OLDWICK, N.J.–(BUSINESS WIRE)–In this episode of AM BestTV, Tony Silverman, associate director of analytics, AM Best, said that despite possible complications from Brexit, the market segment outlook for the U.K. life insurance sector remains stable. Click on http://www.ambest.com/v.asp?v=U.K.life419 to view the entire program.
Silverman discussed AM Bestās reasons for maintaining a stable outlook on the U.K. life insurance sector.
āThe U.K. life sector has actually quite a positive outlook on its two main products, which are annuities and bulk annuities, as well as the defined contribution pensioned market,ā said Silverman. āHowever, there are Brexit-related investment risks. There are problematic aspects of solvency too, which could perhaps be tackled on a U.K.-specific basis after Brexit.ā
Silverman spoke further about the U.K. life sectorās focus on pensions.
āThe U.K. life sector used to be involved with non-pension savings in the form of investment bonds with profit product. Now it is focused on the pension segment. There is a degree of fragility to that business model. There is the regulatory risk that goes with pensions. Pension regulation is something that is subject to political influence. Additionally, AM Best sees a likelihood of increased investment risk with pensions going forward.ā
To access a copy of this market segment report, titled, āMarket Segment Outlook: U.K. Lifeā, visit http://www3.ambest.com/bestweek/purchase.asp?record_code=284219.
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