21 Jan Insurance Sector Proves its Worth

Insurance Sector Proves its Worth

The Association of British Insurers (ABI) has released a report which lays plain the enormous economic contribution of the insurance industry in the UK, with the car insurance, business insurance and health insurance sectors helping contribute £29.5 billion to the UK’s economy in 2017, paying around £12 billion in taxes.

The Key Facts document, which is produced internally by the ABI, also reveals that the sector paid out around £55 a year in claims, with £2.7 billion paid in claims to business liability insurance policyholders.

The investment and saving product insurance sector (£16 billion), annuity insurance sector (£14.7 billion) and car insurance sector (£10.6 billion) were the three largest payers. The £766.5 million paid out on pet insurance was a new record.

There are 303,500 people employed either directly or indirectly by the insurance sector in the UK, from insurance company executives to business insurance brokers and sales and support staff. This makes the UK the largest insurance market in Europe and the fourth largest globally.

The ABI commented, “Millions of people and businesses turn to insurers in their time of need to deal with unexpected financial shocks. Our country’s SME sector can thrive because of the safety net provided by our world-leading insurance sector. This data reminds us that insurers and long-term savings providers pay hundreds of millions of pounds every day to get things back on track and to support people in their retirement. Our sector is helping Britain thrive and remains a key part of a prosperous and financially resilient economy.”

According to statistics from Parliament UK, there were 5.7 million SMEs in the UK in 2017, making up for 99% of all businesses. Business insurance cover is what allows these businesses to operate confidently, knowing that they are protected from the financial fallout from many of the challenges that might otherwise threaten the existence of their businesses.