London market premium income up 2% in 2010
The net worldwide premium income of the UK insurance sector has fallen for the third year running in 2010 to £198.7bn.
According to the Insurance 2011 report by TheCityUK, the 2% fall during the year and one-quarter decrease from the peak in 2007 was largely a result of a decline in long-term premium income as the economy slowed and demand for long-term insurance products fell.
General insurance premiums remained strong, increasing by 5% in 2010 to £46.4bn.
Gross premiums on the London market were conservatively estimated at £36.9bn in 2010, up 2% on the previous year. Lloyd’s generated 53% of identified London market premiums, the company market 44% and P&I clubs the remaining 3%.
Marko Maslakovic, senior manager, economic research at TheCityUK, said: “The UK insurance sector has been a stabilising factor at a time of considerable volatility in the broader financial markets. Most insurance companies have restored their capital to pre-crisis levels by the end of 2010.
“The UK remains the third-largest insurance market in the world in 2010 with around 7% of global premium income. Its premiums per head are the fifth-highest in the world and premiums as a proportion of GDP the third-highest.”
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