The insurance industry both in the United Kingdom and abroad is typically a very mature and highly regulated sector of western economies. Insurance is the transfer or a risk from the policyholder (who pays a lender an annual sum known as the premium) in return for the transfer is risk to the lender (risk and terms are qualified in the form of an insurance policy). In the event something happens to the policy holders person or property that has been insured, the policy holder can claim from the insurance company usually for a financial sum usually equal to that of the loss incurred. Most insurance companies provide strict conditions as to the nature of insurance claims to prevent insurance fraud and to exclude of certain acts, (deemed not insurable such as acts of god). In most countries insurance for property is a condition of a mortgage being approved in the first place. It is also common sense to protect the most valuable assets you own such as your home, your car and of course your life.

In the UK there are literally hundreds of types of insurance to buy you peace of mind and protect both individuals and businesses. These sectors include Property and Home Insurance, Travel insurance, Commercial insurance, Life and Health Insurance, income protection and niche commercial insurance for specialist business activities. The industry is highly regulated and also very competitive due to the huge increase in the use of the Internet to obtain new business and provide comparative price tools via insurance portals. The industry is made up of insurance companies, middleman intermediaries, insurance brokers, appointed representative and introducers.

The use of the Internet to sell insurance policies is growing rapidly as most large lenders now sell directly to the general public via their websites as well as using the intermediary market. The ability to sell policies direct online without the use of a call centre or a middleman has reduced the cost of sale or for most lenders. For this is particularly true for Home Insurance and car insurance and travel insurance where the simplistic nature of policies makes it easier for users to answer multiple choice questions online in order to generate a quotation, which can then be easily processed using a credit card.  The policy holder policy documentation can be downloaded by the policyholder and the whole process can be achieve in minutes form anywhere in the world in the middle of the night.

In the United Kingdom, the market for insurance is also underwritten by Lloyd's of London which is based on a grouping or syndicate system that has been established in London for over 300 years. It dates back to maritime protection between merchants and gave birth to the insurance industry in the coffee houses of London. Most brokers have been pre-approved by either a placing broker (or a syndicate based in Lloyd's of London), to sell a particular policy. They will normally receive a commission and may or may not have the regulatory approval to hold clients' money. The book of business may build up to a point where the insurance broker receives a profit share from the lender (or underwriter) based on the profitability of the book of business. Therefore, the number of claims and their value is directly impacting brokers future potential earnings and steers their behaviour towards attempting to only ensure good quality risks that are less likely to have produce a future insurance claims. This page does not constitute advice and should be viewed as general information only.  We strongly recommend you contact your local insurance broker for professional advice.