Insurance Growth Action Plan

Sajid Javid Excerpts

Thursday 19th December 2013 Written Statements

[The Financial Secretary to the Treasury (Sajid Javid)]

The insurance industry is a vital asset for the UK. It employs over 300,000 people across the country, attracts global capital, serves the needs of consumers, and is a major British exporter. This Government are therefore committed to making the UK one of the most competitive places in the world for insurance.

The Government are today launching a UK insurance growth action plan, which sets out five areas where action will be taken by Government and industry, working with other partners, to strengthen the sector’s contribution to economic growth and work together to enhance the UK’s position as a global leader in a truly global industry.

The UK industry in overseas markets

The Government will develop a co-ordinated, targeted approach to promotional and other activity, focusing on five key markets—Brazil, China, India, Indonesia and Turkey—including establishing a programme of senior Government and private sector visits, as well as prioritising financial services and insurance within upcoming free trade negotiations.

The UK as a location for insurers

The Government will develop a programme to target overseas insurers to move their domicile to the UK, including developing a marketing campaign setting out the business case for locating in the UK, and the regulatory authorities have committed to streamlining authorisations processes for prospective insurance applicants.

Insurers as long-term investors in the UK

Building on the successful outcome the Government negotiated on the solvency II directive, the following insurers—Aviva, Friends Life, Legal and General, Prudential, Scottish Widows, and Standard Life will work alongside partners with the aim of delivering at least £25 billion of investment in UK infrastructure in the next five years.

Serving UK insurance customers

The Government want to see an insurance sector that helps customers manage risk, puts its customers first—by harnessing the power of new technology and creating products that meet their needs—and has their trust and confidence. The Government ask that the industry commits to ensuring consumers are able to access the insurance products they need with information that enables them to make informed choices.

Skills and diversity in insurance

The Government’s aim is to see an insurance work force in the UK representative of the customers it serves and well equipped to meet their needs. To this end, the Government welcome industry’s proposals to: establish a gateway project to help people find apprenticeships and graduate training places within insurance; double the number of technical apprentices over the next five years; and strengthen the pipeline of senior female executives in the insurance industry.

Copies of the UK insurance growth action plan will be available on the gov.uk website and have been deposited in the Libraries of both Houses.