While headlines often focus on rising premiums, the UK insurance industry in 2022 quietly demonstrated its colossal financial strength and pivotal role in the economy, with £290.4 billion in premiums written, a £1.9 trillion investment portfolio, and over £128 billion paid out to support customers and businesses in their time of need.
Key Takeaways
- In 2022, the UK insurance market's total gross written premiums (GWP) reached £290.4 billion, marking a 5% increase from 2021
- The UK insurance industry's contribution to GDP was £51.7 billion in 2022, equivalent to 1.9% of total UK GDP
- UK insurers held £1.9 trillion in assets under management as of end-2022, representing 40% of the UK's total financial assets
- In 2022, UK life insurance new business premiums totaled £18.5 billion, up 8% YoY
- Protection insurance sales reached 2.1 million policies in 2022, average premium £25/month
- Group life insurance covered 25 million lives in 2022, premiums £1.2 billion
- In 2022, motor insurance premiums totaled £50.2 billion, up 14% YoY
- Home insurance GWP reached £7.8 billion in 2022, average household premium £347
- Employers' liability insurance claims cost £2.1 billion in 2022
- In 2022, UK insurers paid out £128 billion in claims across all lines
- Motor claims frequency fell 5% to 12.5% in 2022, average cost £4,200
- Home claims totaled 1.8 million in 2022, payouts £5.6 billion, claims ratio 72%
- In 2022, the UK insurance sector employed 318,000 people full-time equivalent
- Insurance brokers numbered 5,200 firms employing 45,000 in 2022
- Diversity: 45% women in insurance workforce in 2022, up from 42% in 2020
The UK insurance industry grew strongly in 2022 with increased premiums, profits, and digital adoption.
Claims and Underwriting
1In 2022, UK insurers paid out £128 billion in claims across all lines
Verified2Motor claims frequency fell 5% to 12.5% in 2022, average cost £4,200
Verified3Home claims totaled 1.8 million in 2022, payouts £5.6 billion, claims ratio 72%
Verified4Injury claims under EL/PL cost £2.5 billion in 2022, 140,000 claims
Directional5Life insurance claims paid £15.2 billion in 2022, including 450,000 death claims
Single source6Fraudulent claims detected saved £1.3 billion in 2022, 150,000 cases
Verified7Average bodily injury claim severity up 8% to £22,000 in 2022
Verified8Whiplash claims reduced 20% post-reforms to 45,000 in 2022
Verified9Property damage claims ratio 55% in 2022 for general insurance
Directional10PMI claims utilization rate 42% in 2022, total £2.4 billion
Single source11Cyber claims notified 2,500 in 2022, average cost £320,000
Verified12Catastrophe claims from storms cost £1.2 billion in 2022
Verified13Denied claims rate averaged 8% across personal lines in 2022
Verified14Average settlement time for motor claims 25 days in 2022
Directional15EL injury claims success rate 75% in 2022
Single source16Travel claims payouts £1.1 billion in 2022, 1.2 million claims
Verified17Pet claims settlement ratio 95% in 2022
Verified18Large commercial claims over £1m numbered 850 in 2022
Verified19Underwriting profit for GI was £6.2 billion in 2022
Directional20Expense ratio for non-life insurers 28% in 2022
Single sourceClaims and Underwriting Interpretation
While paying out a colossal £128 billion in claims—nearly a London Olympics’ worth of settlements—the UK insurance industry demonstrated a surprisingly agile balance sheet, deftly managing everything from costly storms and whiplash reforms to rising injury costs and sophisticated fraud, all while still booking a robust £6.2 billion in underwriting profit.
