Insurance brokers have reported business volumes falls and disappointing expectations of continued growth in the industry,according to the PwC / CBI quarterly Financial Services Survey on Insurance.
Life insurers however have reported strong growth in business volumes and incomes values that have lifted profitability.
Jonathan Howe, UK insurance leader at PwC, said: "Life insurers report a huge upswing in sentiment. Buoyed by strong performance in the run up to retail distribution review (RDR) implementation, overall survey results represents the sector's most confident response in more than three years.
"Life insurers' mood has apparently been boosted by a strong quarter for business, not to mention a marked and very welcome reported increase in profitability. The sense of optimism may also reflect more intangible factors, such as relief at the delay of Solvency II."
Insurers did not expect a pick-up in merger and acquisition deals this year despite it being the subject of considerable debate in the industry.
