According to a survey conducted by Pension Institute, life insurance is bound to undergo profound mutation in the coming years. The reforms undertaken in 2012 in the area of retirement will engulf the British companies in the so-called scenario of “self-enrolment”.
This system consists of the automatic affiliation of those companies in corporate pension funds. According to the consultancy firm, these operations, likely to end by 2018, will trigger a drastic fall in the number of life insurers in United Kingdom by 2020. This class of business is poised to undergo a period of substantial portfolio consolidation. The institution of these reforms provides wage earners with the possibility to stay in the basic scheme without being exclusively dependent on it.