More than half of the UK's leading life insurance companies believe that cost reduction will be the main factor driving the industry forward over the next two years, according to a recent survey from KPMG.
The findings of the survey by the Big 4 firm were revealed at the Institute of Economic Affairs' (IEA) 10th Anniversary Conference in London. They showed that most respondents valued cost reduction over structural organisation and operational efficiency.
Alterations to channel and distribution methods were seen as the second most important factor in the industry, the survey revealed.
Paul Bishop, partner and head of insurance advisory practice at KPMG, explained the results: "Over the last ten years we have seen considerable consolidation in the life insurance industry, be it big companies getting bigger, or smaller companies in aggregating.
"As a result of this activity companies are now focusing on their search for efficiency."
Because of this new search for efficiency the senior strata of the industry is looking inwards and devoting more time and resources to cost reduction, added Mr Bishop.
The IEA Conference also saw KPMG launch its new global insurance insights publication.
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