Whilst soft markets for Group Life, and Death in Service Pensions are ending, the trend for Group IP is towards reducing premiums although the Group Critical Illness market continues to grow, according to Canada life.
Paul Avis, marketing director of Canada Life Group, said 2013 will continue to be a challenge for insurers and advisers alike.
"The question of profit and earnings will be a key driver for all involved in the sector.
"Some segments are showing signs of recruitment and growth but this is still fairly limited and the bigger focus on market and profit growth has to be achieved by taking advantage of the wider environmental factors that drive customer behaviour.
"With the RDR there will inevitably be more adviser consolidation amongst top end consulting and employee benefits specialists.
"This has little impact on our market size and shape, as employers still have schemes that need support and will want to purchase group insurance products, but it could affect the structure of Sales teams and distribution models.
"For group risk specialists there may be a chance to provide outsourced services to non-specialists. This in turn could build into reciprocal, non-competing partnerships, as holistic advice becomes less popular as a business model."
He added that the impact of welfare reform has yet to be fully felt.
"As the Government continues and ultimately finalises its review of current claimants, leaving fewer people qualifying for state benefits, the profile and emotion surrounding, "what happens to me when I am off sick?" will increase and potentially lead to a greater demand for Group Income Protection from employees, " he said.
