Long-term savings and life insurance includes pensions, annuities, investments and savings and protection policies. Long-term insurance products are used to provide an income during retirement and provide for individuals and their families following an accident, illness or a death in the family.
The chart opposite shows the percentage of households with different longterm insurance products and the average annual expenditure on those products. Of the 26.4 million households in the UK in 2012, 5.7 million had whole of life assurance, 2.5 million had a personal pension, 1.1 million had a non-mortgagerelated endowment, 0.8 million had a mortgage-related endowment, 0.7 million had term insurance and 0.4 million had income protection.
The UK insurance industry received worldwide net premium income of £160.4bn and paid out benefits of £191.2bn in 2013.
PENSION AUTO ENROLLMENT
Between 2012 and 2018 certain employees who are not already in a work-based pension scheme will be automatically enrolled into one. 4m Just over 4 million pension policies* were sold in 2013, nearly 30% higher than the 3.1 million sold in 2012.
General or non-life insurance includes motor, property, accident, health, liability, pet insurance and other specialist lines. These play an important part in UK society, with the majority of UK consumers purchasing at least one general insurance product. It also plays an important role in helping businesses to cope with unforeseen events and to recover more effectively.
The UK insurance industry is the largest in Europe and the third largest in the world. It plays an essential part in the UK’s economic strength, managing investments of £1.8 trillion (equivalent to 25% of the UK’s total net worth) and paying nearly £12bn in taxes to the Government. It employs around 315,000 individuals, of which more than a third are employed directly by insurers with the remainder in auxiliary services such as broking.
On behalf of its members, the ABI works with government, regulators and policymakers to create effective insurance markets for consumers. We represent the UKbased insurance industry on a wide range of issues to Government, regulators, other public bodies, and the media. We provide consumers with general information on insurance and savings products and services and promote best practice, transparency and high standards within the industry.
The UK insurance industry contributed nearly £12bn in taxes to the UK government in 2014. The number of people employed by the insurance industry in the UK, of which 118,100 are directly employed by insurance companies and 196,300 are employed in auxiliary services.
Of the 26.4 million households in the UK in 2012, 20.1 million had contents insurance, 19.6 million had motor insurance, 17 million had buildings insurance, 3.1 million had mortgage protection, and 1.6 million had private medical insurance.
The UK motor insurance market made a £53m underwriting loss in 2013. The motor insurance industry last made an underwriting profit in 1993.Motor insurers paid out £17.1m per day in private car claims, for a total of almost 3 million claims. The average cost for a claim settled for private car insurance, although the average claim for bodily injury was much higher at £11,292.