UK INSURANCE MARKET DATA 2005

Overview

The UK insurance industry;

• is the largest in Europe and the third largest in the world;
• employs over 330,000 people
• had total net investments of £1,330bn at the end of 2005 accounting for almost 21% of the total net worth of the UK economy.

Penetration:

• reaches more parts of society than any other sector of the financial services industry
• 77% of households buy home contents insurance
• 72% of households buy motor insurance
• 64% of households buy home buildings insurance
• 47% of households buy life insurance.

Claims payments (2005)

• £334 million to victims of domestic burglary
• £495 million to victims of car thieves
• £140 million to victims of commercial crime
• £500 million to victims of uninsured drivers
• > £1 billion for weather related claims
• Private medical insurers pay out £6 million everyday
• Industry spends around £2 billion on health care annually.
• In 2004 paid out £144 million to pensioners and long term savers
• Life policies pay out £4.6 billion a year for death claims
• Income protection pays out more than £2.4 million a day to provide incomes for people who are too sick to work.

Key indicators

• Worldwide net premium income:- £166 billion (£42.1-Short term)
• Authorised Ins. Co's 31.03.2007:- 524 local ( 121-Life, 19 Composite, 384 General) and futher 524 non-UK.
• Insurance employees 2006: 322,900.

Key rankings:

• UK non life: Lloyds, Aviva, Royal Bank of Scotland, Royal and Sun Alliance Group, Zurich Financial Services (Source- Standards & Poors)
• UK Life: Aviva, HBOS, Standard Life, Legal & General, Lloyds TSB. (Source- Standards and Poors)
• UK Ins. brokers: Marsh, AON, JLT Group, Wiliis, Benfield Group (Source- Insurance Times)
• UK IFA's: Sesame, Barclays Bank, Openwork, Money Portal, Tenet Group (Source- Financial Adviser)
• Insurance markets: United States, Japan, United Kingdom, France, Germany (Source: Sigma- Swiss Re)
• Non-life international: Allianz- Germany, American International Group- US, Berkshire Hathaway- US, Zurich Financial Services- Switzerland, Munich-Re Group- Germany (Source- Fortune)
• Life/Health international: ING Group- Netherlands, AXA- France, Assicurazioni- Italy, Aviva- UK, Prudential- UK (Source- Fortune)
• Reinsurers International: Munich Re- Germany, Swiss Re- Switzerland, Berkshire Hathaway- US, Hannover Re- Germany, Lloyds- UK (Source- Reinsurance)
• Ins. brokers international: Marsh & McLennan- US, Aon- US, Willis- UK, Arthur J. Gallagher & Co- US, Wells Fargo & Co- US (Source: Business Insurance)