The UK insurance market contributes around £29 bn annually to the economy and supports more than 300,000 skilled jobs, according to a report from the Association of British Insurers. Around two-thirds of those positions are located outside London, giving the sector a substantial employment footprint across the country.
ABI members also contributed £18.5 bn to UK public finances in 2024, based on a tax study produced with PwC. The report argues that commercial insurance supports businesses by absorbing financial losses and providing cover for infrastructure projects where private capital faces significant risks.
The London Market represents a particularly large part of that activity. Including indirect and supply-chain effects, its economic impact is estimated at around £61 bn, while the market supports more than 60,000 jobs.
London also accounts for approximately 45% of the global specialty insurance market, according to figures cited by the ABI. The association said its scale exceeds that of the five nearest international competitors combined.
Lloyd’s of London contributes through its market structure for complex commercial and specialty risks. Its Chain of Security combines capital held at syndicate and member level with central resources backing policyholder claims.
The ABI report uses infrastructure projects to demonstrate how commercial insurance operates beyond conventional property protection. The Elizabeth Line, which opened in 2022, has carried more than 546 mn journeys across 41 stations along a 100-kilometre route.
Swiss Re Corporate Solutions provided risk management, construction insurance and third-party liability cover for the Crossrail project. The report said insurance helped manage construction and liability exposures associated with delivering the large transport programme.
Intact Insurance’s relationship with Network Rail provides another example. Its programme covers major railway stations, refurbishment projects and approximately 20,000 miles of UK rail track.
Aviva has also expanded its commercial construction activities through a combined Real Estate & Construction practice. The insurer provides cover for transport infrastructure and has developed insurance for mass-timber construction projects.
Public-private structures feature prominently in areas where private insurance capacity is more limited. The Fire Safety Reinsurance Facility was launched in April 2024 to improve insurance availability for residential buildings with combustible cladding or other unresolved fire-safety issues.
The facility was established by McGill and Partners with ABI support and in partnership with the British Insurance Brokers’ Association. Allianz, Aviva, AXA and Zurich provide support, while participating insurers are now able to cover losses of up to £75 mn.
Pool Re provides another government-backed structure through terrorism insurance for commercial property. The scheme provides capacity for properties across the UK, including major London assets such as The Shard.
The report also examines insurance following major business disruption. It cites the 2025 cyberattack on Marks & Spencer, which disrupted online and store operations and was estimated by analysts to be costing the retailer more than £40 mn per week during the outage.
M&S had cyber insurance involving several market participants. The ABI said the protection provided financial support while the retailer restored operations following the incident.
Smaller companies present a different problem because insurance take-up remains low across several commercial lines. SMEs account for more than 99% of UK businesses and more than half of national GDP, according to figures cited in the report.
Cyber policies are one area where cover increasingly includes services before and after an incident. These services may include penetration testing, employee training and incident response planning for companies without large internal cybersecurity teams.
Trade credit insurance is also cited as a source of protection against customer defaults. DCS Group has used Coface trade credit insurance for more than a decade while expanding its distribution and manufacturing operations.
Commercial insurance products are also being adapted for newer types of small businesses. Hiscox has developed cover for activities including e-sports venues, padel and pickleball facilities, immersive gaming businesses and competitive socialising locations.
These businesses often combine property and liability exposures with business interruption risks. Treating them as defined trades allows insurers to price coverage around operating models that fall outside older underwriting categories.
The ABI report also examines insurance supporting renewable energy and new technology projects. Commercial policies in these sectors include construction cover, engineering inspections and protection against weather-related losses.
Zurich’s work with Maersk is cited as an example of climate risk analysis being applied to port infrastructure. Zurich also works with building materials company Holcim on risks associated with renewable energy and lower-carbon construction technologies.
Parametric insurance provides another approach to weather exposures. The report cites Swiss Re’s FLOW water-level product and a Red Weather Warning policy developed with WTW, both of which use predefined triggers rather than conventional loss adjustment.
Under these structures, payment is triggered when an agreed measurement reaches a specified threshold, such as a river level or Met Office warning. This allows funds to be released without first determining the insured’s precise physical loss.
The ABI argues that commercial insurance should receive greater consideration in UK economic and financial-services policy. Its report presents the sector as both a major contributor to employment and tax revenue and a source of risk capacity for infrastructure, businesses and new technologies.
