Suncorp group chief executive Patrick Snowball, the man who previously ran Aviva's UK operation, has warned life insurers they could die out unless they innovate and change.
In an exclusive interview with Incisive Media's Post, Mr Snowball - who left Aviva in 2007 - said: "I think fundamentally the problem in the UK is that the life insurance company per se is the dinosaur of the 21st century.
"The reason I say that is these firms are trying to sell 30 year products in a world where consumers want to access and switch, if not every year, then at least every five years."
Mr Snowball added: "Now [former Aviva Life, now Aviva UK CEO] Mark [Hodges] has done a great job in re-engineering Aviva Life, and it was the plan that he and I put in place three years ago which he has executed beautifully.
"But fundamentally as soon as you sell a product as a life insurance company it becomes a legacy. As soon as you change the product and tweak it, you have a legacy product sitting on the system that has got to be maintained for umpteen years, tying in long term capital."
Although reluctant to speak about his former employer Aviva, Mr Snowball described RSA's bid for the firm's general insurance business as "leftfield," adding: [RSA group CEO] Andy [Haste] is now is in the position that I could be in three years time [when my Suncorp contract expires], in that I hope to have done a successful turnaround, but what happens next?"
