That’s the main headline from research carried out for us by Milliman, and presented in the Future Visions 2022 report which is available exclusively to our Full and Associate Members.
Since 2019 we have commissioned Milliman to conduct an annual survey to track trends in the jurisdictions in which we have members, highlight issues, and stimulate further debate. This year’s 17-page Future Visions report provides analysis across four key areas – strategy, markets, regulatory and hot topics facing the industry.
The survey included a question that asked respondents which regions they thought provided the best opportunities for expansion. As you can see from the graphic below, there was a big bounce back regarding opinions about the UK since the 2021 survey.
The authors of the report speculate that the survey results about the UK could be related to the ongoing trend towards consolidation in the industry and – inevitably – Brexit.
Respondents were also asked to choose the most attractive jurisdictions for their sector, based on nine factors covering cost, regulatory, market access, security, reputation and tax issues. Ireland was the clear leader followed by a closely-ranked group of Luxembourg, the Isle of Man and Liechtenstein.
The Future Visions 2022 report concluded with the following insights:
- Dealing with the challenge of increased regulatory compliance is absorbing more costs and resources within insurers.
- Europe and Asia Pacific are still seen as attractive markets to the cross-border insurers, with the view of the UK market being more volatile given recent political changes.
- Conduct supervision will be a continuing focus for supervisors and, therefore,
insurers too. In particular, assessing and demonstrating value for money in insurance products is a growing consideration.
- As inflation starts to bite, insurers are looking to automation to solve quality and staff cost issues, but there is much more scope for development in this area.
- Unsurprisingly, consolidation is a trend that has not yet run its course.
AILO Members can request copies of the full report by emailing email@example.com
Or you can join us here to gain exclusive access to this and other analysis which is carried out throughout the year.
We must say a big thank you to Milliman – and especially Rob Frize (Senior Consultant at Milliman Dublin) – for the excellent work that went into producing the Future Visions 2022 report.