Quezi

... and the UK insurance industry are expecting large claims (photo by John Dalrymple CC-BY)

The insurance industry makes important contributions to the UK’s economy, is a major employer, and source of overseas income. It is the second largest insurance industry in the world with its premium income at 11% of the world’s total. It is still some way behind the United States insurance industry which has 30 % of the premium income (2007 figures).

With 1,017 companies approved by the Financial Services Authority to carry out insurance work, although many are part of larger corporations, the industry employs over 309,000 people, almost one third of all financial services jobs.

The insurance industry is a substantial investor and controlled 15% of all investment on the London Stock Exchange in 2006, and before the recent difficulties in the stock market, in December 2007 had £1,599 billion invested in company shares and other assets. Of this, £121 billion was general insurance investments and £1,478 billion, long-term investments.

In 2007 the insurance industry paid out each day £211 million in pension and life insurance benefits, and £59 million in general insurance claims. The general insurance claims are made up of £17.1 million for motor claims (private cars), £12.4 million for householders’ insurance claims such as property damage, £5.9 million for business claims such as property damage, and £6.2 million for liability claims such as accidents on commercial premises or at work.

Motor insurance premiums represented the largest source of premiums on the general insurance business side at £10.5 billion with claims totalling £8.2 billion.

The Association of British Insurers ABI represents over 400 members of the insurance industry in the UK. The above statistics and further statistics can be found on the ABI website.