The Retail Distribution Review has drastically reduced the number of IFAswho account for much of the life segments distribution. However, due to better quality of advice, and a reduction in mis-selling, consumer confidence is expected to improve, according to the Life Insurance in the UK, Key Trends and Opportunities to 2018 report, available in the Insurance Intelligence Center.

he UK insurance industry is one of the most mature in the world. The industry generated the largest gross written premium in Europe in 2012, and the third largest in the world after the US and Japan. However, like other developed Western and European nations, the Uk Financial Advisors industry was affected by the global financial crisis. The gross written premium rose from GBP198.3 billion (US$308.9 billion) in 2009 to GBP206.0 billion (US$320.0 billion) in 2013. The slow growth can also be attributed to slow economic growth, rising interest rates and property prices, and competent public healthcare system.

The country also recorded one of the highest insurance penetration levels at 12.2% in 2013. Life insurance was the largest segment, accounting for 69.3% of the total written premium. Following the financial and subsequent debt crisis, the segment recorded slow growth in demand from 2011. This was supported prominently by the group life insurance sub-segment, improved foreign trade dynamics generating written premiums from US and other countries, better access to credit, and rising salaries. The segment grew by a CAGR of 0.4% to reach GBP142.7 billion (US$221.7 billion).

Non-life was the second largest segment, accounting for 27.3% of gross written premium, followed by personal accident and health with the remaining 3.4%, or GBP56.3 billion (US$87.5 billion), driven by infrastructure development, passenger car sales, and exports.

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