Market Research Reports - Ken Research Life Insurance in the UK Key Trends and Opportunit

Robo Advice in UK Insurance Sector – Another Move Towards Adoption of Advanced
Technology
UK life insurance market has witnessed a steady downfall over the past years. The life insurance
market is fairly stable in terms of premiums with the changes in distribution. Term distribution is
expected to progress from independent financial advisors (IFAs) and reflect the general
insurance market in UK. The policies are sold directly and through aggregators in the general
insurance market. Majority of the life policies in UK are already sold without advice. Robo-
advice and technology are introduced in this sector that will bridge the advice gap for less
affluent customers. Also, Retail Distribution Review (RDR) is introduced to streamline the
consumer journey of purchase protection products. The life insurance policies are becoming
more personalized to individual risk by using big data from wearables, with insurers developing
policies for specific risk groups. All the providers are guiding their customers to manage their
health by investing in diagnostic healthcare technology, launching wellbeing apps, and providing
customers with virtual GP services.
According to the research report “Life Insurance in the UK, Key Trends and Opportunities to
2020”, the life insurance market is dominated by very few key players. UK customers are more
confident making their own decisions and self-serving. The leading competitor Legal & General
holds the largest share in the life insurances followed by SunLife. Robo-advice offers consumers
solutions that help identify the advice products that are most suitable and bridge the advice gap
for less affluent individuals. The UK life insurance focuses on the major and closely related
product lines of term and whole of life insurance that broadly provide financial compensation in
the risk-measured event of death or severe health issues.
The leading companies in the UK’s life insurance are Legal & General, SunLife, Scottish
Friendly, Aviva, Royal London, Virgin Money, Post Office,AA Life Insurance, Aegon Life
Insurance, AIG Life Life Insurance, Aviva Life Insurance, Fortify Insurance Solutions Limited
Life Insurance, Legal & General Life Insurance, LV= Life Insurance, , NatWest Life Insurance,
Old Mutual Wealth Life Insurance, Royal Bank of Scotland Life Insurance, Royal London Life
Insurance, Scottish Widows Life Insurance, The Exeter Life Insurance, Ulster Bank Life
Insurance, VitalityLife Insurance, Zurich Life Insurance.
The life insurance industry created huge opportunities to become the retail interface between the
UK’s workforce, pensioners and their retirement savings. It was observed that the life insurance
sector will grow at a whooping rate in the next decade. Insurers who share this growth are huge
valuable businesses and will be offered with a long-term dividend. The average share prices
across the industry in the next decade would be 50% higher than today. The insurance companies
that best capture such opportunities will outperform in terms of volume and sales. Consumers are
focused on dividend growth as the main measure of long-term value.
The UK life insurance industry is the defensive, retreating from with profitable lines of business
in wealth management and unable to make strategic decisions in the face of legal and regulatory
uncertainty. The life insurance industry serves as a private sector component of the social
security system in UK, helping workers to save for their retirements, to manage their savings