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96764
Growth in UK life insurance market
April 23, 2010
By Rachel Constantine

The first three months of 2010 saw a steady growth in the UK life insurance market, a new study has found.

Recent research conducted by the Confederation of British Industry indicated that there could be increased demand for such policies during the forthcoming quarter.

According to the findings, life insurance companies are increasingly tapping into international markets, a development which is significantly boosting their profits.

With more life assurance products now readily available, brokers reported stable growth for the fifth consecutive quarter, and have largely avoided any substantial drop in business.

However, Andrew Kail, UK insurance leader for PricewaterhouseCoopers, said the current financial climate could interrupt the flow of continued growth.

"The run of confidence insurers have enjoyed for the past five quarters will be more difficult to sustain. The potential increase in the cost of claims, weaker investment returns and the lack of rate hardening has driven the more gloomy short-term outlook," he commented.

Insurance company Aviva recently called for more women to take out life insurance, after a survey by the firm revealed a dramatic increase in the number of females becoming the main earner for their household.

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