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SECTION K – FINANCIAL AND INSURANCE ACTIVITIES
This section includes financial service activities, including insurance, reinsurance, and pension fund activities, and financial service support activities.
This section also includes the activity of holding assets, such as holding company activities, trust activities, fund, and other financial instruments.
Financial service activities, except insurance and pension funding
This division includes the activities of guaranteeing and redistributing funds, excluding those for compulsory social security purposes or insurance or pension financing.
Note: National institutional provisions play an important role in determining the classification within this division.
Monetary Mediation
This group includes:
– securing of funds in the form of transferable deposits, e.g. funds that are fixed in monetary terms and secured on a daily basis, in particular by the central bank, secured
from non-financial sources
64.11 Central bank activity
This class includes:
- issuance and management of the national currency
- monitoring and control of the money supply
- taking of deposits used for compensation between financial institutions
- supervision of banking operations
- maintaining the country's international reserves
- acting as the government's banker
Central bank activities may vary for different institutional reasons.
64.19 Other financial intermediation
This class includes taking deposits and/or closing, replacing deposits, and extending credit or lending funds. Loan guarantees can take various forms such as loans, mortgages, credit cards, etc. These activities are generally carried out by monetary institutions other than central banks, such as:
- bankat
- savings banks
- credit union financial This class also includes:
- Postal financial transfers and postal savings bank activity
- guarantee loans for home purchases from specialized deposit institutions
- Paid activities This class does not include:
- guarantee loans for the purchase of houses from specialized non-depository institutions, see 64.92
- For the treatment of credit card transactions and settlement activities, see 66.19
64.2 Holding company activities
64.20 Holding Company Activities
This class includes the activities of holding companies, e.g., entities that hold the assets (ownership, controlling interest) of a group of subsidiary corporations and whose main activity is to own the group. Holding companies in this class do not perform any other services for the businesses from which the capital is formed (e.g., they do not administer or manage other entities).
This class does not include:
– active management of companies and enterprises, strategic planning and company decision-making, see 70.10
64.3 Trusts, funds, and similar financial entities
64.30 Trusts, funds, and similar financial entities
This class includes legal entities organized for the collection of insurance or other financial assets, without management, on behalf of shareholders or beneficiaries. Shares are tailored to achieve specific investment characteristics, such as investment expansion, risk, rate of return, and price volatility.
These units gain interest, dividends, and other property income, but have few or no employees and no income from the sale of services.
This class includes:
- fixed investment funds
- variable investment funds
- investment unit fund
- Trusts, estates, or property account agencies, administered in the interest of beneficiaries based on the terms of a trust deed, will, or contract.
This class does not include:
- funds and trusts that derive income from the sale of goods or services, see NACE class according to their main activity
- holding company activities, see 64.20
- pension financing, see 65.30
- fund management, see 66.30
64.9 Other financial intermediation
This group includes financial intermediation separate from that carried out by monetary institutions. This group does not include:
– pension security and financing see section 65
64.91 Leasing (Financial leasing)
This class includes:
- leasing (financial lease) where the terms approximately cover the expected useful life of the assets and the lessee primarily enjoys all the benefits of use and assumes the risks associated with having the right of ownership. Ownership of the asset may or may not be transferred.
These rents cover all or approximately all costs including interest.
This class does not include:
- for operational lease, see section 77, by type of leased good.
64.92 Other credit guarantee activities
This class includes:
This class includes other financial services primarily concerned with obtaining loans from institutions not involved in monetary intermediation, where credit collateral can be provided in various forms such as loans, mortgages, credit cards, etc., ensuring the following types of services:
- consumer credit guarantee.
- international trade finance
- Securing long-term financing for industry from industrial banks Lending money outside the banking system Providing home purchase loans from specialized non-depository institutions
- Pawn shop and pawnbroker
This class does not include:
- guarantee of loans for home purchases from specialized institutions that also take deposits, see 64.19
- Rental, see section 77, by type of goods rented
64.99 Other financial intermediation, except insurance and pension funds, n.e.c.
This class includes:
- financial service activities primarily related to the distribution of funds rather than the provision of loans:
- factoring activities
- Exchanges, opportunities, and other defense agreements
- investment activities for one's own account, e.g., venture capital companies, investment companies, etc. This class does not include:
- leasing (financial lease), see 64.91
- insurance on behalf of others, see 66.12
- trade, leasing, and lending, real estate leasing, see division 68
- invoice consolidation without debt purchase, see 82.91
- grant awards from member organizations, see 94.99
65 Insurance, reinsurance, and financing of pension funds, excluding compulsory social insurance
This class includes the signing of annual pensions, insurance policies, and the expenditure of premiums to build a collection of financial assets for future claims. Direct and reinsurance insurance provisions are included.
