Independent analysis by economists Volterra, commissioned by the ABI, found that the insurance and long-term savings sector is one of the UK’S most productive industries, adding more than £40bn a year to the economy.
Based on data from the Organisation for Economic Cooperation and Development (OECD), in 2014 Britain exported more in insurance and long-term savings than any other country – almost double that of its nearest rival, the US.
‘Huge overseas presence’
“The industry has a huge presence overseas,” said the ABI, adding that its members operate in more than 30 countries outside Europe with the United States, China, Japan, Singapore and India the largest of these.
While more than £3.5bn of UK insurance exports go to the European Union, the United States accounts for £4bn and the rest of the world £5.2bn, added the trade body.
Research has also shown that individual workers in the UK’s insurance industry are around twice as productive as those in sectors such as construction and manufacturing, each contributing between £135,000 and £150,000 to the economy every year.
The industry also provides high-quality jobs across the country, said the ABI.
Of the 309,000 workers in the sector, 86% work full-time – significantly higher than the UK average of 67% and three quarters are employed outside London.
‘Jewel in the crown’
Huw Evans, ABI director general, said the trade body has compiled the figures ahead of a Brexit conference and is calling on the UK government to secure a Brexit deal that will protect the multi-billion pound life insurance industry.
“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. The sector provides hundreds of thousands of quality careers, three quarters of which are outside of London.
“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.
“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,” he said.
