primarily engaged in financial transactions (that is, transactions involving the creation, liquidation, or change in ownership of financial assets) or in facilitating financial transactions. Included are:

• establishments that are primarily engaged in financial intermediation. They raise funds by taking deposits and/or issuing securities, and, in the process, incur liabilities, which they use 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.
• establishments that are primarily engaged in the pooling of risk by underwriting annuities and insurance. They 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.
• establishments that are primarily engaged in providing specialized services that facilitate or support financial intermediation, insurance and employee benefit programs.

In addition, establishments charged with monetary control - the monetary authorities - are included in this sector.

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Exclusions

No exclusions are specified in the 2002 NAICS Canada manual.

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Position in NAICS Hierarchy