This month Royal Liver Assurance launched into the protection market. The move signals good news for...
This month Royal Liver Assurance launched into the protection market. The move signals good news for a sector that has seen a great deal of consolidation in recent years.
For some time, it seemed the protection market was facing a potential crisis. Acquisition and mergers became an industry staple as major players like General Accident, Commercial Union and Guardian were swallowed up to create bigger and larger brands, while other key players, such as Swiss Life, pulled out of the market.
However, it seems the tide is turning. The launch of Bright Grey into the protection market last year, marked a turning point for the sector. It seems the growing need for protection is causing insurers to look at the market and examine ways to find a solution. Royal Liver's arrival and AXA's expected entry later this year heightens this trend. For once it seems the number of protection providers is actually increasing.
Royal Liver is a welcome addition to the protection market and has entered with an interesting proposition. The first web-only protection company, the move highlights the growing trend towards online business in the market.
Protection providers have been shouting about the benefits of internet-based transactions for some time now, and while e-business initiatives have certainly been gaining ground, the move from Royal Liver is an industry first. While it is fantastic news that another insurer has entered the market, a web-only based provider speaks volumes about the direction the market is taking. And with more providers making moves to offer higher rates of commission on business submitted online, it is clear that technology is becoming increasingly integral to the protection market.
Angela Faherty, editor
