Flight to quality expected

A flight to quality, rather than pressure on solvency margins, will be the main driver of rapid consolidation in the life and pensions industry over the next five years. According to Andrew Rear, senior manager, insurance, at financial consultants Oliver, Wyman & Co, concerns over the financial strength and staying power of providers will cause many consumers and intermediaries to gravitate to perceived high-quality, trusted brands. That will concentrate the life industry around a handful of powerful companies. The pace of consolidation will accelerate, with the top five players incre...