According to recent life insurance figures from the Association of British Insurers, 2008 saw total life insurance policy sales fall by 22 per cent. The provisional figures indicate a fall to total life insurance cover sales of £38.4bn.
Despite this, pension investment climbed considerably. Net premium income climbed some 18%, to a record level of £57.5bn. The figures were reported in health insurance magazine.
The ABI director of research and chief economist, Dr. Rebecca Driver, reportedly commented: "Against the background of a recession, it is encouraging that net pension income has gone up. The fall in life insurance investments was to some extent unavoidable. The government's ill-judged changes to capital gains tax have hit the insurance bond market, and we are seeing the effects of those changes here."







