Insurers Contribute over $17 Billion to UK Economy

The Association of British Insurers notes that the industry made a “total contribution of £10.4 billion [$17.21 billion] to the Exchequer – which would cover the entire £10.2 billion [$16.9 billion] Home Office budget. Insurance companies in the Hundred Group paid the third highest corporation tax of any sector.” The figures highlight the “crucial role” the industry plays in the UK’s economy.

The report, prepared by the ABI and PricewaterhouseCoopers (PWC), also listed the following findings:
— Corporation tax paid by insurers was £2.7 billion [$4.473 billion] in 2010 – or 6.4 percent of total Government corporation tax receipts. This is a 50 percent jump in corporation tax paid out by ABI members since 2009.
— Insurance companies in the Hundred Group paid the third highest corporation tax of any sector.
— The £10.4 billion Total Tax Contribution breaks down as £4.6 billion [$7.62 billion] taxes borne and £5.8 billion [$9.6 billion] taxes collected on behalf of Government including Insurance Premium Tax.

ABI Director General Otto Thoresen commented: “The tax paid by the UK insurance industry could pay for the whole of the Home Office budget, or fund the budgets of the Departments for Transport, Communities and the Foreign Office put together.

“Insurers are crucial to the economy. Our total tax contribution is now higher than it was before the recession showing the important role the insurance industry is playing in the recovery and how resilient the industry is during tough times.

“These figures highlight the importance of consistent, competitive tax rules which could help the industry to grow further so that it can continue to make an important contribution to the UK coffers,” he continued. “We are talking to the Government about how to make the UK tax system an asset for the UK when it comes to retaining and attracting insurers to the UK. It is important we encourage our good, successful UK businesses to expand and grow rather than having rules which make the UK a less attractive place to base a business.”

The bulletin also pointed out that the UK’s insurers are “major contributors to the UK economy and crucial to its future growth. One of the biggest private employers in the country, the wider insurance industry employs over 275,000 people of which 152,000 work for ABI member companies, who pay employment taxes worth £2.64 billion [$4.372 billion].

Source: Association of British Insurers

Topics Carriers Market