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 - Starting a New Business Chapter
The Life Insurance industry has high barriers to entry. There are large capital requirements imposed on businesses considering entering 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, but 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.
To compete as an insurer, operators must conform to strict legislation. The overseeing body is the Prudential Regulation Authority (formerly known as the Financial Services Authority). Ins.. purchase to read more