FinStatGlobe Fintech Statistics 2026

What Insurance and Financial Services Trade Reveals About an Economy

By FinStatGlobe Research · Published

  • financial services
  • insurance
  • trade
  • wealth management
  • financial hubs

Introduction

When news breaks about a hedge fund billionaire like Ken Griffin donating millions to a political campaign, it puts a spotlight on the financial services industry. But what does it actually mean for a country to “export” financial services? How do insurance, asset management, and brokerage become something countries trade across borders?

The answer lies in a specific World Bank indicator: insurance and financial services as a share of service exports. This article explains what this metric measures, how to interpret it, and what it can — and cannot — tell you about an economy.

What the metric actually measures

The World Bank’s insurance and financial services trade indicator captures cross-border transactions in:

  • Insurance and reinsurance premiums — when a company in one country insures an asset in another country
  • Freight insurance — covering goods in transit across borders
  • Investment management fees — when a fund manager in one country manages assets for clients in another
  • Brokerage and advisory services — cross-border securities trading, M&A advisory, and wealth management fees
  • Pension and retirement fund services — cross-border pension management

These are expressed as a percentage of total service exports (Balance of Payments). This matters because it normalizes the data: a large economy like the United States will naturally have larger absolute financial services exports than a small one like Luxembourg, but Luxembourg’s share of total service exports tells us that financial services are the backbone of its export economy.

For the full ranking of which countries lead in financial services trade, see our article on who exports financial services and our explainer on how financial services underwrite the contract economy.

How to read a high share vs. a low share

A country’s score on this metric reflects its role in the global financial system:

High share (20%+ of service exports): The country is a specialized financial hub. Luxembourg (59.8%), the Cayman Islands (55.2%), the United Kingdom (24.2%), and Switzerland (20.4%) all have regulatory environments, tax frameworks, and professional expertise specifically tailored to attract cross-border financial business.

Moderate share (10–20%): The country has a significant financial sector but a diversified service export base. The United States (19.3%) falls here — its financial sector is the world’s largest in absolute terms, but its service exports also include technology, consultancy, and tourism.

Low share (below 5%): The country’s service exports are dominated by other sectors — tourism, transportation, IT services, or manufacturing-related services. China (1.7%) and India (3.1%) fall here despite having large stock markets and banking systems, because their service exports are dominated by IT, business process outsourcing, and other sectors.

For additional context on how stock markets relate to these metrics, see our article on how stock market capitalization works.

This indicator is often confused with several related but distinct measures:

Stock market capitalization measures the value of listed companies on a country’s stock exchanges — it’s a stock, not a flow. The United States has $68.9 trillion in stock market capitalization and a 19.3% share of financial services in exports. The Cayman Islands has only $644 million in market cap but an extraordinary 55.2% share of exports from financial services. One measures domestic market depth; the other measures cross-border service delivery.

Private sector credit measures how much banks lend to the domestic private sector. The United States has credit at 201.2% of GDP, reflecting deep domestic credit markets. Financial services trade, by contrast, measures what the sector earns from foreign clients.

Deposit and savings rates measure what households earn on deposits — a domestic retail banking metric. Financial services trade is almost entirely institutional and wholesale.

For more on these distinctions, see our articles on what private sector credit means and how formal savings work.

What the index cannot tell you

1. It does not measure domestic financial depth. A country could have a thriving banking sector serving its own population well but a low share of financial services in exports — because its banks focus on domestic lending, not cross-border fee income. India (3.1%) has a banking system with 89% account ownership but very low cross-border financial services trade.

2. It does not measure financial inclusion. Export-oriented financial services are almost entirely institutional — hedge funds, reinsurance, asset management. They tell you nothing about whether ordinary citizens can open a bank account or send money affordably. For that, use account ownership data or digital payment adoption statistics.

3. The data can be skewed by very small economies. Libya tops the global ranking at 94.1%, but this is because its total service exports are very small — dominated almost entirely by a single financial service line item. The ratio is high, but the absolute volume of financial services trade is minimal.

4. It does not distinguish between beneficial and extractive financial services. The metric treats all insurance and financial services exports equally — whether they’re reinsurance for disaster recovery, pension fund management for retirees, or complex structured finance products. The economic value and social utility vary enormously.

What 2026 looks like

The most recent data for most countries is 2024. The World Bank does not produce forward projections for this specific indicator.

Looking at structural trends, financial services trade is likely to evolve along these lines:

  • Fintech exports (digital payment infrastructure, cross-border payment platforms) are increasingly captured in financial services trade statistics, potentially boosting shares for countries with strong fintech sectors.
  • Geopolitical fragmentation may reshape financial services corridors, with traditional hubs like London and New York maintaining dominance while newer hubs (Singapore, Dubai) grow their shares.
  • Insurance demand related to climate risk is increasing, potentially boosting the financial services trade share for major reinsurance centers like the United Kingdom and Switzerland.

For related analysis, see our article on how geopolitical stress affects financial services trade and how private wealth moves across borders.

Sources & method

The data in this article comes from the World Bank World Development Indicators — specifically the indicator for insurance and financial services as a percentage of service exports (Balance of Payments). The latest available data is 2024 for most countries.

This indicator captures cross-border transactions in insurance, reinsurance, asset management, brokerage, and financial advisory services. It does not capture domestic financial activity, financial inclusion, or the absolute size of a country’s financial sector. For a complete picture of a country’s financial landscape, this metric should be read alongside data on account ownership, stock market capitalization, and private sector credit.

For more on how we compile and present this data, see our methodology page.