Despite many signs earlier this year that the life insurance industry was weathering the credit crunch, the Confederation of British Industry reportedly claims that this sector is actually in a bad way.
A study conducted by PriceWaterhouseCoopers indicates that the life insurance industry has taken a hit in volume of business, income and profitability. Financial Services have been affected across all sectors.
Insurance leader at PWC, Andrew Kail, reportedly commented: " Life insurers have reported their steepest decline yet for profitability. New business is expected to continue to fall, investment business is under threat from perceived market volatility and demand for protection products is being affected by the slowdown in the housing market . The slowdown is putting pressure on the sector's own investment and capital plans. Life insurers intend to commit less capital to IT projects and look likely to reduce headcount."




