There are reasons to expect strong growth in future protection markets, the Actuarial Profession has said.
Where now for British life insurance? was posed and debated by a panel of experts at the Actuarial Profession's life insurance conference in Edinburgh last week.
Chaired by Nigel Masters, President of the Institute of Actuaries, the panel looked at the long term future of the life and pensions industry.
While the panel acknowledged that the short term future was uncertain, they argued that as consumers will still need the protection afforded by pensions and life insurance, there are strong prospects for future growth.
Equally, the panel noted that, despite the recent economic turmoil, policy holders' protection plans and savings are relatively unscathed. The panel qualified this by examining the impact Solvency II will have on the industry, suggesting this may lead to a rise in premiums.
The panel concluded that the balance between protecting the customer whilst keeping insurance accessible for all should be maintained.
Chair of the discussion, Nigel Masters, said: "In general, life insurers have matched their assets and liabilities carefully and so have escaped the worst of the financial turmoil. However, the crisis has left interest rates low and this disadvantages pensions and insurance savers. The government should not ignore opportunities to return interest rates to more normal levels"
