3.2 The UK economy and Insurance Market——英国经济和保险市场
The United Kingdom is one of the world's most important countries in terms of financial and trading sector. The UK Economy is the biggest in Europe and is also ranked as the fifth worldwide as per the market exchange rates, in terms of GDP (Harbury and Lipsey, 1993). The UK Economy is characterizing by a free market connecting a low taxation and regulation on the part of the organization. Along with New York City and Tokyo, London is one of the most significant centres of trade and business in the world. Total of 70% from an overall country’s GDP is comes from the financial services and business related industries.
The economy of United Kingdom is the best and stable among the top countries in Europe and with moderately good economic performance. There is seen to be more declines in share from developed industries as compared to other financial service sectors for the duration of last several years. The service sector accounts for 65% of GDP, while developed occupies only 20% of nationwide output. In last several years Insurance business gives wonderful results as well as very high returns and helps in boosting the economical growth in UK. It is believed that without Insurance it was not possible to meet require of rising people with relation to their economy.
Insurance also provides risk protection cover for small businesses and employ over half the population of financial sector of company. Insurance also helps manage risks for businesses’ various stakeholders with an interest in the firm’s stability, and lowers the cost of financial distress and bankruptcy. Insurance also provides direct advice on good quality risk management and sensible risk-reduction.
Insurance market in UK
The UK insurance is biggest insurance market in Europe and 3rd biggest market in the world. Insurance market is a significant source of overseas income in UK. Insurance market in UK is having a total number of 339,000 employees, which make more than 30% of total financial services. Insurance in UK controls about added 17% of total investment in the London stock market. Out of all insurance companies Lloyd’s insurance company has the biggest market in UK.
The main types of insurance in United Kingdom are:
Life and pensions
Health and protection
General insurance companies involves in giving insurance for common purposes. General insurance will give business a vital role for giving a risk free life to insurers by minimizing the impact of unexpected and unwelcome risk. It lets individuals and businesses for unexpected future events, and helps them organizing their lives and businesses with enhanced conviction. The net claims for general insurance per running day in UK are about £74 million.