NAICS 525190 Quarterly Industry Report
Other Insurance Funds
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 525190Sector: Finance and Insurance (52)Updated: Q1 2026
About This Report
This industry profile for Other Insurance Funds (NAICS 525190) draws on data from the U.S. Census Bureau NAICS classification system[5] and SBA size standards documentation[4]. Published by Fair Market Value and updated quarterly, it provides insurance professionals, risk managers, and business owners with classification guidance, market context, and regulatory reference points. Additional data is drawn from Bureau of Labor Statistics[6].. The editorial analysis reflects the independent assessment of FairMarketValue.com's research team, with all quantitative claims sourced to publicly verifiable databases.
Industry Definition & Overview
Other Insurance Funds (NAICS 525190) encompasses legal entities organized to provide insurance exclusively for the sponsor, firm, or its employees or members. This classification covers self-insurance funds (except employee benefit funds) and workers compensation insurance funds. Self-insured group health plans function differently than fully-insured arrangements; instead of paying fixed premiums to an insurance carrier, self-insured employers assume financial risk and pay claims as incurred through their plan assets. Per Department of Labor data[3], large employers increasingly favor self-insurance for its cost control benefits and regulatory flexibility under ERISA preemption.
Workers compensation insurance operates through state funds in monopolistic states like North Dakota, Ohio, Washington, and Wyoming, where employers must purchase coverage exclusively through state funds. In competitive states, 19 states offer both state funds and private insurance options. Captive insurance companies represent another major segment, with Vermont leading as the top U.S. domicile for captives, hosting over 600 licensed captive insurers. Risk retention groups and purchasing groups, authorized under federal law since the Liability Risk Retention Act of 1986, allow businesses in similar industries to pool their liability exposures. These pooling arrangements reduce per-member costs while spreading risk across a broader base. The SBA classifies this industry[4] with a size standard of $40.0 million in annual receipts.
What's Included in This Industry
- Self-insured health plans and group health plans
- Workers compensation insurance state funds (monopolistic and competitive)
- Captive insurance companies organized for self-insurance purposes
- Group captive insurers for members' risks and coverages
- Reinsurance pools and risk pooling arrangements
- Insurance reserve financing vehicles
- Multi-employer workers compensation funds
- Industry-specific self-insurance arrangements
- Risk retention group insurance mechanisms
- Municipal and governmental self-insurance pools
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Finance and Insurance | 52 |
| Subsector | Funds, Trusts, and Other Financial Vehicles | 525 |
| Industry Group | Insurance and Employee Benefit Funds | 5251 |
| NAICS Industry | Other Insurance Funds | 52519 |
| National Industry | Other Insurance Funds | 525190 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 525110 | Pension Funds | Pension Funds provide retirement income benefits exclusively for sponsor employees or members, organized as separate legal entities distinct from the insurance-focused self-funding arrangements in 525190 |
| 525120 | Health and Welfare Funds | Health and Welfare Funds provide health, medical, and welfare benefits to sponsor employees, classified separately from the broader self-insurance and workers compensation funds in 525190 |
| 524130 | Reinsurance Carriers | Reinsurance Carriers assume risk associated with existing insurance policies, often partnered with captive insurers and risk pooling arrangements classified under 525190 |
| 524210 | Insurance Agencies and Brokerages | Insurance Agencies and Brokerages manage insurance placements and claims administration as service providers, distinct from the self-insured fund entities classified under 525190 |
| 525910 | Open-End Investment Funds | Open-End Investment Funds pool investor assets in securities with continuous share offerings, a different financial vehicle structure than the insurance-focused entities in 525190 |
| 525920 | Trusts, Estates, and Agency Accounts | Trusts, Estates, and Agency Accounts administer assets under trust agreements for beneficiaries, structurally different from the self-insurance arrangements in 525190 |
SBA Lending Summary
8
Total SBA Loans
$3.0M
Total Loan Volume
$380K
Average Loan Size
10 yrs
Average Loan Term
10.00%
Average Interest Rate
160
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[2]
Key Insight: The Small Business Administration classifies Other Insurance Funds (NAICS 525190) with a size standard of $40.0 million in annual receipts (SBA Size Standards[4]). This standard applies to establishments primarily engaged in self-insurance and workers compensation fund operations. Businesses operating as self-insured entities or state insurance funds should reference these guidelines when determining their classification for federal contracting and loan purposes. SBA provides size standards tools[7] to help businesses verify their classification status. Eligible businesses can access SBA 7(a) loans[8] for working capital, equipment, and acquisition financing, while 504 loans[9] support major fixed-asset purchases including real estate and heavy machinery.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Community Choice CU | 8 | $3.0M | $380K |
Frequently Asked Questions
Common questions about this industry.
