Long-term insurance premium income falls 35% in 2009

The drop follows an 18% fall in UK insurance market premium income in 2008 to £215.3bn, according to research from International Financial Services London (IFSL). IFSL's report, Insurance 2009, forecasts insurance premiums will remain subdued in 2009 with a recovery likely to begin next year. In 2008, premiums shrunk following a fall in long-term premiums which typically account for around 80% of UK insurance business. The sector also suffered due to exposure to the downturn through a fall in investment returns on assets and on the liabilities side through rising claims, though so ...