52421 - Insurance Agencies and Brokerages
When navigating the complex world of finance and insurance, understanding industry classifications is crucial. NAICS code 52421, titled Insurance Agencies and Brokerages, plays a vital role in categorizing businesses that act as intermediaries in the insurance sector. This classification guides government contracting, market research, and business development within the insurance marketplace.
What is NAICS Code 52421?
NAICS code 52421 comprises establishments primarily engaged in acting as agents or brokers in selling annuities and insurance policies. These policies include various types such as life, health, property, and casualty insurance. Essentially, businesses under this NAICS code facilitate the sale of insurance products between insurers and customers, ensuring clients receive appropriate coverage through expert guidance.
Sector Overview: Finance and Insurance
This NAICS code falls under the broad Finance and Insurance sector, which encompasses a wide range of financial services. Specifically, businesses in NAICS 52421 focus on connecting clients with insurance products by:
- Acting as intermediaries between insurers and customers
- Selling annuities and a variety of insurance policies
- Advising clients on suitable insurance coverage options
Typical Business Activities Under NAICS 52421
Common business types and activities classified under this NAICS code include:
- Insurance Agencies that represent one or multiple insurance companies to sell policies directly to consumers
- Insurance Brokerages that represent customers to find the best insurance products across different companies
- Annuity Sales Agents specializing in annuities, helping clients invest in long-term financial products related to retirement
Size Standards for NAICS 52421
Understanding size standards is critical for businesses seeking government contracts or programs specifically targeting small businesses. For NAICS code 52421:
| Size Standard Metric | Threshold |
|---|---|
| Average Annual Receipts (3 years) | $16.5 million or less* |
*Note: Size standards are subject to periodic updates by the Small Business Administration (SBA). It’s recommended to verify the current thresholds for eligibility.
Examples of Businesses Classified Under NAICS 52421
- A life insurance agency representing multiple carriers to provide customized life insurance products
- A brokerage firm specializing in health insurance for small businesses and individuals
- Independent annuity sales agents helping clients select retirement income products
NAICS Code 52421: Code Details Table
| Parameter | Details |
|---|---|
| NAICS Code | 52421 |
| Title | Insurance Agencies and Brokerages |
| Sector | Finance and Insurance |
| Description | Establishments acting as agents/brokers selling annuities and insurance policies (life, health, property, casualty) |
| Typical Business Types | Insurance agencies, insurance brokerages, annuity sales agents |
| Size Standard | $16.5 million average annual receipts (SBA-defined) |
Frequently Asked Questions (FAQs)
What does NAICS code 52421 cover?
NAICS code 52421 covers businesses engaged in acting as agents or brokers who sell insurance policies and annuities, bridging insurers and customers.
Which sector does this NAICS code belong to?
It falls under the Finance and Insurance sector.
What types of businesses fall under NAICS 52421?
Typical businesses include insurance agencies, insurance brokerages, and annuity sales agents.
What is the SBA size standard for eligibility under NAICS 52421?
The size standard is generally $16.5 million or less in average annual receipts over three years to qualify as a small business.
Why is NAICS 52421 important for government contracting?
Accurately identifying this NAICS code helps businesses qualify for specific government contracts or assistance programs targeting insurance agencies and brokerages.
Understanding NAICS code 52421 is essential for professionals and businesses in the insurance brokerage and agency space. Whether you're seeking government contracts, performing market analysis, or simply looking to clarify your business classification, this code provides a clear framework for entities working as insurance agents and brokers. Keep your business aligned with the right NAICS code to leverage industry opportunities effectively.
