Figures released by the Association of British Insurers show that in 1999 £500bn was invested in UK insurance-administered individual and occupational pensions, up 18% on the previous year.
In addition, a further £235bn was invested in life insurance, up 12% on 1998.
The figures appears in the latest issue of Insurance Trends, the Association's quarterly research review. The information is drawn from estimates, commissioned by the Association from the UK Government Actuary’s Department.
Key figures show that in 1999:
*£320bn was invested in individual pensions - up 13% in real terms on the previous year *£180bn was invested in insurance-administered occupational pensions schemes, up 27% *£235bn was invested in life insurance products, a rise of 12% on the previous year
Between 1987 and 1999 funds invested in insurance products grew by nearly 220% in real terms from £290bn to nearly £915bn. The main factor was the increasing amounts invested in individual pensions, which, at £320bn, rose by over 550%.
During this period the percentage of pension funds invested in insurance administered individual and occupational pensions rose from 21% to 40%.
Mary Francis, ABI's director general, said: These figures emphasise the vital role insurance plays in underpinning people's financial security; 30% of all personal sector wealth is now invested in insurance products.
Insurers are playing an even greater role in helping people save for their retirement. The industry is also committed to developing products, with the emphasis very much on clarity and flexibility, to meet changing consumer needs.”
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