Insurance

Types of insurance

The UK insurance market is worth close to £50 billion in 2013 according to the Association of British Insurers. As such it represents a huge share of GDP. There is a wide range of  insurance available. If we confine ourselves to the consumer insurance market we can identify the following markets.

  • Life insurance
    • Endowments and other savings scheme
    • Pensions related
  • Home insurance
    • Contents insurance
    • Buildings insurance
  • Motor insurance
    • Car insurance
    • Warranty insurance
  • Travel insurance
    • Ski insurance
  • Personal accident insurance
    • Ensuring people have the funds to make ends meet if injured.
  • Health insurance
  • Dental insurance
  • Mortgage payment protection insurance
Insurance is about a pooling of risks. Essentially, in order to gain cover, policy holders pool their risks rather than face them alone. Insurance companies generate income from charging policy holders a premium and at the same time investing premiums. Products such as life insurance and endowments tend to be held over decades. This allows the insurance provider with a long term investment horizon.

The UK insurance market is the largest in Europe and the third largest in the world. It accounts for 7% of worldwide premium income.
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