Insurance
This group includes life insurance with or without visible savings elements and other life insurances.
65.11 Life insurance
This class includes:
- annual pension subscription
- life insurance policies
- disability income insurance policies
- accidental death and cancellation of insurance policies (with or without apparent cost-saving elements)
65.12 Non-life insurance
This class includes:
- insurance services other than life insurance:
- Accident and fire insurance
- health insurance
- Travel insurance
- property insurance
- Motor vehicle insurance, fleet, aviation, and transport insurance
- insurance for loss of money and debts
65.2 Reassurance
65.20 Reassurance
This class includes activities of assuming all or part of the risk associated with existing insurance policies, initially underwritten by other insurance agencies.
65.3 Pension Financing
65.30 Pension Financing
This class includes legal entities (e.g., funds, plans, and/or programs) organized to provide pension benefit arrangements primarily for employees or members. This includes defined benefit pension plans, as well as individual arrangements where benefits are simply determined by member contributions.
This class includes:
- Employee Benefit Planning
- pension funds and planning
- Retirement plan
This class does not include:
- management of pension funds, see 66.30
- Compulsory social security schemes, see 84.30
66 Other financial activities
This division includes providing services that are included in or closely related to financial services activities, but not undertaking financial services. The first breakdown of this division is by type of financial transaction or financing provided.
Auxiliary financial intermediation activities, except insurance and pension funding
This group comprises the physical or electronic provision of markets for the purpose of facilitating the trading of funds, fund options, securities, or commodity contracts.
66.11 Financial Market Administration
This class includes the operation and supervision of financial markets, in addition to those carried out by public authorities, such as:
- barter agreements
- futures commodity contracts
- insurance exchange
- exchange of funds
- barter or fund exchange options
66.12 Insurance and commodity brokerage activities
This class includes:
- activity in financial markets on behalf of others (e.g., stockbrokers) and related activities
- insurance broker
- commodity contract brokers
- exchange office activities, etc.
This class does not include:
- acting on markets for its own account, see 64.99
- portfolio management, based on quotas or contracts, see 66.30
66.19 Auxiliary financial intermediation activities, except insurance and pension funding n.e.c.
This class includes auxiliary financial intermediation activities not classified elsewhere, such as:
- the processing of financial transactions and settlement of activity, including credit card transactions
- investment consulting services
- Mortgage broker and commissioner activities
This class also includes:
- Administration, trust services, and paid or contract custody services
This class does not include:
- activities of insurance agents and brokers, see 66.22
- fund management, see 66.30
66.2 Ancillary insurance activities and pension funding
This group includes acting as an agent (e.g., a broker) in annual sales of insurance policies or providing other employee benefits and pension fund insurance, such as claims payments or third-party administration.
66.21 Risk and damage assessment
This class includes providing insurance administrative services such as insurance claims assessment and settlement.
This includes:
- claims assessment
- resolution of claims
- risk assessment
- Risk and damage assessment
- Loss mitigation
- conflict resolution arising from insurance This class does not include:
- real estate appraisal, see 68.3
- for other purposes, see 74.90
- investigative activities, see 80.30
66.22 Insurance Agents and Brokers
This class includes:
– the activity of agents and brokers (insurance intermediaries) in selling, negotiating or collecting applications, for annual insurance pensions, and reinsurance policies.
66.29 Other insurance and pension funding activities
This class includes:
- activities involved in or closely related to insurance and pension financing (excluding financial intermediation, dispute resolution, and insurance agent activity):
- compensation activity management
- Insurance actuarial services
This class does not include:
- maritime rescue activities, see 52.22
66.3 Fund Management
66.30 Fund Management
This class includes paid or contracted fund and portfolio management activities for individuals, businesses (legal entities), or others, such as:
- mutual fund management
- management of other investment funds
- pension fund management
Source: Institute of Statistics (INSTAT)