Importance of insurance
The United Kingdom is one of the most developed countries in the world and has the 5th largest economy. Hence, British people enjoy a very high standard of living. The insurance industry is vital to the British economy and makes significant contributions to the country’s GDP.
According to a 2013 HM Treasury UK insurance growth action plan the insurance industry accounted for approximately 1.6% of the GDP.
The report also mentioned that insurance companies managed investments that were worth 1.8 trillion pounds which were approximately a quarter of the UK’s total net worth. https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/263148/the_UK_insurance_growth_action_plan.pdf
For the average citizen, however, insurance safeguards them from financial loss due to circumstances beyond the person’s control. Insurance companies will cover expenses in these situations in return for a premium.
Types of Insurance
There are many different categories of insurance programs and policies offered in the UK. These range from life insurance and disability insurance to rent and landlord insurance.
Most British citizens will have some type of insurance program.
Aside from basic home and car insurance programs more advanced and custom made programs are also available to suit different needs. Here are some of the most widely used insurance programs in the UK.
1) Home Insurance
Most people in the UK will have home insurance if they own property as it is a legal requirement. This is also useful for homeowners as it makes it easy for them to repair their properties in case of damage.
Home Insurance in the UK will cover the cost of rebuilding houses if they are damaged by fire or storms. Some home insurance packages also include contents insurance. This ensures a person’s possessions if they are lost or stolen from their homes. The insurance package usually helps them replace the damaged object.
2) Car Insurance
Many people in the UK own their cars and can usually afford to get them insured. This is important as car prices soar and traffic conditions worsen in major cities. There are different types of insurance programs available that differ in terms of price and the services they offer.
A comprehensive car insurance program will cover damages, theft, and fire. This is extremely important since accidents are sudden and unavoidable. This will be very convenient for the owner and make it easier for them to cope with a loss in case of an accident.
3) Health Insurance
Although the UK offers free healthcare to its citizens through the NHS the British people can still opt for health insurance if they prefer private hospitals. Health insurance can cover a part of the medical bills for private treatments. This will usually include most tests and surgeries.
This is useful for people wishing for faster and more individualized treatment. Insurance also helps them afford to consult specialists in private clinics.
Top 3 Insurance companies in the UK
This is a prestigious multinational company based in London. It is one of the most trusted and well-known firms in the UK with 33 million customers in 16 countries.
Aviva plc offers different types of insurance. The list includes home insurance, car insurance, life insurance, health insurance as well as travel insurance.
Furthermore, the company also offers business insurance and income protection insurance. The company has a very accessible website and customers can also connect via various social media platforms.
The Royal London Mutual Insurance Society is authorized by the Prudential Regulation Authority. This is one of the biggest insurance companies in the United Kingdom with 150+ years of experience. The firm offers life insurance as well as business insurance. They offer many advantages to their clients that include mutuality and custom coverage.
Their clients can get tailor-made programs that fit their own specific needs and wants and the programs also have great value for money. Moreover, the company has an excellent customer support service. They also help clients find financial advisors in their areas.
This makes it very easy for clients to arrange meetings with their advisors and make well-informed decisions.
Legal & General
This is also quite a well-known firm in the UK. They are a versatile company that offers many different types of insurance programs.
Legal and General include home insurance, pet insurance, travel insurance as well as landlord insurance. The company has a very user-friendly website that allows clients to log into their accounts to conduct their business online from the comfort of their own homes.
This is very convenient for customers that lead a busy work life. Some many other companies and firms offer insurance programs in the UK. However, the above mentioned are some of the best and oldest firms in the field which offer the best service to their customers.