Economy is something
that is supported by various factors that contribute in its growth or downfall.
Though, there are several such factors that determine the growth of an economy,
but insurance sector is definitely one of them and certainly the most effective
one too.
Likewise, other sectors or industries, insurance
industry has its own set of challenges and opportunities. Specifically talking
about the UK region, mentioned below are some facts that underscores the
significance of insurance sector.
1. Employment: The insurance
sector is a bread earner for around 3, 20,000 people in the UK. Mostly, the people
are employed in insurance companies, the Lloyds market, brokers and several
other auxiliary services
2. Funds under management: The insurance
companies majorly work as asset managers and are managing around 1.8 trillion
Euros of investments which equals to approx a quarter of UKs total net worth
3. Contribution to GDP: Insurance and
pension funds account for approx 1.6% of UK’s GDP. Another 1% of the GDP is
added by the UK general insurance brokers
The strong presence of insurance sector can
easily be understood by knowing its depth on three different levels such as
local, regional and global. Certainly, at all these three levels, insurance
sector has made its impact to a great extent.
It is commonly seen that insurers make a great
contribution to local communities. Usually, they support in building
flexibility and insure against the risk of natural mishaps such as floods. The
insurers also help the locals by funding on infrastructure projects such as
schools, hospitals, power stations, colleges, etc.
When assessed on regional basis, the insurance
sector has a strong presence. As in, the insurance industry supports and
provides jobs all over the UK that includes strong groups in Edinburgh, Norwich
and York.
When it comes to global scenario, here also
insurance sector stands the largest in Europe and a leading global centre. With
approx 30% of premium income coming from overseas business, the industry
showcases an internationalist outlook. Apart from this, some of the larger UK
insurers are having a growth sign in the high growth economies of Asia, Latin
America and Africa.
It won’t be wrong to say that insurance sector
is highly developed in the UK. Moreover, insurance sector is an integral part of
financial services industry and certainly a key asset for the UK economy.
Though, there are many challenges for the insurance sector so as to boost the
growth of an economy. But, the government realises the challenges and take apt
steps in order to overcome the challenges and turn them into great
opportunities. Basically, the motive is to make insurance sector help boost the
economy.
Knowing above stated facts can be realistic
overview of the insurance sector of the UK, but for a layman, it is more important
to select the best insurance policy that can suit their specific requirements
as in proper coverage from risks. For purchasing the best and most suitable
insurance policy in the UK, one needs to get in touch with professionals at Direct
Line contact number and get the most apt suggestions.
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