The UK’s life insurance segment is set to see a CAGR of almost 2% by 2018, according to a new study on ASDReports

Friday 25 July 2014, Amsterdam

Report description overview:

The new report now available on ASDReports, provides in-depth market analysis, information and insights into the UK life insurance segment, including the UK life insurance segment’s growth prospects by life insurance categories as well as key trends and drivers for the life insurance segment. By purchasing this report you will gain a detailed view of the competitive landscape in the life insurance segment in the UK, including Porter's Five Forces analysis of the life insurance segment.

The difference:

• Assess the competitive dynamics in the UK’s life insurance segment, providing you with the chance to get ahead of your competitors.
• Gain insights into key regulations governing the UK’s insurance segment and its impact on companies and the market’s future.
• Understand the demand-side dynamics, key market trends and growth opportunities, to better position your business for future growth.

Additional report highlights:
The life insurance segment in the UK is very well developed, with a high penetration rate of almost 9% of GDP in 2013. UK life insurers are therefore setting up new subsidiaries in Asia and Latin America, where there is significant scope for the segment. Life insurance is expected to improve over the forecast period, due to a gradual improvement in the UK’s economy, an aging population, the implementation of Solvency II, better risk management and higher profits. Its gross written premium is expected to reach GBP156 billion in 2018, recording a forecast-period CAGR of almost 2%.

The introduction of the Retail Distribution Review (RDR) in December 2012, a government initiative designed to increase consumer trust and confidence in insurance products and services, is expected to drive future growth in the life segment. The RDR was implemented by the FCA, and includes measures designed to implement professional standards for insurance advisers, as well as regulate both commissions earned and fees paid to financial professionals. The regulator introduced a ban on commissions and expenses to control the mis-selling of products by insurers.
In the short term, the RDR will possibly affect the growth of the life segment due to an expected reduction in the number of Independent Financial Advisors (IFAs), which account for much of the UK life segment’s distribution. However, due to improvements in the quality of advice given to consumers, and a reduction in the mis-selling of financial products, consumer confidence is expected to improve.