AM BestTV: U.K. Life Companies Aided by Annuity Market, Says AM Best Associate Director

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FOR IMMEDIATE RELEASE

OLDWICK - APRIL 11, 2019 01:49 PM (EDT)
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 Best’s reasons for maintaining a stable outlook on the U.K. life insurance sector.

“The 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,” said Silverman. “However, 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.”

Silverman spoke further about the U.K. life sector’s focus on pensions.

“The 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.”

To access a copy of this market segment report, titled, “Market Segment Outlook: U.K. Life”, visit http://www3.ambest.com/bestweek/purchase.asp?record_code=284219 .

Recent episodes of ^AM BestTV include:

• Negative Outlook on U.K. Non-Life Sector Based on Political Uncertainty, Performance, Says AM Best Senior Director: Catherine Thomas, senior director of analytics, AM Best, discusses the rating agency’s negative market segment outlook on the U.K. non-life sector, citing the need for improvements in technical performance and developments in regulatory and political issues: http://www.ambest.com/v.asp?v=U.K.nonlife319 .


• Legalized Cannabis Creates Insurance Concerns and Opportunities, Say AM Best Analysts: Josie Novak, associate analyst, and David Blades and Robert Raber, associate directors, all of AM Best, discuss how expanding legal use of cannabis is impacting personal and commercial lines of insurance coverage: http://www.ambest.com/v.asp?v=cannabisreport419 .


• Foreign Investment in China’s Life Sector Set to Rise, Says AM Best Senior Financial Analyst: James Chan, senior financial analyst, AM Best, said China’s move to raise limits on foreign ownership of insurance companies will benefit the country’s insurance industry, particularly the life insurance sector: http://www.ambest.com/v.asp?v=china419 .


• Insurance-Linked Securities Investors Become Cagier After Recent Catastrophe Losses, Says AM Best Senior Financial Analyst: Mariza Costa, senior financial analyst, AM Best, said 2017-2018 reinsurance losses broke a pattern of more regular returns and also stemmed from events that were not as well-modeled as more traditional perils: http://www.ambest.com/v.asp?v=costa319 .

^AM BestTV covers exclusive AM Best and insurance industry information and reports, targeted topics and key developments in the insurance, reinsurance and related sectors daily. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html . View ^AM BestTV episodes at http://www.ambest.tv .

AM Best is a global rating agency and information provider with a unique focus on the insurance industry.