By Rob Starr, Content Manager, Big4.com
The year end review of the issues facing the insurance industry from some of the relevant PwC partners are as follows:
“One of the biggest disappointments of 2012? The push back in the IFRS Phase II timeline along with the further delays to Solvency II,” said Brian Purves, partner, PwC. “In 2013, the industry will continue to suffer from a lack of consistency in how much capital it has to hold and how it explains it to its business to shareholders. That is damaging for the sector, making it very difficult for anyone to invest and continues to keep the cost of capital for the industry high.”
Gavin Philips is another partner who said that the Lloyd’s market goes into 2013 in good heart, but further rate rises in certain classes would undoubtedly further improve the market mood.
“This year has seen a wave of activity in the life insurance sector in the run up to Retail Distribution Review (RDR),” said Philippe Guijarro, partner, PwC.“For life insurers, substantial delay in Solvency II and the implications of the imminent changes in the UK tax regime have both been a constant theme of 2012.Life insurers hope 2013 will be a more stable year, although the regulatory changes will be working through the sector.”