View more on these topics

Life premiums ‘to reach £198bn by 2019′

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.”

Recommended

HM-Treasury-700.png
1

Govt unveils major advice review

The Treasury and the FCA are to carry out a major review into financial advice to establish how the market can function better for consumers. The review will be supported by an advisory panel led by Scottish Widows chair Nick Prettejohn and will look at efforts to bridge the advice gap and the obstacles preventing […]

Board-Room-Meeting-Room-Business-700.png

High Court liquidates firms behind £1.5m land banking scam

Two Liverpool companies acting as “bookends” for a £1.5m land banking scam have been ordered into liquidation by the High Court. In January the Insolvency Service, which has led the investigation, secured the dissolution of Gilbert Webb Estates for marketing worthless land as an investment to groups including recovering cancer sufferers. And the High Court […]

FSCS-Piggy-Bank-Alt-500x320.jpg
2

Calls for FSCS reform as brokers pick up bill for IFA ‘miscreants’

Brokers are calling for urgent reform of the FSCS levy as they feel they are unfairly paying to “pick up the bill of miscreants” in the life and pensions sector. Presently, the FCA and the Financial Ombudsman Service categorise term assurance and critical illness as “non-investment protection policies”. However, the FSCS classifies them as life […]

Newsletter

News and expert analysis straight to your inbox

Sign up