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Daily Insurance Industry News
Monday 22nd of January 2018
January 27, 2012

ABI chief defines insurance industry “new normal”

by Gill Montia

Story link: ABI chief defines insurance industry “new normal”

The Association of British Insurers’ (ABI) director general, Otto Thoresen, has set out the “new normal” for the UK insurance industry.

Speaking yesterday at the Insurance Institute of London, Mr Thoresen outlined three core shifts that the industry needs to accept, beginning with globalisation and the “rising star” of the economies of the Far East (China in particular).

Next came debt, which the director general described as the “developed world’s enemy”, pointing out that the UK alone can expect to see at least seven consecutive years of spending cuts as it struggles to reduce the national debt.

Following on from the economic indicators of the new normal, Mr Thoresen spoke about global warming and global ageing.

In summary, climate change is affecting the timing and severity of natural catastrophe risks across the globe and longer living is the biggest threat to Britain’s long term fiscal sustainability – potentially pushing public spending on pensions, health and social care, up by over 5% of GDP, or £80 billion in today’s terms.

Finally, Mr Thoresen warned: “In our new normal the gap between rich and poor is keenly felt; and was perhaps no more vividly brought to our doorsteps than during last summer’s riots.”

He added: “We have the chance to redefine our relationship with our customers by helping them make good choices at a time when it is ever more important for them to plan and protect themselves.”

 

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