July 2, 2019 09:30
In the event of Brexit hard, an output of the United Kingdom of the european Union without the agreement, the insurers would be more at risk of a downgrade in financial than their counterparts in life insurance.
This prediction is one of the firm’s Standard & Poor’s (S&P). It is based on the financial profile of the 15 largest insurers in the United Kingdom. His finding : the risk portfolio of life insurers in uk is much less at risk than that of property and casualty insurers.
Strong growth in annuities to provide for
Better still for the life insurers, even if the uk market is mature, they have still room for strong growth on the side of annuities. The analysts of S&P go so far as to affirm that there is only one other country in the world that has a profile too safe in life insurance : the Canada.
What is the disadvantage of the insurers compared with life insurers ? The risks that this industry covers are more exposed to damage, and in insurance for individuals and insurance companies.
The analysts of S&P say, however, bet that the Uk should not leave the european Union without an agreement, thus reducing the risk of a downgrade to the insurers. In the event of Brexit hard, its impacts would be felt in the short-term and long-term insurers.
The reduction in costs are advantageous
Another measure which is of benefit to the british insurers face the Brexit : they are all looking at how to reduce their costs, either by cutting staff, outsourcing certain functions or still looking at the possibilities of artificial intelligence and robotics to automate tasks. These gestures will enable insurers to achieve efficiencies over the years, believe analysts of S&P.
This phenomenon also ensures that the uk insurance market is in a phase of consolidation, which should continue. Since June 2018, S&P has identified 22 mergers and acquisitions in the realm of queen Elizabeth II.