Resolution is combining Friends Provident, Axa Life and Bupa Health Assurance into Friends Life soon and is not now expected to actively seek other UK buys, although it may consider purchases if offered them.
The cost of life insurance is now relatively cheap as people are living far longer due to improvements in medical research and the availability of life prolonging drugs. Many policies are now available for as little as the price of a restaurant meal once a month or a daily coffee. The costs to insure are now at historical lows.
Competition in life assurance is still fierce, and although it will anger diehard intermediaries who believe that life insurance has to be actively sold and with advice, the new company is expected to sell simple term life products direct and online.
Life insurance news: 25 March 2011