Insurance could create 22,000 new jobs by 2020

Sustainable and well-regulated growth in the UK financial services sector could create more than 218,000 jobs in the wider economy by 2020, according to research by PwC economists.

A projected growth of 33% year-on-year could see an additional 47,500 jobs in the financial services sector, with insurance industry roles accounting for 47%.

The report, Where next? Assessing the current and future contribution of the UK financial services sector, released today, is based on two scenarios representing the potential futures for the financial services sector and the British economy. The first is a vision of the future with a growing financial services sector, supported by robust regulatory scheme and economic conditions, and the second is a view of the financial services sector constrained by a weak economy and an obstructive regulatory environment.

PwC UK insurance leader Jonathan Howe said: “Our analysis shows the important contribution the UK insurance sector makes to not only the financial services sector, but to the whole of the UK economy. A thriving insurance sector is essential to both the UK economy and to individuals, yet it is important that this is supported with a sustainable and stable regulatory regime.

“The financial crisis brought to light many unsustainable practices in banks and providers of financial services that has highlighted the need for better regulation. The challenge for insurance policymakers is the provision of effective UK and EU regulation that limits the likelihood and impact of any future crises, while allowing both the insurance sector and the wider economy to prosper.”