New research from EDM Group, the information management specialists, reveals both insurance executives and intermediaries believe their sector will enjoy good growth over the next three to five years. 44% of executives interviewed expect the insurance sector to grow by between 10.1% and 20% and only 3% expect it to contract (1).
One in three (35%) intermediaries (2) anticipates that the sector will grow by between 5.1% and 10% over this timeframe, with a further 19% anticipating growth of between10.1% and 15%. Only 5% expect the sector to contract between now and 2019.
When asked which segments of the insurance sector they expect to see the biggest growth over the next five years, both groups were heavily weighted towards life/critical illness, and health. For the insurance executives interviewed, 36% anticipates that the life/critical illness market will see the biggest growth between now and 2019, followed by 21% who said health insurance and the same percentage opted for car. For intermediaries, 47% said the health insurance sector would see the biggest growth, followed by 44% who said life/critical illness and 14% car.
Craig Campbell, Head of Insurance Sector at EDM Group, said: “insurance executives and intermediaries clearly have a very positive view on the outlook for the insurance sector over the next three to five years. To capitalise on the opportunities here, we expect to see a significant focus from insurers on improving their levels of efficiency and cutting costs, and this will include how they manage their information and data. For that reason, this is one of our biggest markets, and we expect its importance to us to increase in the coming months and years.”
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EDM Group currently generates around 10% of its revenue from the insurance sector but because of the huge challenges facing insurers with regards to information management, the firm is forecasting a dramatic increase over the next three years.
EDM Group provides companies with effective and efficient ways to manage the rapidly growing volumes of information flowing into and through their businesses every day. Clients include Legal & General, Friends Life, Bupa, Nationwide Building Society, Companies House, Lloyds Banking Group, Grant Thornton, Towers Watson, Ensign Pensions and numerous healthcare providers, including NHS Trusts and BMI hospitals.
(1) 43 insurance executives were surveyed online from 8th to 24th January, 2014.
(2) 112 insurance intermediaries were surveyed online from 8th to 24th January, 2014.