Employment and Regulation
1In 2022, the UK insurance sector employed 318,000 people full-time equivalent
Verified2Insurance brokers numbered 5,200 firms employing 45,000 in 2022
Verified3Diversity: 45% women in insurance workforce in 2022, up from 42% in 2020
Verified4FCA regulated 1,800 insurers and 38,000 intermediaries in 2022
Directional5Average salary in insurance £52,000 in 2022, 15% above national average
Single source612% of workforce cyber-skilled in insurance per 2022 survey
Verified7Apprenticeships in insurance reached 4,500 starts in 2022
Verified8Regulatory fines totaled £120 million in 2022, mostly consumer duty breaches
Verified9Solvency II compliance cost insurers £450 million annually in 2022
Directional10Complaints to FOS from insurance: 185,000 in 2022, 65% upheld for consumers
Single source11PRA supervision covered 99% of premium income in 2022
Verified12Consumer Duty implementation affected 90% of firms by end-2022
Verified13Insurtech firms employed 15,000 in 2022, 20% growth
Verified14Actuarial vacancies 2,500 unfilled in 2022
Directional15Training spend per employee £2,100 in 2022
Single source16Regional employment: London 40% of total insurance jobs in 2022
Verified17Under-30s 18% of workforce in 2022
Verified18Brexit-related relocations created 1,200 jobs in UK insurance hubs in 2022
Verified19IFoA members in insurance 12,000 in 2022
Directional20Regulatory reporting submissions 1.2 million in 2022
Single sourceEmployment and Regulation Interpretation
The UK insurance sector in 2022 was a vast, tightly-regulated, and profitable machine—employing over 300,000 people, paying them well, and diligently fining itself £120 million—while quietly grappling with a talent crunch, a cyber-skills gap, and the persistent hum of nearly 200,000 customer complaints.
General Insurance
1In 2022, motor insurance premiums totaled £50.2 billion, up 14% YoY
Verified2Home insurance GWP reached £7.8 billion in 2022, average household premium £347
Verified3Employers' liability insurance claims cost £2.1 billion in 2022
Verified4Property insurance payouts for weather events totaled £1.4 billion in 2022
Directional5Commercial motor fleet policies numbered 1.2 million in 2022, premiums £8.5 billion
Single source6Liability insurance GWP was £12.3 billion in 2022, 14% growth
Verified7Travel insurance policies sold 15 million in 2022, GWP £2.9 billion
Verified8Pet insurance claims paid £850 million in 2022, average claim £1,200
Verified9Business interruption claims from Covid totaled £1.8 billion resolved by end-2022
Directional10Motor theft claims rose 12% to 120,000 in 2022, cost £500 million
Single source11Flood claims payouts were £530 million in 2022, affecting 25,000 homes
Verified12Private medical insurance subscribers 7.5 million in 2022, premiums £6.2 billion
Verified13Cyber insurance policies grew to 85,000 in 2022, premiums £1.2 billion
Verified14Construction insurance GWP £4.1 billion in 2022, claims ratio 65%
Directional15Average motor comprehensive premium £701 in Q4 2022, up 20% YoY
Single source16Home buildings premium inflation 11% in 2022
Verified17Public liability claims averaged £45,000 payout in 2022
Verified18GAP insurance add-ons on 25% of new cars in 2022, premiums £450 million
Verified19Marine cargo insurance GWP £2.3 billion in 2022
Directional20Directors & Officers (D&O) premiums up 25% to £1.1 billion in 2022
Single sourceGeneral Insurance Interpretation
The figures paint a picture of a society paying dearly for the privilege of modern life, where our premiums are chasing everything from our pricier cars and weather-beaten homes to our vulnerable pets, litigious employees, and hackable data at a truly relentless pace.
