General insurance news - IFLS report good news for general insurance market

International Financial Services London (IFSL) has reported that there was an 8% rise in income generated from UK general insurance premiums during 2008.

In total, the general insurance premium market was worth £47.2 billion, with experts attributing the 8% rise to an upturn in business coming into the UK from overseas.

The IFSL report confirmed that the insurance market in the UK accounts for 1.6% of gross domestic product, employing 325,000 people, with 50,000 of these working in London.

However, the general insurance market was alone in bucking an insurance downturn. Overall premium income fell by 18% to £215.3 billion.

IFSL's senior economist, commented, "The economic slowdown has shown that the UK insurance sector is sufficiently capitalised. Insurance companies have minor exposure to mortgage-related assets and losses on insurance coverage have been limited to specialised lines of business. The insurance sector has acted as a stabilising factor at a time of considerable volatility in the broader financial markets."