View more on these topics

Life premiums ‘to reach £198bn by 2019’

Sprouting-Money-Growth-Emerging-Currency-700.jpg

UK life premiums will grow by almost £30bn over the next four years, according to figures from EY’s ITEM club.

The growth would represent an increase of 16 per cent on 2015’s predicted total of £170.9bn, and bring the UK industry to £197.6bn.

EY says that growth of 3.8 per cent in 2014 will slowly drop, hitting 3.4 per cent by 2016 before recovering to 3.8 per cent in 2018 and reaching 4 per cent in 2019.

By contrast, the French life market is expected to see 4 per cent growth in 2015, while the forecast for Germany is 3.4 per cent.

EY’s UK head of insurance Mark Robertson says: “Having made good progress to grow their business in the aftermath of the financial crisis, when life premiums plummeted from their 2008 peak of £268bn to £154bn in 2010, UK insurers have been challenged by recent changes to the retirement market.

“As they battle hard to retain their dominant position in the life savings space, it is not surprising that premiums are set to slow after their recent growth spurt.

“The freedoms will mean a shift away from traditional retirement products to alternative investment vehicles, such as Isa-style provisions and property, which will certainly affect the growth of premiums. But there might also be more of a case for life bonds, if insurers can meet today’s demands for greater transparency and lower fees.”

Screen Shot 2015-07-31 at 10.18.44

Recommended

Aviva-signage-building-2013-700.jpg
4

Will life companies’ D2C experiment come undone?

Life companies attempting to break into the direct-to-consumer market and rival the dominance of Hargreaves Lansdown have a huge challenge ahead, say platform consultants. This week Aviva became the latest insurer to launch a direct platform, powered by FNZ. The platform will include an Isa, Sipp and general investment account and customers will be able […]

Money-Currency-Coins-Pound-GBP-700.jpg
1

Third of advisers see PI premiums rise

A third of advisers have seen an increase in their professional indemnity insurance premiums this year, Apfa research shows. A survey of 271 advisers carried out by NMG on behalf of the trade body found that 31 per cent of advisers have seen their PI premium rise, while 44 per cent received the same premium […]

Trusts: Easier than you think?

Protection providers often extol the benefits of placing plans in trust. The advantages for clients are widely recognised and numerous – inheritance tax mitigation, avoiding probate delay, controlling claim proceeds, and so the long, familiar list continues. Yet, dismissed as unnecessary form-filling, or simply viewed as irrelevant in the context of a mortgage sale, less […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Leave a comment