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Changing market could offer improved life insurance

Date: Mon, 20 Mar 2006

The continued globalisation of the UK life insurance market could benefit consumers, claims a major broker.

Simon Burgess of British Insurance believes that the possibility of a takeover of leading insurance company Prudential could lead to lower policy costs for those planning to purchase life insurance cover.

Britain's largest insurer, Aviva, has launched a £17 million bid for Prudential and has called on shareholders to assess the offer on an "informal" basis, despite the board's reject of the takeover. Aviva is keen to establish a business that would be able to compete with overseas rivals such as the French-owned company AXA.

Speaking to BBC Radio Five Live's 'Wake Up to Money' programme, Mr Burgess said: "The life insurance market is under constant pressure, prices are diminishing month on month. There are also new entrants to the market, and the supermarkets are now becoming very bullish in the consumer life insurance market."

He added: "So I actually think with the economies of scale that this merger will create if it goes ahead, will actually be beneficial for the consumer."


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