Bridging the gap between life cover required and life cover actually in place on both the individual and corporate level will be hugely difficult, according to findings of research into the issue published by Swiss Re.
The gap in UK individual life cover is now estimated at £2.2trn, to which is added a corporate life protection gap of £300bn, and an income protection gap of “at least” £150bn, Swiss Re says. Greater regulatory costs, unwillingness to pay for advice, and the fact more people are in employment are all reasons cited for the trend towards individuals obtaining less insurance than they ought to. Selling more life cover will not be easy, the research suggests. Insurers face the problem of raising the additional £7.5bn in capital required to take on the amount of new business needed to ...
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