ABSTRACT
The proverbial ‘man in the street’ commonly underestimates the true significance of the insurance companies as a component of the UK financial system. Some idea of their significance can, however, be gained by reference to their premium income for business written in the UK of £18,438 million in 1984; to the cash value of their net acquisitions of assets in the same year of £6,932 million; and to their outstanding investments with a market value of £114,630 million at 31 December 1984. In order to understand how insurance companies have achieved their position of strength within the UK financial system, it is first necessary to examine briefly the origins and history of the insurance industry. 1
