The amount of personal wealth invested in insurance products has increased by 170% in real terms since 1988, finds the Association of British Insurers.

The £760bn invested in insurance products accounts for about one third of people's personal wealth.

“We invest almost 30% of our personal wealth with the insurance industry,” commented Mary Francis the ABI's director general. “This figure looks set to increase with next year's introduction of the stakeholder pension and the continued development of new and innovative products by UK insurers.”

UK insurance now contributes 2% in value added to the country's Gross Domestic Product and 8% of total world-wide insurance premium income.

Employing 370,000 people, the insurance industry brings in £7bn in overseas earnings.