As well as highlighting an expectation of continued heavy recruitment in the insurance sector, this survey by the CBI/PWC draws attention to the fact Brokers and Insurers are focusing their investment on the customer.
This is great news for the industry, however, let's hope it doesn't revert to a war on price, but that the focus remains on value and quality of cover.
Brokers continue to see pressure on top line growth and as a result are focusing on improving margins and efficiency... Investment in brand and marketing is increasing as brokers respond to consistently high levels of competition in the sector, following recent M&A activity. General insurers are beginning to focus less on improving the efficiency of their systems and are now concentrating on expanding capacity and winning new customers. Technology spend will continue to increase, as will investment in staff, with significant growth in employee numbers growing expected to continue. Life insurers increasingly see their main competition as coming from within their own sector. This is surprising, as many industry observers assumed that, following last year’s Pension Freedom reforms, life insurers would come under pressure from other financial institutions, such as wealth managers, asset managers, banks and ISA providers.