UK General Insurance Premiums Rose 5% in 2010

The insurance report 2011 by TheCityUK, says that general insurance premiums are strong rising to 5% in 2010 to £46.4 billion. The insurance sector in United Kingdom contributes largely to the UK economy. The Study by TheCityUK, found that the UK insurance sector has been a stabilizing factor in the broader financial markets even at the time of high volatility.

The report says that gross premiums on the London Market are estimated at £36.9 billion in 2010. The insurance sector in UK has paid out over £210 billion in claims during 2010. It is found that UK is being the largest insurance market in the world, comprising of 7% of global premium income.

The insurance sector accounts for 2.5% of GDP providing employment for 346,000 people where 50,000 are from the London Market. The total net profit generated is estimated as £5.3 billion in 2010. UK insurers contributed an amount of £10.4 billion in taxes, which is equal to 1.9% of total government tax receipts.

According to the report, the net gross premium income of the UK insurance sector was down in 2010 to £198.7 billion. Due to the slow down economy and less demand for long-term insurance products, the 2% fall is seen during the year and one-quarter decline from the peak in 2007. This resulted in large decline in long-term premium income.