The UK insurance market is the second largest global centre for insurance after the US, according to the International Financial Services London (IFSL).

The latest statistics suggest that the UK insurance market performed better than Japan in 2007 to emerge the second largest global centre for insurance and attracting 11 per cent of global premium income.

Figures from IFSL also show that the overall premium income of the UK’s insurance industry was up by a fifth in 2007 to reach £263bn. This is mainly because of a rise in occupational pensions premiums and to a minor extent the increase in life insurance premiums also contributed to the growth.

IFSL argues that so far the economic decline has had limited effect on the UK insurance market.

The study found that new long-term premium income for the first three quarters of 2008 declined by 11 per cent on the same period in 2007.

IFSL says that Gross premium income on the London Market was calculated at roughly £24.5bn in 2007, a slight increase from last year’s total.

London is an important centre for international insurance and reinsurance, especially for marine and aviation business and reinsurance.

IFSL figures suggest that the insurance sector accounts for an estimated 1 per cent of UK Gross Domestic Product (GDP), however, this excludes brokers and other auxiliary professions.