What types of businesses are classified under NAICS 525190?
NAICS 525190 includes self-insurance funds (except employee benefit funds) and workers compensation insurance funds organized to provide insurance exclusively for the sponsor firm or its employees. Examples include self-insured health plans where employers assume financial risk for claims, captive insurance companies, group captive insurers, risk retention groups, and state workers compensation funds operating in both monopolistic and competitive systems.
How is the other insurance funds industry structured?
The industry spans a wide range of organizational types, from small single-employer captive insurers to large state-run workers compensation funds. Monopolistic state funds in North Dakota, Ohio, Washington, and Wyoming operate as sole providers of workers compensation coverage. Competitive state funds coexist with private carriers in 19 states. Per Department of Labor reports[3], self-insured health plans cover a growing share of the employer-sponsored insurance market. Captive insurers number over 7,000 worldwide, with Vermont, Utah, and North Carolina serving as top U.S. domiciles.
What is the SBA size standard for NAICS 525190?
The SBA size standard for Other Insurance Funds is $40.0 million in average annual receipts (SBA Size Standards[4]). This threshold determines eligibility for federal small business contracting programs, SBA loan programs, and other government assistance. Entities exceeding this revenue limit are classified as large businesses for federal purposes.
What NAICS codes are related to other insurance funds?
Closely related codes include 525110 (Pension Funds), 525120 (Health and Welfare Funds), 524130 (Reinsurance Carriers), and 524210 (Insurance Agencies and Brokerages). Each serves a different function within the broader insurance and financial services ecosystem. Pension and welfare funds focus on employee benefits, while reinsurance carriers and agencies provide supporting services to the insurance market.
Which industries work most closely with other insurance funds?
Direct insurance carriers (524113, 524114, 524126) compete with and complement self-insured arrangements. Commercial banks (522110) provide cash management and credit facilities for fund operations. Per the SBA contracting guide[10], management consulting firms help organizations design self-insurance programs and captive structures. Actuarial firms and third-party claims administrators provide essential operational support under separate NAICS classifications.
What activities are included in NAICS 525190?
Activities include operating self-insured health plans, managing workers compensation state insurance funds, running captive insurance companies, administering risk retention groups, managing reinsurance pools, and operating municipal self-insurance pools. These entities assume financial risk for specified insurable events rather than transferring that risk to third-party carriers.
Can you get an SBA loan for this type of business?
SBA loans are available for qualifying small businesses in the insurance fund sector, provided they meet the $40.0 million size standard (SBA Size Standards[4]) and other eligibility criteria. However, many entities classified under 525190 are organized as nonprofit or governmental funds rather than for-profit businesses, which may affect eligibility. For-profit captive insurers and risk retention groups that meet size requirements can access SBA 7(a) and 504 loan programs[11] for startup capital or expansion.
Which states have the highest concentration of other insurance funds?
Vermont leads in captive insurance company domiciles, hosting over 600 captive insurers due to favorable regulatory frameworks established in the 1980s. Other top captive domiciles include Utah, North Carolina, Hawaii, and Delaware. For workers compensation state funds, the largest operations are in Ohio, Washington, and California. Self-insured health plans concentrate in states with large employer bases: California, Texas, New York, and Illinois.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [3]Department of Labor data dol.gov
- [4]SBA classifies this industry sba.gov
- [5]U.S. Census Bureau NAICS classification system census.gov
- [6]Bureau of Labor Statistics bls.gov
- [7]size standards tools sba.gov
- [8]SBA 7(a) loans sba.gov
- [9]504 loans sba.gov
- [10]SBA contracting guide sba.gov
- [11]SBA 7(a) and 504 loan programs sba.gov
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