UK Insurance, Insurance in United Kingdom

UK Insurance, Insurance in United Kingdom

The UK insurance business is an important contributor to the economy, a major employer and a significant source of overseas earnings. It helps businesses to protect themselves from risk and provides a wide range of services to ordinary people, from car and house insurance to pensions, life cover and savings.

Today Lloyd's of London is the world's leading insurance market, housed in an award-winning modern building in Lime Street in the City of London. Its origins, however, lay in the more modest surroundings of a 17th century coffee house.

Insurance provides five strategic benefits to the society.

    * Freedom from what would otherwise be crushing personal and business liabilities.
    * Security at home and work against accident, crime, fire and natural calamities.
    * Better health from additional investment in medical care.
    * Prosperity through support for entrepreneurial energy, innovation and risk taking.
    * Flexibility by being better tailored to individual circumstances and making social and economic life less reliant on Government.

By analyzing the above points it is very clear that a world without insurance will be more daunting, poorer and stagnant place.

Basic principles

Although many types of insurances seem complicated still the basic principles are straightforward. Insurance companies assess the risk of any eventuality and the potential downside associated with it. Then, based on past experience and their own expertise, insurance companies calculate the 'premium' that a customer needs to pay to provide cover against injury or loss. When the insured event happens, the company pays out the agreed level of claim.

Overall, the total premiums must cover the total claims, which may need to be paid out. To help ensure that costs are kept as low as possible, and that customers' needs are met, insurance companies also invest in the stock market and elsewhere.

The main types of insurance in United Kingdom are:

    * General insurance.
    * Life and pensions.
    * Health and protection
    * Car insurance. Remember to always select a car insurance company that understands the industry.
    * Travel insurance, which can be either multiple or single trip tra