Just How Much is the UK Insurance Industry Worth?
The insurance and long term savings industry in the UK is a hugely important part of our economic infrastructure and of that of the EU. Employing hundreds of thousands and pumping billions into our national economy every single year, it is an industry whose importance cannot be understated.
Indeed last year, the insurance industry contributed £11.8 billion just in taxes to HMRC and they pumped enough money into our economy to boost our GDP by £29 billion.
The industry employs 334,000 people across the UK throughout 903 different insurance companies. Every day, £68.5 million is paid out to claimants, with the most coming from the [car insurance] industry, responsible for paying out a huge £27 million each day.
According to the Association of British Employers, UK Insurance adds up to £29bn to the country’s GDP. This pays up to £12bn to its taxes and manages £1.9trn assets which equals to ¼ of UK’s total net worth with each household amounting to £71,000. And its effect to the employment sector is something that can’t just be ignored.
The next biggest pay out comes from the property insurance industry, at £12.9 million a day, closely followed by the £9.4 million daily pay out that comes from the various protection policies like life insurance, critical illness cover and many others held by UK customers. Not far behind this is commercial liability claims, worth £8.9 million each day.
The UK insurance and long term savings industry is responsible for 24% of premium income in the EU which is pretty high considering that we account for just over 12% of their population.
Meanwhile, every person in UK values various types of insurances differently. On a survey conducted by the Association of British Employers, more than half of the purchased premiums (52%) are motor insurance. Only 24% are for property insurance and 75% are for long term insurance products.
UK has a long savings and insurance sector at their heart. And this makes them Europe’s largest insurance market, ranking the third in the world.
ABI Director once commented; “Insurance plays a critical role for families and businesses in UK as they journey through the financial challenges in their lives. This gives everyone the idea that they are not alone. And this thought gives everyone the drive to go on with their lives”.
However, there is an increase of 0.5% in UK’s insurance premium tax recently with its current rate increased to 10%. This is to come up with the needed £700 million for their flood defense. This has been the second raise this year and is affecting UK’s insurance consumers, hopefully not their compliance to this part of their needs.