The Association of British Insurers (ABI) released figures last week that suggest that the UK insurance industry “remains strong”. The news release shows how the industry has increased premium income and provides more jobs than in 2007. These are great figures for UK insurance which shows how they are weathering the recession storm.
In 2008 there were around 313,000 people employed by the sector which translates as a 1.3% increase compared to 2007 when there was around 309,000. Net premium income from general insurance (home, car, etc.) in 2007 was £33 billion, but in 2008 it had increased by £1 billion.
The really interesting figures though are to do with how much is paid out in claims by insurers. On average, each and every day, £239 million is paid out in life and pensions insurance benefits and £57 million in motor, household and other general insurance claims. When you start talking about these sort of figures, it puts into perspective your £300 car insurance policy!
It is good to see steady improvement through these difficult times but it is important that the sector remains focused as insurance protection is an important part of economic growth. Protection needs to be affordable to the public whilst being profitable to the insurance industry. As long as it remains this way then it will be a win/win scenario and the insurance sector will continue its strength through the economic downturn.