Whole Life Insurance in the UK, Key Trends and Opportunities to 2018

Date: November 20, 2014
Pages: 58
US$ 2,795.00
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Publisher: GlobalData
Report type: Strategic Report
Delivery: E-mail Delivery (PDF)
ID: W58066B28FAEN

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Whole Life Insurance in the UK, Key Trends and Opportunities to 2018
  • The report provides market analysis and insights into the UK whole life insurance business.
  • It also provides a snapshot of market size and dynamics.
  • Furthermore, the report discusses key drivers, distribution channels and the outlook for the market.
  • It also summarises deals, news and regulatory developments in the category.

This report is the result of extensive research into the whole life insurance market in the UK, covering the market dynamics, outlook and competitive landscape. It provides estimates of the market size and forecasts for the whole life insurance market, and discusses key products and distribution channels. The report also provides an overview of leading companies in the category, along with details of strategic initiatives undertaken.

  • This report provides a comprehensive analysis of the whole life insurance market in the UK.
  • It provides historical values for the UK whole life insurance market for the report’s 2009–2013 review period and forecast figures for the 2014–2018 forecast period.
  • It offers estimates of new business premiums collected in the market.
  • It provides an overview of market dynamics and drivers.
  • It profiles top whole life insurers in the UK and outlines key challenges facing them.
  • Gain an understanding of the UK whole life insurance market.
  • Learn about the performance of market drivers, distribution channels and market dynamics.
  • Explore types of products and key competitors in the category.
  • Find out more on key deals and recent developments in the market.
  • Whole life insurance remains a hard product to sell.
  • Providers expected to promote versatility of the whole life cover.
  • Advisers are finding it difficult to engage clients on protection.
  • Individually underwritten plans are expected to increase in popularity.
  • Premium growth is expected to settle at 1.6% by 2018.

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2.1 What is this Report About?
2.2 Definitions
2.3 Methodology


3.1 Market Size
  3.1.1 UK long-term protection market, new regular business premiums by category
  3.1.2 Whole life insurance new regular business premiums by product
  3.1.3 Non-profit whole life insurance
  3.1.4 With-profits whole life insurance
  3.1.5 Linked whole life insurance
  3.1.6 UK life single-premium new business
3.2 Market Drivers
3.3 Market Outlook
3.4 Distribution Channels


4.1 Review – The Best Performers of 2013
4.2 Whole Life Insurance – SWOT Analysis


5.1 Aegon UK Launches IHT-Focused Whole of Life Policy
5.2 Family Investments and Engage Mutual to Merge
5.3 Zurich Launches Whole of Life Cover Online
5.4 Engage Mutual Over-50s Customers to Claim for Terminal Illnesses
5.5 Skandia Enhances Life Cover for IHT Planning
5.6 Legal & General Overhauls Underwriting Processes
5.7 LV= Enhances Whole of Life Cover


6.1 Regulatory Changes
  6.1.1 Risk selection by gender has been outlawed
  6.1.2 Retail Distribution Review (RDR)
  6.1.3 Inheritance tax
  6.1.4 Solvency II


7.1 Real GDP Growth
7.2 Demographics
7.3 Labor Market
7.4 Inheritance Tax
7.5 GDP per Capita and Household Disposable Income


