One of the biggest challenges over the coming months for the UK insurance sector will be for the industry to improve its reputation with the public, it has been claimed.

Association of British Insurers director general Otto Thoresen has said that serious and public failings of the banking sector over recent years have acted to tarnish the reputation of the insurance sector, through little fault of its own.

He commented: "Despite the valuable role insurance plays in millions of people's lives, the public perception of our industry is not high. We need to do something about this."

Mr Thoresen added that every day insurers pay out a combined £173 million in pensions and life insurance, as well as a further £58 million in general insurance claims.

Meanwhile, the British Insurance Brokers' Association recently gave its backing to a new campaign that will form part of a crackdown on uninsured driving in the UK