The UK insurance business has been concentrated in London as a global financial center for many years. The largest London international insurance market serves the financial flows of a number of countries and companies. The authority of the London international insurance market is based on a significant personnel potential of insurance specialists, a highly developed market infrastructure, as well as the presence here of the Lloyd Insurance Corporation, which is widely known outside the UK.

Representative offices or subsidiaries of all the world's largest insurance companies are located in London. The central offices of all major international insurance and reinsurance brokers are also concentrated here. The oldest (founded in 1760) and most authoritative classification society, the Lloyd Register of Shipping, operates. Headquarters of a number of international insurance organizations are located in London, as well as some structures of the national insurance market (Institute of London Insurers, Institute of Chartered Insurers, etc.), whose activities are of an international nature.

The main features of insurance in the UK

Types of insurance in the UK

Personal insurance in the UK is concentrated in specialized insurance companies, pension funds, as well as investment companies (building companies) that sell real estate to the public. Over the past ten years, there has been a steady increase in the collection of insurance payments.

A significant increase in insurance payments has been noted in recent years due to changes in pension legislation in the UK, which created economic incentives for the able-bodied population to purchase private pension insurance policies (plans).

Property insurance among the population is represented by a number of traditional types. Among them are the insurance of cars in private ownership, household property, civil liability, etc. Property insurance is also characterized by a steady pace of development. licensing insurance trade syndicate

The institutional structure of the UK insurance market is represented by joint-stock companies, which belong to their owners - shareholders; mutual insurance companies owned by their policyholders; friendly societies; branches and representative offices of foreign insurance companies. A large independent link of the national insurance market, which is of international importance, is the Lloyd Insurance Corporation. In 1990, 690 national and 143 foreign insurance companies were represented in the UK.

In accordance with the EEC directives, since 1982, no new universal (composite) insurance companies have been created in the UK. Personal and property insurance policies can be issued within the same group of insurance companies. UK insurance companies are not allowed to engage in any other type of business other than insurance.

Insurance business in the UK has two main areas:

- long-term life insurance (contracts can be concluded for many years);

- general insurance (including accident insurance and short-term life insurance: contracts are concluded for a period not exceeding one year)

Now more than 800 companies are authorized to engage in one or more types of insurance business in the UK. Almost 450 companies belong to the Association of British Insurers. Some companies are so-called mutual reproaches in the property rights of their insurance policy holders and professional services are also provided by some "friendly societies" (association of individuals.

In the UK, there are also many foreign companies in the insurance market, with which the British work closely. Small British companies, as a rule, limit their activities to the territory of their country. Most of the major general insurance companies also operate abroad, through branches, agencies or related local firms. Forms of insurance companies:

1. Private companies - with ultimate liability and share capital. In these companies, the shareholders have a substantial right to the profits of the company. Most insurance companies in the UK are privately owned.

2. General companies - owned by insurance policy holders and exist for profit. They are created for the benefit of policyholders. These companies are engaged in life insurance and make up a third of the market for all life insurance.

Types of insurance companies:

1. Mixed insurance companies (carry out both life and general insurance)

2. General life insurance branches

3. Branches engaged in individual life insurance

4. Reinsurance companies

5. Corporation "Lloyd"

Intermediary types:

1. Individual intermediaries:

a) insurance brokers;

b) brokers;

c) Lloyd's brokers;

d) independent financial consultants;

e) insurance consultants.

2. Insurance agents:

a) authorized;

b) company representatives

The basic structure of the London International Insurance Market - Lloyd Corporation - is represented by 400 insurance syndicates that unite individuals - underwriters who directly carry out the corporation's insurance business. The underwriters bear unlimited liability for obligations arising from the terms of the insurance contracts they have concluded within the framework of the syndicate. Dynamic and mobile structures of syndicates with a pronounced specialization in types (classes) of insurance form the economic environment of the international insurance market in the Lloyd Corporation system. Each syndicate is represented in this market through a leading underwriter who directly takes risks for insurance in the syndicate from an intermediary broker Lloyd's. Membership of Lloyd's corporate structure is open to all British citizens (residents) and foreigners (non-residents).

Insurance contracts in the UK are concluded directly by insurance companies, as well as through underwriting agencies and insurance intermediaries (agents and brokers).

The activities of insurance companies are regulated by the relevant legislation. Interestingly, a special law on the insurance corporation "Lloyd" in 1982 regulates the insurance activities of this corporation.

The functions of the state insurance supervisory authority in the UK are entrusted to the Department of Trade and Industry (DTI), which is headed by the Secretary of State for Trade and Industry. In practice, day-to-day insurance supervision is carried out by the Insurance Division of the Department of Trade and Industry.