According to a Survey, Insurers Are Becoming More Optimistic

According to the quarterly report published by the Confederation of British Industry, the British financial services sector might be facing better future.
As we know, both income and profitability were declining up to the month of June, but despite this fact there were signs of easing. A study shows that for the first time in two years people became optimistic about the situation in business in whole.
Among the most optimistic companies were insurance companies, where life insurers had the best results in sentiment in five years.
The reasons for the more optimistic views include rises in the equity markets and some good news on the property market.
Still, there is no real evidence that business recovered completely, so the companies do everything to reduce costs and to keep and attract their clients.
Actually, there was even a fall in business volumes and profits during the past three months, but general insurers don’t stop to believe in positive outlook.
The report, prepared in partnership with PricewaterhouseCoopers (PwC) says that many companies failed to fulfill their plans of increasing recruitment. Moreover, some general insurers suppose that profitability is going to fall because of possible increase in the cost of claims.
During the period of the survey, insurance brokers had their business growing, but at a slower pace. However, those brokers consider that the increase in profitability will accelerate soon.
Banking sector also believes that the volumes will rise during the third quarter of the year, but building societies are not that optimistic as they wait only business stabilization.
The most pessimistic are securities traders and investment managers who predict short life to all recent improvements and they think volumes are going to fall further during the next quarter.