8.1 Axa UK Plc – Company Overview
  8.1.1 Axa UK Plc – key facts
  8.1.2 Axa UK Plc – main products
  8.1.3 Axa UK Plc – main competitors
  8.1.4 Axa UK Plc – key employees
8.2 Aviva Plc – Company Overview
  8.2.1 Aviva Plc – key facts
  8.2.2 Aviva Plc – main products
  8.2.3 Aviva Plc – main competitors
  8.2.4 Aviva Plc – key employees
8.3 Engage Mutual Assurance – Company Overview
  8.3.1 Engage Mutual Assurance – key facts
  8.3.2 Engage Mutual Assurance – main products
  8.3.3 Engage Mutual Assurance – main competitors
  8.3.4 Engage Mutual Assurance – key employees
8.4 Legal & General Group Plc – Company Overview
  8.4.1 Legal & General Group Plc – key facts
  8.4.2 Legal & General Group Plc – main products
  8.4.3 Legal & General Group Plc – main competitors
  8.4.4 Legal & General Group Plc – key employees
8.5 Liverpool Victoria Group – Company Overview
  8.5.1 Liverpool Victoria Group – key facts
  8.5.2 Liverpool Victoria Group – main products
  8.5.3 Liverpool Victoria Group – main competitors
  8.5.4 Liverpool Victoria Group – key employees
8.6 Lloyds Banking Group Plc – Company Overview
  8.6.1 Lloyds Banking Group Plc – key facts
  8.6.1 Lloyds Banking Group Plc – main products
  8.6.2 Lloyds Banking Group Plc – main competitors
  8.6.3 Lloyds Banking Group PLC – key employees
8.7 Old Mutual Plc – Company Overview
  8.7.1 Old Mutual Plc – key facts
  8.7.2 Old Mutual Plc – main products
  8.7.3 Old Mutual Plc – main competitors
  8.7.4 Old Mutual Plc – key employees
8.8 Prudential Plc – Company Overview
  8.8.1 Prudential Plc – key facts
  8.8.2 Prudential Plc – main products
  8.8.3 Prudential Plc – main competitors
  8.8.4 Prudential Plc – key employees
8.9 The Royal London Group – Company Overview
  8.9.1 The Royal London Group – key facts
  8.9.2 The Royal London Group – main products
  8.9.3 The Royal London Group – main competitors
  8.9.4 The Royal London Group – key employees
8.10 Wesleyan Assurance Society – Company Overview
  8.10.1 Wesleyan Assurance Society – key facts
  8.10.2 Wesleyan Assurance Society – main products
  8.10.3 Wesleyan Assurance Society – main competitors
  8.10.4 Wesleyan Assurance Society – key employees


9.1 Review Period: 2009–2013
9.2 Forecast Period: 2014–2018


10.1 Methodology
10.2 Contact Timetric
10.3 About Timetric
10.4 Timetric’s Services
10.5 Disclaimer


Figure 1: UK Whole Life Insurance – Total New Regular Business Premiums (GBP Million), 2009–2013
Figure 2: UK Long-Term Protection Market – Total New Regular Business Premiums by Category (GBP Million), 2009–2013
Figure 3: UK Whole Life Insurance – New Regular Business Premiums by Product (GBP Million), 2009?2013
Figure 4: UK Non-Profit Whole Life Insurance – New Regular Business Premiums (GBP Million), 2009?2013
Figure 5: UK With-Profits Whole Life Insurance – New Regular Business Premiums (GBP Million), 2009?2013
Figure 6: UK Linked Whole Life Insurance – New Regular Business Premiums (GBP Million), 2009?2013
Figure 7: UK Life Single-Premium New Business (GBP Million), 2009?2013
Figure 8: UK Average Cost of Dying (GBP), 2007?2014
Figure 9: UK Whole Life Insurance – Total New Regular Business Premiums (GBP Million), 2014–2018
Figure 10: UK Commissions Paid by Life Insurers (GBP Million), 2009?2013
Figure 11: UK Market Shares of the Top 10 Whole Life Insurance Providers (%), 2013
Figure 12: The UK’s Insurance Regulatory Framework
Figure 13: UK Real GDP (Billion) and Quarter-on-Quarter Growth (%), 2007–2014
Figure 14: UK Growing and Aging Population (Years), 1995–2013
Figure 15: UK Population Aged Over 65 Years (%), 2007–2018
Figure 16: UK Overall Life Expectancy (Years), 1995–2018
Figure 17: UK Employment and Unemployment Rates (%), 2006–2014
Figure 18: UK Average Earnings and CPI Annual Growth Rates (%), 2007–2014
Figure 19: UK Annual House Prices – Rates of Change, All Dwellings (%), January 2004–July 2014
Figure 20: UK Share of Deaths Subject to IHT (%), 2013/2014–2018/2019
Figure 21: UK Improving Living Standards (GBP), 1997–2013


Axa UK Plc
Aviva Plc
Engage Mutual Assurance
Legal & General Group Plc
Liverpool Victoria Group
Lloyds Banking Group Plc
Old Mutual Plc
Prudential Plc
The Royal London Group
Wesleyan Assurance Society

Gross written premiums in the UK’s whole life insurance category fell by 57% between 2007 and 2012, although gained momentum in 2010, and resumed growth at 8% in 2012. The market is dominated by unit-linked products, while the popularity of unitized-with-profits and guaranteed acceptance plans for the over 50s also improved 2010 and 2012. Whole life insurance penetration represents 1.6% of the country’s GDP, and has remained significantly below its pre-crisis levels. Whole life insurance density also fell sharply, totaling a value of GBP384.1 in 2012.

