Can I first start by saying I’m not an insurance expert and any statistics quoted here are not from my own research, rather taken from other companies websites I found during my research. In other words, this article is just for fun – please don’t use any information here to make financial decisions and make sure to get proper advice and do your own research first. According to a recent article I read on the Statista website (link at bottom of page), the insurance industry in the United Kingdom is the largest in Europe. Or even more surprisingly, it turns out it’s the fourth largest in the world! These is even more surprising when you consider that in terms of population, we’re only the 21st biggest country in the world (out of 235) behind countries like Turkey, Thailand, Vietnam, Egypt and Iran. We’re also only 82nd in the world in terms of land area – a medium population on a little island. So, as one of the worlds leading exporters of insurance, we’re certainly appear to be punching above our weight!
The article goes on to say that in 2016, the UK insurance industry employed over 111 thousand people, and by 2017, the tax contributions from this industry were over 72 billion pounds which apparently is the largest contribution of any sector in the country. You can broadly define insurance into two main categories – life and non-life. Life insurance premiums in the UK in 2016 amounted to 168.9 billion euros whereas the rest of Europe combined amounted to under 700 billion euros in total. in the UK, there are also a further 82 billion euros of non-life insurance (e.g. car, business or home insurance) which is the second only to Germany in Europe.
Suddenly it makes sense that many of the leading companies in Europe’s insurance industry are found in the UK – 5 of the top 10 reside in the UK with Prudential being the largest with a market share of almost $54 billion USD. So you can imagine the huge scale of insurance claims management these companies will have to undertake even in an average year so moving away from the old fashioned paper style insurance claims to digital presents opportunities for huge savings. “In an increasingly digital world, removing the need to submit paper bills to health insurers offers medical providers and their patients a fantastic opportunity for improvement. The savings for insurers can be dramatic: manual claims submissions in the US are estimated to cost 74 cents, electronic submissions just 26 cents – a 63% improvement.” – Cegidim Insurance Solutions
Statista article link: https://www.statista.com/topics/4511/insurance-industry-uk/