Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • July 2013
07

Modest growth for GI but life insurance remains below par

Open-access content Monday 1st July 2013 — updated 5.13pm, Wednesday 29th April 2020

Life insurance sales continued to decline strongly and rapidly over the last three months, with the level of business remaining well below normal, according to a survey of the financial sector.

But the Financial services survey, conducted by the CBI and consultants PricewaterhouseCoopers, noted that there was modest growth in general insurance, with profitability rising for the first time since March 2012. The number of people employed in the general insurance sector also rose, and strong growth in business volumes is expected next quarter.

However, expectations of a strong rise in business for insurance brokers did not materialise, and business volumes were flat.

Jonathan Howe, PwC's insurance leaders, said: 'As hoped, [general] insurers have seen a welcome increase in corporate business. Although retail activity has remained steady, there are growing hopes that it will accelerate as the economy recovers.

'However, there is no denying the sector's challenging revenue environment. Premium income has failed to meet expectations, suggesting that pricing remains under pressure. Investment income has also fallen for the fifth quarter in a row, reflecting the effects of exceptionally low bond yields.'

It was a rosier picture for investment management, with business volumes growing robustly over the three months, the fourth consecutive quarter they have done so. However, the survey revealed that growth is now predicted to ease and expectations in the sector are at their lowest since December 2011.

Paula Smith, PwC's asset management leaders, said: 'Investment managers are more optimistic due to strong improvement in revenues and profitability, with the latter increasing for the sixth consecutive quarter.  Firms continue to benefit from the comparative stability of financial markets, as well as the year-long recovery in equity values.

'Encouraged by this, investment managers continue to allow operating costs to climb, although the pace of growth appears to have slowed with employment levels being the highest since 2010.'

This article appeared in our July 2013 issue of The Actuary .
Click here to view this issue

You may also be interested in...

Excessive premium hikes 'not normal' says ABI head

The practice of hiking up customers’ premiums when they renew their insurance policies is not normal practice across the industry, the head of the Association of British Insurers has told a senior MP.
Monday 8th July 2013
Open-access content

Average car insurance premiums back below £700

Average quoted comprehensive motor insurance premiums fell by nearly 8% in the second quarter of 2013, according to the Confused.com/Towers Watson Car Insurance Price Index.
Wednesday 17th July 2013
Open-access content

Regulation reform again tops poll of insurers' concerns

Changes to the regulation of the insurance industry, including the introduction of the new Solvency II rules in Europe, represent the biggest current risk to firms, a survey by accountants PricewaterhouseCoopers has revealed.
Thursday 18th July 2013
Open-access content

Impact of G-SII status on credit ratings mixed, says S&P

There are mixed implications for the insurance firms that have been designated global systemically important insurers (G-SIIs), according to credit rating agency Standard & Poor’s.
Tuesday 23rd July 2013
Open-access content
2

Whiplash costs up 7%, say IFoA

The cost of whiplash injury claims to the insurance industry is continuing to increase, with a 7% hike in 2012 compared to the year before, research from the Institute and Faculty of Actuaries has revealed today.
Monday 1st July 2013
Open-access content
2

Government proposes insurance market for long-term care

A market for insurance to pay social care bills was put forward today by care minister Norman Lamb as he published detailed plans for how the £72,000 lifetime cap on care costs might work.
Thursday 18th July 2013
Open-access content

Latest from General Insurance

td

Brain power

The latest microchips mimic cerebral function. Smaller, faster and more efficient than their predecessors, they have the potential to save lives and help insurers, argues Amarnath Suggu
Wednesday 1st March 2023
Open-access content
bl

'Takaful' models of Islamic insurance

Ethical, varied and a growing market – ‘takaful’ Islamic insurance is worth knowing about, wherever you’re from and whatever your beliefs, says Ali Asghar Bhuriwala
Wednesday 1st February 2023
Open-access content
il

When 'human' isn't female

It was only last year that the first anatomically correct female crash test dummy was created. With so much data still based on the male perspective, are we truly meeting all consumer needs? Adél Drew discusses her thoughts, based on the book Invisible Women by Caroline Criado Perez
Wednesday 1st February 2023
Open-access content

Latest from July 2013

Tighten up whiplash accident claims, say MPs

Ministers should consider reducing the time limit for road accident insurance claims to help contain the effect of whiplash cases on premium prices, MPs have said.
Wednesday 31st July 2013
Open-access content

More employers register for automatic enrolment

Employers’ awareness of automatic enrolment for workplace pensions increased sharply during the spring, The Pensions Regulator has said.
Wednesday 31st July 2013
Open-access content

FTSE350 pension deficits barely dented by £35bn contributions

Top companies have ploughed over £35bn in their defined benefit pension schemes over the last three years but made little dent to their overall deficit levels, according to research published by Barnett Waddingham.
Monday 29th July 2013
Open-access content

Latest from no_opening_image

TPR publishes coronavirus guidance

The Pensions Regulator (TPR) has published guidance to help UK pension trustees, employers and administrators deal with the financial and regulatory risks posed by coronavirus.
Monday 23rd March 2020
Open-access content
web_p24_cat-and-fish_iStock-483454069.png

Sensitivity analysis: swimming lessons

Silvana Pesenti, Alberto Bettini, Pietro Millossovich and Andreas Tsanakas present their alternative approach to sensitivity analysis
Wednesday 4th March 2020
Open-access content
ta

IFoA adjudication panel: Mr Jack Wicks, student

On 30 October 2019 the Adjudication Panel considered an allegation of misconduct against Mr Jack Wicks (the respondent).
Friday 28th February 2020
Open-access content

Latest from 07

Tighten up whiplash accident claims, say MPs

Ministers should consider reducing the time limit for road accident insurance claims to help contain the effect of whiplash cases on premium prices, MPs have said.
Wednesday 31st July 2013
Open-access content

More employers register for automatic enrolment

Employers’ awareness of automatic enrolment for workplace pensions increased sharply during the spring, The Pensions Regulator has said.
Wednesday 31st July 2013
Open-access content

FTSE350 pension deficits barely dented by £35bn contributions

Top companies have ploughed over £35bn in their defined benefit pension schemes over the last three years but made little dent to their overall deficit levels, according to research published by Barnett Waddingham.
Monday 29th July 2013
Open-access content
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Exposure Management Analyst

London, England
£40000 - £50000 per annum
Reference
148639

Pricing - Casualty Actuary

London (Central)
£128K + bonus + benefits
Reference
148638

Reporting Contractor

Negotiable
Reference
148636
See all jobs »
 
 
 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