UK named world’s second largest insurance market
Research published today by International Financial Services London reveals that 2007 was the year in which the UK became the world’s second-biggest insurance market.
According to IFSL, which promotes the UK-based financial services industry throughout the world, Britain overtook Japan, having achieved 11% of global premium income, to sit behind world leader, the US.
The report attributes the shift to a combination of factors: when compared to Japan in 2007, the UK experienced increased growth in new long-term insurance; better performing equity markets and a faster growing economy.
As a result, overall premium income of the UK insurance industry increased by 20% to £263 billion.
An increase in occupational pensions premiums and (to a lesser extent) an increase in life insurance premiums played a significant part in achieving the rise.
The IFSL believes the impact of the credit crisis on the UK insurance market has so far been limited, with new long-term premium income for the first three quarters of 2008 down 11% on the same period in 2007.
The organisation estimates that the insurance sector accounts for 1% of UK Gross Domestic Product, excluding brokers and other auxiliary professions.
It estimates that the industry employs over 325,000 people and that companies’ funds under management totalled £1,600 billion in 2007 or almost double that of any other European country.
Category: Insurance News
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