The game of life

UK life insurers have faced a new regulatory regime in the aftermath of the guaranteed annuity options disaster, which has led them to rethink their use of derivatives. Nicholas Dunbar talks to four leading life companies

The UK life insurance industry is at a crossroads. With its roots in the Victorian culture of middle-class thrift, the sector dominates long-term saving in the UK. However, a combination of risk management blunders, mis-selling scandals and market events has put the sector on the back foot.

The UK government has been forced to introduce stringent risk-based regulatory capital rules. Meanwhile, the business environment has worsened, with customers increasingly sceptical about long-term savings