The EU, Asia Pacific and UK provide the best opportunities for expansion in the life industry, according to a report commissioned by the Association for International Life Offices (AILO).
The Future Visions 2022 report assessed the life industry across four areas – strategy, markets, regulatory and hot topics facing the industry.
The results showed a big bounce back regarding positive opinions about the UK since the 2021 survey. The authors of the report speculate that this could be related to the ongoing trend towards consolidation in the industry and – inevitably – Brexit.
Image: Best opportunities of life insurance expansion
Source: AILO
The Future Visions 2022 report concluded that:
- Dealing with the challenge of increased regulatory compliance is absorbing more costs and resources within insurers;
- Europe and Asia Pacific are still seen as attractive markets to the cross-border insurers, with the view of the UK market being more volatile given recent political changes;
- Conduct supervision will be a continuing focus. In particular, assessing and demonstrating value for money in insurance products is a growing consideration;
- As inflation starts to bite, insurers are looking at automation to solve quality and staff cost issues, but there is much more scope for development in this area; and
- Unsurprisingly, consolidation “is a trend that has not yet run its course”, the report said.
Bob Pain, AILO chief executive, added: “Throughout the year, we carry out or commission research which provides useful data and analysis that is available exclusively to our full and associate members. In that context, the Future Visions report is another example of the value we provide to our members and the industry generally.”
