NAICS 52

Finance and Insurance in California: 2026 Market Risk Report

Entry risk 46.9 (Elevated), ranked #12 of 51 states. 52,125 establishments, 495,273 jobs.

Entry Risk Assessment

Entry Risk Score 46.9
Low 0-30
Moderate 30-42
Elevated 42-55
High 55+
Elevated

ⓘ Lower is better. Relative to national finance and insurance average.

California's finance and insurance sector shows high establishment density (top 5 nationally) paired with firm retention in the bottom 5. This combination indicates elevated competitive pressure on new market entrants.

5-Year Firm Retention
3.9%
Percentile within industry
Rank #50 of 51 states
Growth Momentum
47.6
Scale of 0-100
Rank #14 of 51 states
Establishment Density
5.9
vs. national average
Rank #2 of 51 states
Market Volatility
4.9
Lower is more stable
Wage Pressure Index
24.8
Labor cost pressure

52,125 Establishments in California

52,125
Establishments
-2.6% YoY
495,273
Total Employment
-2.4% YoY
$175,077
Average Annual Wage
+1.4% YoY

California vs National Finance and Insurance Average

How California's finance and insurance market compares to the national average across all 51 states.

Metric CA National Difference
Entry Risk Score 46.9 51.9 -5.0
5-Year Retention 3.9% 51.0% -47.1
Growth Momentum 47.6 34.4 +13.2
Market Volatility 4.9 9.6 -4.7
Establishment Density 5.9 42.5 -36.6
Wage Pressure 24.8 66.8 -42.0

Green = favorable vs national average. Red = less favorable. Metrics are relative within finance and insurance only.

California Ranks #12 of 51 for Finance and Insurance

California ranks #12 out of 51 states for finance and insurance market entry conditions.

Finance and Insurance Entry Risk by State

Rank State Risk Score Classification
#1 Hawaii 37.0 moderate
#2 West Virginia 39.8 moderate
#3 Kentucky 40.0 moderate
#4 Rhode Island 41.9 moderate
#5 Maine 42.0 elevated
#12 California You 46.9 elevated
Entry Risk by State Alaska — 49.7 · #21 Alabama — 48.4 · #18 Arkansas — 44.7 · #7 Arizona — 52.6 · #29 California — 46.9 · #12 Colorado — 67.3 · #50 Connecticut — 73.7 · #51 District of Columbia — 47.9 · #13 Delaware — 57.7 · #44 Florida — 61.9 · #46 Georgia — 56.4 · #40 Hawaii — 37.0 · #1 Iowa — 54.3 · #35 Idaho — 56.2 · #39 Illinois — 46.2 · #10 Indiana — 45.4 · #9 Kansas — 57.0 · #42 Kentucky — 40.0 · #3 Louisiana — 42.0 · #6 Massachusetts — 48.2 · #15 Maryland — 52.6 · #30 Maine — 42.0 · #5 Michigan — 49.8 · #23 Minnesota — 46.6 · #11 Missouri — 57.7 · #43 Mississippi — 54.5 · #36 Montana — 59.0 · #45 North Carolina — 48.4 · #17 North Dakota — 52.1 · #28 Nebraska — 49.4 · #20 New Hampshire — 49.8 · #22 New Jersey — 53.2 · #32 New Mexico — 53.1 · #31 Nevada — 55.6 · #38 New York — 65.4 · #49 Ohio — 48.2 · #14 Oklahoma — 64.9 · #48 Oregon — 56.7 · #41 Pennsylvania — 48.8 · #19 Rhode Island — 41.9 · #4 South Carolina — 48.4 · #16 South Dakota — 50.1 · #24 Tennessee — 53.4 · #33 Texas — 50.4 · #25 Utah — 51.9 · #27 Virginia — 50.8 · #26 Vermont — 53.6 · #34 Washington — 55.5 · #37 Wisconsin — 45.3 · #8 West Virginia — 39.8 · #2 Wyoming — 62.0 · #47
Low Moderate Elevated High

Tap a state to view details

About Entry Risk Score: A weighted composite of firm retention, growth momentum, market volatility, establishment density, and wage pressure. Lower scores indicate more favorable conditions. Read full methodology →

Data Sources

Data period: 2024. Last updated: February 2026. Next refresh expected: Q2 2026 (BLS QCEW update).

Compare to Another State

How does California stack up against other states for finance and insurance?

Select a state above to see the comparison

Finance and Insurance in Neighboring States

How California's finance and insurance market compares to bordering states.

Arizona 52.6 #29/51 Nevada 55.6 #38/51 Oregon 56.7 #41/51

Other Industries in California

Construction → Healthcare and Social Assistance → Retail Trade → Accommodation and Food Services → Professional, Scientific, and Technical Services → Real Estate and Rental and Leasing → Administrative and Support Services → Information → Other Services →