Sustainable and well regulated growth in the UK financial services could generate approximately 22,000 additional jobs in the insurance industry by 2020, according to anaylsis from PwC.
The company's latest report, Where next? Assessing the current and future contribution of the UK Financial Services sector said such growth would be possible with a robust, but supportive, regulatory regime and economic and market conditions also beneficial to the financial services sector.
Insurance industry jobs would account for approximately 47% of 47,500 additional jobs that could be created across the whole UK financial services sector, an average growth rate of 33% year on year by 2020.
In addition, approximately 218,000 more jobs could be created in the wider economy across the UK, the report said.
In addition, if conditions were favourable, the UK's GDP could be 2-3% higher by 2020 if financial services Gross Value Added (GVA - contribution to wider economy) rises by £50bn between 2013/14 and 2020/21.
However, with weaker financial services growth and if its GVA contribution rises by £9bn, UK GDP could only rise by 0.2% and create 12,000 additional jobs by 2020/21.
Jonathan Howe, UK insurance leader at PwC, 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."
