Industry Analysis & Industry Trends
The Life Insurance industry in the United Kingdom has been severely affected by the financial crisis and subsequent recession. Growth in revenue that was achieved in the pre-crisis days was quickly wiped away over the two years through March 2009. As businesses encountered financial strife, the stock market plummeted and unemployment rose. This resulted in business expenditure on group policies falling while households dropped their cover to deal with more pressing financial responsibilities. More detrimental to the industry's revenue and bottom line was the steep fall in investment income, most of which came from depreciating share values and cutbacks in dividend payouts.
The industry has made some gains since bottoming out; revenue increased by 14.1% in 2010-11... purchase to read more
Industry Report - Starting a New Business Chapter
The Life Insurance industry has high barriers to entry. There are large capital requirements imposed on businesses looking to enter the industry, as well as the need to comply with stringent government regulations. The level of capital required is dependent on the size of insurers' operations, however they must be able to meet benefit payment costs, secure facilities, organise distribution contracts, hire staff and fund other general costs associated with the insurance business. It is particularly difficult for new entrants to attract skilled professionals that the life insurance business requires, given a tight labour market. This has been relaxed somewhat as a result of the recession when unemployment rose, which has seen a larger number of people looking for work in the profession... purchase to read more