Gradual economic recovery, increasing life expectancy and rising disposable income are expected to promote the demand for whole life insurance products over the next few years. Continued macroeconomic uncertainty is likely to constrain growth in the category and life insurers will face competition from the banking and wealth management sector offering savings and investment alternatives. A strong return to growth is not expected, with premiums only expected to grow at a CAGR of 3.5% between 2013 and 2017. Adverse factors such as prolonged low interest rates and regulatory changes will also affect new business volumes in the segment.

Growth in claims has been restricted

While the recession led to a surge in claims in the non-life segment, claims in the non-life segment, claims in the life insurance segment fell sharply in 2009, declining by 36%. Nevertheless, in line with an increase in policy surrender rates, life claims consistently exceeded premiums over the last few years, resulting in high loss ratios across the segment.

Distribution channels are evolving

Insurance brokers are the main channel for distribution of life insurance products in the UK. However, independent financial advisers (IFAs) are expected to face increased pressure since the Retail Distribution Review (RDR) was introduced. RDR implies that advisors can no longer take commission on sales of retail investment products, including life insurance policies, and instead, will have to charge their clients directly. The role of low-cost channels in securing new business will grow significantly over the next few years, with e-commerce and direct marketing expected to further dominate the distribution of guaranteed acceptance plans.

Low interest rates continue to threaten investment returns and profitability

The operating environment for UK life insurers has remained challenging. The decline in equity and property markets severely affected the profitability of the life insurance segment. Although capital positions of UK life insurers have remained solid, low interest rates are likely to further depress the industry’s earnings, resulting in reduced new business margins and an increased focus of the companies on maximizing cash flows in their back book of business.

The material was prepared in August, 2013.


Table 1: Insurance Industry Definitions
Table 2: UK Whole Life Insurance – SWOT Analysis
Table 3: Axa UK Plc – Key Facts
Table 4: Axa UK Plc – Main Products
Table 5: Axa UK Plc – Key Employees
Table 6: Aviva Plc – Key Facts
Table 7: Aviva Plc – Main Products
Table 8: Aviva Plc – Key Employees
Table 9: Engage Mutual Assurance – Key Facts
Table 10: Engage Mutual Assurance – Main Products
Table 11: Engage Mutual Assurance – Key Employees
Table 12: Legal & General Group Plc – Key Facts
Table 13: Legal & General Group Plc – Main Products
Table 14: Legal & General Group Plc – Key Employees
Table 15: Liverpool Victoria Group – Key Facts
Table 16: Liverpool Victoria Group – Main Products
Table 17: Liverpool Victoria Group – Key Employees
Table 18: Lloyds Banking Group Plc – Key Facts
Table 19: Lloyds Banking Group Plc – Main Products
Table 20: Lloyds Banking Group Plc – Key Employees
Table 21: Old Mutual Plc – Key Facts
Table 22: Old Mutual Plc – Main Products
Table 23: Old Mutual Plc – Key Employees
Table 24: Prudential Plc – Key Facts
Table 25: Prudential Plc – Main Products
Table 26: Prudential Plc – Key Employees
Table 27: The Royal London Group – Key Facts
Table 28: The Royal London Group – Main Products
Table 29: The Royal London Group – Key Employees
Table 30: Wesleyan Assurance Society – Key Facts
Table 31: Wesleyan Assurance Society – Main Products
Table 32: Wesleyan Assurance Society – Key Employees
Table 33: UK Whole Life Insurance – Historical Statistics (GBP Thousand), 2009–2013
Table 34: UK Whole Life Insurance – Forecast Statistics (GBP Thousand), 2014–2018

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