Insurance sector 'to grow significantly'
Published: 10 Jun 2014
The outlook for the insurance industry over the next few years is a positive one, according to new research, with the health insurance market in particular expected to show strong growth.
A study - conducted by information management firm EDM Group - quizzed over 100 brokers to gauge their views on the future of the sector.
It found that just over a third (35%) predicted increased revenues in the region of 5.1-10%. Almost one in five (19%) anticipated growth of between 10.1-15%.
Furthermore, only five per cent of respondents forecast the industry would contract over the next three to five years, signalling a significantly high level of confidence among professionals as a whole.
EDM also contacted 43 insurance executives to understand their view on the overall future of the sector, revealing that almost half (44%) expect it will grow by 10.1-20% between 2017 and 2019.
The prospects of the health insurance market appear to be particularly inspiring, with 47% of intermediaries anticipating it to experience the largest growth rate up to 2019. Meanwhile, 44% believed life/critical illness insurance would see the biggest increase in revenues. More than one in ten (14%) said car cover would benefit the most over the same time period.
Executives were of the view that health insurance would come second to life/critical illness products when it came to improving expansion rates over the next few years.
EDM Group's Head of Insurance Craig Campbell 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."
Mr Campbell noted of his own expectation that there will be a "significant focus" on improving efficiency levels and cost-cutting measures by insurers, with many implementing changes to how they manage their data.
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