Funds invested in insurance-administered individual and occupational
pensions have shot up by 18 per cent to £500bn in 1999 from
£425bn the previous year, according to latest ABI figures.
The figures, published in the latest ABI quarterly research review
Insurance Trends, are provided by the Government Actuary's Depart- ment and
give an estimate of the amount of funds invested in insurance products.
A further £235bn was invested in life insurance products, an increase
of 12 per cent from £210bn in 1998.
The figures show that in 1999, £320bn was invested in individual
pensions, up by 13 per cent from £280bn in 1998. Investment in
insurance-administered occupational schemes was up by 27 per cent to
£180bn from £145bn in 1998.
Funds invested in self-administered pensions grew by 12 per cent to
£775bn from £685bn in 1998. Investment in income protection
insurance products remained at £5bn in both 1999 and 1998.
Insurance-administered pensions now account for 39 per cent of all
pensions, up from 37 per cent on 1998.
The ABI also asked the GAD to look at how investment in insurance products
has changed since 1987. The amount invested in individual pensions has
increased by 550 per cent to £320bn from just over £50bn in 1987.
Between 1987 and 1999, funds invested in insurance products across the
board has grown more than threefold from £290bn to £915bn.
ABI director general Mary Francis says: “These figures emphasise the vital
role that insurance plays in underpinning people's financial security.
Thirty per cent of all personal sector wealth is now invested in insurance
“Insurers are playing an even greater role in helping people save for
their retirement. The industry is comm-itted to developing products, with
the emphasis very much on clarity and flexibility.”