Life Insurance in the UK, Key Opportunities to 2019




All information is based on the Timetric report: ‘Life Insurance in the UK, Key Trends and Opportunities to 2019’.

Regardless of drowsy development over the audit time frame (2010-2014), the viewpoint for the UK disaster protection division is sure, as indicated by the new Timetric report, Life Insurance in the UK, Key Trends and Opportunities to 2019.

Driven by low profits for speculations, an experienced business sector and the usage of the RDR in 2013, the UK life coverage business sector’s gross composed premiums developed at a slower pace, from GBP137.7 billion in 2010 to GBP141.7 billion in 2014. In any case, extra security has remained the biggest section in the business, representing 72.8% of the business’ gross composed premium in 2014.




Looking ahead to the following five years, Timetric conjectures the gross composed premium of the UK disaster protection portion to increment from in GBP141.7 billion in 2014 to GBP163.7 billion in 2019. This development will be impelled by the nation’s great demographics, expanded interest for mass annuities and pay charge alleviation.

Superannuation and annuities are at the top

The report finds that superannuation and annuities protection are the main classifications in the nation’s life coverage classification. Superannuation protection represented 57.8% of the life gross composed premium in 2014, with an estimation of GBP81.9 billion, and is relied upon to hold its position as the biggest class in the life section throughout the following five years, with a normal gross composed premium of GBP94.6 billion in 2019.




Then, benefits are estimate to remain the second-biggest classification, with a gross composed premium of GBP34.2 billion in 2019. As indicated by Aegon Insurance, the UK annuity class is the biggest in the Europe and the third-biggest on the planet after the US and Japan. In 2014, around 47% of the UK’s working populace contributed towards benefits.

Be that as it may, the as of late actualized Pension Schemes Act 2015 is prone to negatively affect the buy of annuities and will decrease life span dangers at benefits plans. Jay Patel, Insurance Analyst at Timetric, cautions that the adjustments in the benefits administration, including giving laborers more control over their benefits reserves after retirement, will urge beneficiaries to lessen interests in annuities and annuity items.

“These changes will decrease the edges for back up plans, influencing interests in foundation and corporate securities. With a specific end goal to defeat this, safety net providers are urged to grow new items for retirees who don’t require annuities,” says Patel.

Timetric’s ‘ Life Insurance in the UK, Key Trends and Opportunities to 2019’ report 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 category
  • Key trends, drivers and challenges for the life insurance segment
  • A comprehensive overview of the UK economy and demographics
  • The various distribution channels in the UK life insurance segment
  • Details of the competitive landscape in the life insurance segment in the UK
  • Details of regulatory policy applicable to the UK insurance industry

Timetric’s ‘Life Insurance in the UK, Key Trends and Opportunities to 2019’ report provides detailed analysis of the market trends, drivers and challenges in the UK life insurance segment.

It provides key performance indicators such as written premium, incurred loss, loss ratio, commissions and expenses, total assets, total investment income and retentions during the review period (2010–2014) and forecast period (2014–2019).

The report also analyzes distribution channels operating in the segment, gives a comprehensive overview of the UK economy and demographics, and provides detailed information on the competitive landscape in the country.

The report brings together Timetric’s research, modeling and analysis expertise, giving insurers access to information on segment dynamics and competitive advantages, and profiles of insurers operating in the country. The report also includes details of insurance regulations, and recent changes in the regulatory structure.

  • Life insurance is the largest segment in the UK insurance industry, accounting for 72.8% of the industry’s gross written premium in 2014.
  • In 2014, life insurance penetration stood at 8.0%.
  • By October 2018 all UK-based employers are required to enroll their employees to workplace pension scheme.
  • Due to low interest rate environment and impending Solvency II legislation, it becomes difficult for pension scheme providers to meet their obligation to pensioners. In order to compensate for their liabilities they are buying bulk annuities.
  • According to Aegon Insurance, the UK pension category is the largest in the Europe and the third-largest in the world after the US and Japan.