The insurance industry has seen a significant increase in profitability, new figures have revealed.
According to the Financial Services Survey conducted by the
Confederation of British Industry and PricewaterhouseCoopers (PwC), the number of people taking out various kinds of insurance rose in the three months to September.
Life insurance profitability rose “rapidly for the third consecutive quarter” and was attributed to substantial growth in business volumes and fees, while general insurance increased “modestly”.
Furthermore, headcount growth in the insurance sector was found to be at its strongest for two and a half years.
PwC insurance partner Mark Stephen commented: “The general insurance sector has returned to profit for the first time in a year and a further rise is expected over the next three months.”
However, Mr Stephen also noted that premium rates are “under pressure”, with volumes of business in this area falling slightly.
“There are also concerns about competition from within the sector and as a result general insurers are shifting their focus away from international growth plans towards attracting domestic customers,” he added.
