UK life insurance business continues to plummet
29th July, 2014
UK life insurance business volumes have fallen for a second successive quarter while profitability has also declined during the same period, according to a recent CBI survey,
The financial services sector saw three of the businesses involved in the survey grow during April to June this year but the life insurance market plummeted. The findings indicate a need for more competitive behaviour from life insurers and a requirement for them to make offers easily accessible to potential customers when they compare life insurance quotes online.
A total of 98 firms took part in the latest poll, which also reported that the decline in life insurance business is likely to continue on for the next three months.
Optimism continues to thrive amongst the top life insurers, however - a trend continuing into the fourth consecutive quarter. The only fall in optimism was seen in the general insurance sector, largely caused by a decline in business with foreign customers. Competition and demand are major concerns for the general insurance market, as indicated by the poll, and their hiring plans need careful consideration if they are to stabilise profits in the next quarter
Insurance brokers, meanwhile, saw a huge rise in business volumes in comparison to other sectors and this is expected to accelerate further over the next three months. Profitability was broadly stable for the brokers over the quarter to June and they are expected to grow their head count and raise investment in the coming year.