Increasing Insurance Profitability in UK
The UK financial services sector has seen growth. For example business volumes grew across the sub-sectors, apart from banking, where volumes were stable, and finance houses, where they fell. In the life insurance, costs increased level while volumes advanced for the fifth, so allowing average cost per transaction to “fall down”.
Score of new business and premium income thrived and the overall combination of factors promoted profits further. General insurers informed “moderate” growth in volumes across all customer with costs stable, profitability advanced “moderately”, even though brokers saw a sharper increase.
The research also shows that general insurers and brokers aims to invest more in IT systems and marketing in the year ahead, with the intend of reaching new customers and providing new services. UK insurance leader, Mark Stephen, comments: “The next low growth rates and intense comparison in the UK market is forcing insurers to explore new growth avenues and continue to push for new international business.”
Mr. Stephen said that while headcount is on the up, companies are struggling to recruit the skilled managerial staff they need. Looking this condition, he expects the UK insurance to change shape in the coming quarter, as the result of this quarter’s natural disasters is felt.