The phrase insurance sector can be used to describe the entire insurance provider arena or an individual product-based sector of the insurance market. The insurance market is where insurance providers and buyers come together.
Broad Insurance Sector
The use of the phrase insurance sector to describe the entire insurance industry helps separate insurance as an industry from others. A discussion of the insurance sector in this instance would be centered on the overall nature and performance of the insurance market.
Product Type Insurance Sector
Each product category in the broad insurance market can also be described as an insurance sector. For instance the life insurance sector would describe the marketplace where customers buy life insurance products from insurance providers.
The broad insurance sector provides risk management options for businesses and individuals who are willing to pay monthly premiums to offset large-scale risk from loss or damage. A competitive insurance sector causes premium prices to remain affordable and makes adequate benefits and coverages available.