Canada Life  

How Brexit could hurt the protection industry

How Brexit could hurt the protection industry

Brexit could prove to be a "double-edged sword" for the group insurance industry, Canada Life’s marketing director has claimed.

Paul Avis, marketing director at Canada Life Group Insurance, said the amount of uncertainty surrounding the UK's exit from the European Union is making businesses as well as people nervous and thus predicting its effect on the workforce with any accuracy impossible.

But Mr Avis said if Brexit were to go ahead next year a period of economic downturn seems likely, with a knock on effect for the protection industry.

He said: "Economic downturn always has a negative effect on an industry which provides insurance for employers, there may be less growth, wage stagnation or even simply a period of adjustment." 

However, Mr Avis said group insurance could prove to be beneficial to employers faced with a potential skills and labour shortage in the aftermath of Brexit.

Companies looking to hire or retain additions to their workforce will need to find a way to differentiate themselves in the jobs market if faced with an increased demand for employees, Mr Avis said.

He said: "With everyone required to offer a pension due to auto-enrolment, group insurance benefits are a low-cost addition to the perks package which, pitched correctly, are valued by many employees.

"Therefore we see a potential opportunity which could counterbalance the detrimental economic impact of leaving the EU for the group insurance industry."