But research reveals sector is expected to grow 5.7% over the next year
Insurance brokers and agents are still suffering from a drop off in revenues as a result of the 2009 recession, according to the latest research by IBISWorld.
The report found that the industry has failed to report positive growth over the last five years with revenue dropping by an estimated compound annual rate of 4.3%.
But the sector is expected to grow by 5.7% to £33.4bn in 2012-13, with demand for both life, and property and casualty lines the drivers as consumers build assets and free-up more disposable income over the next five years.
IBISWorld industry analyst Tim Stephen said: “There has been a resulting decrease in the need for workers’ compensation insurance, as it is determined by total employment. The demand for risk advisory services and commercial property and liability insurance also depends on aggregate economic activity.”
IBISWorld said the main reasons for any change in the performance of the industry were down to demand for insurance in both the private and commercial markets, the current pricing cycle and the industry’s ability to compete with the increasing number of alternative insurance distribution mediums.
The market research firm said demand for insurance was currently in the recovery stage and due to the realised investment losses by underwriters, premium prices would increase to enable underwriters to rebuild capital strength.
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