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
  • October 2013
10

Insurance sector upbeat about future prospects

Open-access content Monday 7th October 2013 — updated 5.13pm, Wednesday 29th April 2020

Optimism in the UK insurance sector increased in the three months to September, according to a poll

The latest CBI and PricewaterhouseCoopers Financial Services Survey found that the entire financial services sector is now more upbeat about its overall business situation than it has been for almost 17 years.

Jonathan Howe, PwC's UK insurance leader, said life insurers saw the strongest growth in optimism for three quarters. This affected business volumes, which quickly rose over the same time period, after declining for two quarters. However, the survey found that the level of business was still judged to be below normal.

'With pricing power squeezed, profits fell, but life insurers expect a return to growth in profits next quarter, supported by predictions of growing premium and investment income,' stated the survey. 

Howe explained that the industry was showing strong signs of recovery compared to the low profitability concerns of previous quarters.

'A rapid increase in business volumes is reflective of the increased confidence amongst life insurers, bolstered by predictions of growing premium and investment income,' Howe said. 

'The search for growth opportunities is still continuing, with investment in new technologies expected to increase.'

As such employment in life insurance also grew and is expected to rise further. The report noted that recruitment was driven by two key factors: regulation and strategic change.

The general insurance sector saw a modest improvement this quarter, while profitability rose at its fastest pace since March 2008 and business volumes showed a second successive quarter of growth. 

'The sector saw more positive results in the higher fee and premium income, alongside a fall in costs,' he said. 

However, general insurers are faced with mixed outlooks for the next quarter, said Howe. 

General insurers were mildly more optimistic, driven by strong growth in business volumes. Therefore, an improvement in business demand is expected during the next quarter, but caution remains over predictions of a future rise in compliance and claim costs.

'The increasing requirements of the new regulator [the Financial Conduct Authority] pushes the conduct agenda back to the top of board's priority list,' added Howe. 'The sector should use this as a reminder of the need to focus on changing customer needs and the opportunity that this brings.'

Meanwhile, optimism among insurance brokers rose slightly and business volumes exceeded expectations. Profitability increased at its fastest pace since March 2011.

'Insurance brokers expect robust growth in volumes and profitability next quarter,' the report added. 

This article appeared in our October 2013 issue of The Actuary.
Click here to view this issue
Filed in
10
Topics
General Insurance

You might also like...

Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

New Fast-Growing Team - Actuarial Systems Development

London (Greater)
Excellent Salary Package
Reference
143762

Actuarial Pension Consultant – Scotland/Remote – Up to £90,000 plus bonus

Edinburgh / Glasgow / Remote working
Up to £90,000 + Bonus
Reference
143761

Part Qualified Pensions Actuary– Specialised Pensions Consultancy - Scotland/Remote - Up to £70,000

Edinburgh / Glasgow / Remote working
Up to £70,000 + Bonus
Reference
143760
See all jobs »
 
 

Today's top reads

 
 

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