Insurers and brokers have painted an optimistic picture for the sector, with a majority predicting strong growth over the next five years and a surge in the prospects of life/critical illness and health insurance lines.
According to research from EDM Group, almost half (44%) of executives expect the insurance sector to grow by between 10.1% and 20% and only 3% expect it to contract (1).
One in three (35%) intermediaries (2) anticipate that the sector will grow by between 5.1% and 10% over this time frame, with a further 19% anticipating growth of between 10.1% and 15%. Only 5% said they expect the sector to contract between now and 2019.
When asked which segments of the insurance sector they expect to see the biggest growth over the next five years, both survey groups
were heavily weighted towards life/critical illness, and health. For the insurance executives interviewed, 36% anticipated that the life/critical illness market will see the biggest growth between now and 2019, followed by 21% who said health insurance and the same percentage who suggested motor would be the strongest performer.
For intermediaries, 47% said the health insurance sector would see the biggest growth, followed by 44% who said life/critical illness and 14% motor.
Craig Campbell, Head of Insurance Sector at EDM Group, said: “insurance executives and intermediaries clearly have a very positive view on the outlook for the insurance sector over the next three to five years. To capitalise on the opportunities here, we expect to see a significant focus from insurers on improving their levels of efficiency and cutting costs, and this will include how they manage their information and data. For that reason, this is one of our biggest markets, and we expect its importance to us to increase in the coming months and years.”
(1) 43 insurance executives were surveyed online from 8th to 24th January, 2014.
(2) 112 insurance intermediaries were surveyed online from 8th to 24th January, 2014.