Life Insurance
1In 2022, UK life insurance new business premiums totaled £18.5 billion, up 8% YoY
Verified2Protection insurance sales reached 2.1 million policies in 2022, average premium £25/month
Verified3Group life insurance covered 25 million lives in 2022, premiums £1.2 billion
Verified4Critical illness cover claims paid £1.1 billion in 2022, average payout £85,000
Directional5Term assurance policies in force numbered 18.4 million in 2022
Single source6Whole of life market GWP was £3.2 billion in 2022, 12% market share
Verified7Pension annuities sold 45,000 in 2022, total value £2.8 billion
Verified8Income protection claims rose 10% to 65,000 in 2022, total payouts £450 million
Verified9Life insurance persistency rate averaged 88% in year 1 for 2022 policies
Directional10Over-65s held 55% of life insurance policies in 2022
Single source11Digital life insurance quotes grew 40% to 12 million in 2022
Verified12Guaranteed premiums now standard in 95% of life policies post-2022 reforms
Verified13Life insurers' solvency ratio averaged 210% in 2022
Verified14PRT deals numbered 15 in 2022, transferring £25bn liabilities
Directional15Equity release lending hit £4.1 billion in 2022, 12% growth
Single source16Funeral plans sold 180,000 in 2022, market value £1.5 billion
Verified17Life insurance complaints to FOS totaled 5,200 in 2022, up 15%
Verified18Average life cover amount was £175,000 for new policies in 2022
Verified19Women represented 45% of life policyholders in 2022
Directional20Joint policies accounted for 62% of new life sales in 2022
Single source21Lapse rates for life policies were 4.2% in 2022
Verified22Life insurance ad spend was £120 million in 2022
Verified2328% of UK adults have no life cover in 2022
Verified24Average term length for term assurance was 22 years in 2022
Directional25Life sector investment return was 3.8% in 2022 despite market volatility
Single source26Overseas life business GWP £4.5 billion in 2022
VerifiedLife Insurance Interpretation
While Brits are clearly doubling down on 'adulting'—signing up for protection in droves and paying out a billion in critical illness claims—the industry still faces the stark reality that over a quarter of adults have no cover at all, proving that selling peace of mind requires both witty marketing and serious persuasion.
Market Size and Growth
1In 2022, the UK insurance market's total gross written premiums (GWP) reached £290.4 billion, marking a 5% increase from 2021
Verified2The UK insurance industry's contribution to GDP was £51.7 billion in 2022, equivalent to 1.9% of total UK GDP
Verified3UK insurers held £1.9 trillion in assets under management as of end-2022, representing 40% of the UK's total financial assets
Verified4The non-life insurance segment accounted for 60% of total GWP in 2022, totaling £174.2 billion
Directional5Life and pensions insurance GWP grew by 4.2% to £116.2 billion in 2022, driven by pension risk transfer deals
Single source6The UK insurance market saw 1,200 new product launches in 2022, a 15% rise from 2021
Verified7Insurance penetration rate in the UK stood at 11.8% of GDP in 2022, above the European average of 9.2%
Verified8The sector's return on equity (RoE) averaged 10.5% in 2022, up from 7.8% in 2021
Verified9UK insurance M&A activity reached 450 deals in 2022, valued at £12.5 billion
Directional10Digital insurance sales accounted for 42% of new policies in 2022, up from 35% in 2020
Single source11The market's combined ratio for non-life insurance improved to 92.1% in 2022 from 95.3% in 2021
Verified12UK insurance exports generated £8.7 billion in 2022, primarily reinsurance services
Verified13There were 1,050 active insurers licensed in the UK as of 2022, down 2% from 2021 due to consolidations
Verified14Insurtech investment in the UK totaled £2.1 billion in 2022 across 180 startups
Directional15The sector's solvency coverage ratio averaged 180% under Solvency II in 2022
Single source16Premium growth rate for the UK market was 7.1% in real terms in 2022
Verified17Household insurance density reached £2,450 per capita in 2022
Verified18Commercial insurance GWP hit £85 billion in 2022, up 6.8%
Verified19The market's total equity capital stood at £210 billion in 2022
Directional20Insurance intermediation turnover was £28.4 billion in 2022, employing 400,000 people
Single source21Cyber insurance premiums grew 25% to £1.2 billion in 2022
Verified22Pet insurance policies reached 4.5 million in 2022, premiums £1.4 billion
Verified23Travel insurance GWP was £2.9 billion in 2022, recovering 80% from pre-pandemic levels
Verified24Motor insurance market share of personal lines was 52% in 2022
Directional25Home insurance average premium rose 12% to £350 annually in 2022
Single source26Pension risk transfer volumes hit £25 billion in 2022
Verified27Reinsurance recoverables for UK insurers were £45 billion in 2022
Verified28The sector paid £14.5 billion in corporation tax in 2022
Verified29Embedded insurance partnerships grew 30% to 500 in 2022
Directional30UK insurance density was £4,300 per capita in 2022, highest in Europe
Single sourceMarket Size and Growth Interpretation
While the nation frets over the cost of living, the UK insurance industry is calmly building a fortress of finance—managing an eye-watering £1.9 trillion in assets, launching new products with the zeal of a tech startup, and proving that even in a crisis, there’s serious money in making sure we’re all covered for it.
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