The economy is something that is supported by various factors that contribute to its growth or downfall. Though, there are several such factors that determine the growth of an economy. Nevertheless, the 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 equal 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, the 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.
However, when assessed on a 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. Also, 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, the 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 realizes 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 a realistic overview of the insurance sector in 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 aptest suggestions.