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Life Insurance in the UK: Market Research Report

Market Research • Market Size • Industry Statistics • Industry Analysis • Industry Trends

Life Insurance Market Research Report | SIC K65.110 | Jun 2016

High life: Growing investment returns have counteracted declining premium income

IBISWorld’s Life Insurance market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

Report Snapshot
Market Share of Companies
Aviva plc Aviva plc market share
Legal & General Group plc Legal & General Group plc market share
Lloyds Banking Group Lloyds Banking Group market share
Prudential plc Prudential plc market share
Industry Statistics & Market Size
Annual Growth 12-17
Annual Growth 17-22
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Industry Threats & Opportunities
  • The industry's revenue performance has been highly volatile over the past five years
  • Operators have looked to reinsurers in order to enlarge their capacity and diversify risk
  • Profit margins are expected to widen, supported by improved risk management modelling techniques
  • ... purchase to read more

Industry Analysis & Industry Trends

The industry has been adversely affected by weak demand for life insurance policies for much of the past five years, while regulatory changes have also affected performance. Weak business confidence levels and severe household spending pressures hampered demand at the start of the period. The Retail Distribution Review, which came into effect in January 2013 to ensure more transparency and fairness in the industry, is also expected to have negatively influenced demand for some products because brokers were compelled to charge customers a fee instead of earning a commission. In addition, annuity reforms that came into effect in April 2015 eroded demand for annuities. Industry revenue is comprised of both premium income and investment income... purchase to read more

Industry Report - Industry Analysis Chapter

IBISWorld expects the Life Insurance industry to generate revenue of £50.7 billion in 2016-17, an increase of 6.9% on the previous year, supported by rising real incomes and low unemployment levels. The industry generates revenue from premiums and investment returns. Investment returns are highly volatile because they depend on the performance of financial markets. Since investment income accounts for a large share of industry revenue, revenue has fluctuated dramatically during the past five years. Premium income is expected to grow weakly during the year. However, annuity reforms that came into effect in April 2015 are expected to continue to hinder demand for annuities and curtail premium income growth. Nev.. purchase to read more

Additional Insights for the Life Insurance Industry

IBISWorld identifies 250 Key Success Factors for a business.The most important for the Life Insurance Industry are

  • Financial position of the company (as against financial structure)
  • Having an efficient distribution/collection network
  • Must comply with government regulation
  • IBISWorld analysts also discuss how external factors such as FTSE 100 and Real household disposable income in the Life Insurance industry impact industry performance... purchase to read more


    Industry ProductsRelated Reports

    What is the Life Insurance Industry?

    Industry firms provide life insurance cover and life-based investment products. Life insurance obliges the insurer to pay designated beneficiaries a sum of money in the event of the insured individual suffering death, disablement, serious illness or injury. As with all insurance contracts, exclusions may apply that limit the insurer's liability, such as suicide, riot or war.

    Industry Products
    AnnuitiesLife insurance Disability and long-term care insurance
    Industry Activities
    Providing term life insuranceProviding permanent life insuranceProviding annuitiesProviding life-based savings and investment schemes

    Table of Contents
    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • FTSE 100
  • Real household disposable income
  • year bond rate
  • Business confidence index
  • Population aged 18 to 64 years
  • Current Performance
  • Revenue trends
  • Hardening cycle
  • Volatile profit margins
  • Chart: Revenue Growth
  • Industry Outlook
  • Revenue improves
  • Margins widen
  • Regulatory changes
  • Consolidation continues
  • Table: Life Insurance Industry Revenue Outlook
  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Life Insurance Industry Lifecycle vs The Economy
  • Products & Markets
    Supply Chains
  • Key Buying Industries
  • Mining and Quarrying
  • Manufacturing
  • Consumers
  • Key Selling Industries
  • Fund Management Activities
  • Insurance Agents & Brokers
  • Other Activities Auxiliary to Insurance and Pension Funding
  • Reinsurance
  • Products & Services
  • Life insurance
  • Annuities
  • Disability and long-term care insurance
  • Chart: Life Insurance Industry Products and Services Segmentation
  • Demand Determinants
    Major Markets
  • Private market
  • Commercial market
  • Chart: Major Market Segmentation for the Life Insurance Industry
  • International Trade
    Business Locations
  • Chart: Business Locations by State
  • Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Policy payments
  • Wages
  • Commission and brokerage
  • Other expenses
  • Chart: Cost Structure Benchmarking – Sector vs Life Insurance
  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Life Insurance Industry
  • Industry Globalization
    Major Companies
    Prudential plc
    Legal & General Group plc
    Aviva plc
    Lloyds Banking Group plc
  • Table: Prudential plc - financial performance
  • Table: Legal & General Group plc - financial performance
  • Table: Aviva plc - financial performance
  • Table: Lloyds Banking Group plc - financial performance
  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Life Insurance Industry
  • Chart: Tools of the Trade: Growth Strategies for Success
  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth
  • Regulation & Policy
    Industry Assistance
    Key Statistics
  • Table: Industry Data for the Life Insurance Industry
  • Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Total Assets (2008-2022)
  • Table: Annual Percentage Change for Key Industry Data
  • Table: Key Ratios for Industry Key Data
  • Jargon & Glossary
  • A partnership between a bank and insurance company whereby the insurance company uses the bank's sales channels in order to sell insurance products.
  • Combined Ratio
  • A measure of profitability used by an insurance company to indicate how well it is performing. It is calculated by dividing incurred losses and expenses by premiums earned.
  • Life Office
  • A company that sells life insurance.
  • Permanent Policies
  • These combine life cover with a savings component that allows the policyholder to accrue cash in the policy that can be borrowed or distributed.
  • Term Life Policies
  • These provide a predetermined lump sum if the event insured against occurs during the specified period of time.
  • Underwriting
  • The process of measuring risk and determining the premium that needs to be paid to insure that risk.

  • Why Buy this Report?
    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Life Insurance:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Life Insurance market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Life Insurance, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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