Brexit Deal Must Protect Insurance Sector’s Benefits to UK Economy: ABI

The insurance and long-term savings sector is one of the UK’s most productive industries, adding more than £40 billion (US$51.5 billion) a year to the economy and helping Britain thrive, according to a study commissioned by the Association of British Insurers (ABI).

The UK also is the world’s leading exporter of insurance and long-term savings, selling £13 billion ($16.7 billion) more to the rest of the world than is bought from abroad, said the analysis which was compiled by London-based economic consultancy Volterra.

The ABI-sponsored study also shows:

• Individual workers in the industry are around twice as productive as workers in sectors such as construction and manufacturing, each contributing between £135,000 and £150,000 ($173,704-$193,004) to the economy every year.
• The industry provides high quality jobs across the country. Of the 309,000 workers in the sector, 86 percent work full-time – significantly higher than the UK average of 67 percent. Three-quarters are employed outside London.
• In 2014, Britain exported more in insurance and long term savings than any other country – almost double that of our nearest rival the U.S.
• More than £3.5 billion ($4.5 billion) of UK insurance exports go to the European Union, while the United States accounts for £4 billion ($5.2 billion) of EU insurance exports and the rest of the world provides £5.2 billion ($6.7 billion).
• The industry has “a huge presence overseas,” with ABI members operating in more than 30 countries outside Europe. The largest of these markets are the United States, China, Japan, Singapore and India.

“The insurance and long-term savings industry is a jewel in the UK’s crown – leading the world in exporting insurance and pension services and helping Britain thrive,” said Huw Evans, ABI Director General, in a statement.

“The sector provides hundreds of thousands of quality careers, three-quarters of which are outside of London,” he added.

“Ensuring the continuing success of such a productive sector is something the UK representatives should have at the front of their minds during negotiations with the EU,” he said. “The right Brexit deal for insurers benefits the UK economy, thousands of UK employees and all the other businesses the sector supports on a daily basis.”

Source: Association of British Insurers