E&Y report predicts non-life insurers will be hit by reduced incomes and jobs fears
The outlook for the insurance industry is set to get worse this year with sluggish growth continuing to impact creditor and consumer behaviour.
That is according to the Ernst & Young ITEM Club Outlook for financial services which also predicts that while life premiums are expected to remain fairly flat this year, growth should pick up to around 5% per annum by 2014/15, pushing gross life premiums to £155bn, above their pre-crisis peak, by 2015.
Demand for non-life insurance, however, will continue to be hit by downward pressure on disposable incomes and rising fears of unemployment. Non-life premiums will expand by just 0.9% this year and will remain below the £75bn peak in 2003 until after 2015, said the report.
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