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Strong growth in insurance market

The insurance industry is experiencing a strong growth in business, according to the ABI&#39s five-year review of the industry and its third-quarter figures.

The five-year review shows long-term insurance premiums have risen by 89 per cent to £106.4bn from 1995-99 compared with £56.29bn for the previous five-year period.

Life insurance accounts for 44 per cent of total premium income while pension business accounts for 56 per cent.

The ABI&#39s third-quarter figures for 2000 show new life insurance, pension and collective investment business rose by 7 per cent to £13bn compared with £12bn in the same quarter last year.

Life insurance policies remained at £6.6bn, while individual pension business rose by 12 per cent to £4.5bn from £3.9bn.

Sales of collective investment products rose by 18 per cent to £2.2bn from £1.8bn.

IFAs have kept a steady hold on the distribution market in the past five years, accounting for 57-61 per cent of single-premium life and pension business.

Regular-premium business through IFAs has risen by 6 per cent to 39 per cent last year from 33 per cent in 1995.

ABI spokesman Malcolm Tarling says: “Long-term business is a growing area. The rise in worldwide business shows how competitive and innovative the UK insurance market is. This review also shows IFAs are holding their own in a fiercely competitive marketplace.”

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