UK's life insurance outlook revised to stable

Written by Adam Cadle

22/04/2022

The UK’s life insurance segment outlook has been revised to stable from negative.

According to AM Best, strong opportunities exist for pension-related products, which continue to dominate the business mix of the segment. “The UK life segment is well-capitalised to fund medium-term expansion, and there are opportunities to tailor prudential regulation to the specifics of the sector following Brexit,” it said.

The report also noted that COVID-19 and Brexit-related economic uncertainty is subsiding, although inflation concerns persist, and that the UK economy is expected to recover with the removal of pandemic-related restrictions.

However, the potential burden on management from the implementation of IFRS 17 and the heightened geopolitical tensions that are increasing economic uncertainty and investment market volatility moderate the outlook.

Related Articles