UK Payment Industry Research report ,Discretionary asset management Market UK

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Exploding Mass Affluent Population in UK and its
impact on Insurance Industry Ken Research
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• Ken research announced recent publication on,
  "Targeting UK Mass Affluents with Insurance." The
  report explores the differing attitudes and
  insurance needs of higher affluence customers in
  comparison to the mass market. It explores the
  demographics of the group, the products they
  hold, and their purchasing preferences. It also
  highlights the leading providers for mass
  affluent, and discusses the opportunities and
  best ways providers can reach and engage with
  this customer group. It can be put to use my
  marketers to understand the differing needs of
  very affluent customers in comparison to the mass
  market and to improve customer engagement by
  recognizing what is most important to mass
  affluent customers and how insurers can adapt
  their products and services to meet their needs.
  It is a suitable solution to discover the top
  providers within the very affluent insurance
  market and thus, to explore the opportunities the
  mass affluent market provides in terms of
  insurance innovation.

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• The mass affluent represent an important target
  market for the retail banks, with several
  offering premium products and services designed
  specifically for this moderately wealthy
  demographic. The level of financial wealth held
  by UK households has increased by dramatic
  proportions in the last twenty years. Offering a
  premium or lower-entry private bank account not
  only helps to reach these more profitable
  individuals, but also acts as a useful gateway
  product, through which other products and
  services can be channelled. The mass affluent
  population in the UK is growing, meaning the
  demographic is an opportunity for providers
  selling personal insurance. Mass affluent are
  more likely to be male, have higher household
  incomes, and be married compared to retail
  customers. The assets of mass affluents are
  higher value, making their insurance needs more
  complex. They have different lifestyles compared
  to retail customers, meaning they also have
  different insurance needs. They travel abroad
  more often, and are more likely to own a second
  home, a car that requires specialist insurance,
  and high-value items that require additional
  cover.

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• The main reason for this marginal slow down in
  the rate of financial wealth accumulation is that
  we are not expecting another bull-run on the
  London stock market. However disposable income
  growth and savings rates are expected to remain
  as high as they have been in recent years. The
  factors determining wealth distribution world
  trade, labour market deregulation,
  self-employment, executive stocks and options,
  the technology entrepreneurs, taxation and
  attitudes to savings will in combination act to
  make the skew in wealth distribution more acute.
  Their impact will increase the share of wealth
  for the top twenty percent, but their effect will
  be less intense than it has been over the last
  five years. Private wealth is measured in the UK
  with perhaps more precision than virtually
  anywhere else in the world.

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• This is mainly because of the British affinity
  for home-ownership and private pensions, two
  industries that are closely regulated Londons
  importance as a world financial centre, another
  source of regulation and the efforts of the
  Inland Revenue Service in securing capital gains
  and inheritance taxes. However, UK citizens are
  not required to declare their wealth levels in
  the way that they have to reveal, on an annual
  basis, their personal incomes. For wealth itself
  is not directly taxed it is the income from
  wealth interest, dividends and profits from
  assets that are subject to income and capital
  gains taxes..
• The sources of financial wealth why the numbers
  of mass affluent have grown The distribution of
  wealth (in its broadest form) in the UK is mostly
  the result of wealth accumulation of previous
  generations. Tax structures and changes in the
  nature of employment may have affected the
  distribution at the margin, but much of the store
  of personal wealth has been inherited by its
  current owners. Pillars on which this population
  incremented were

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• The growth of the world economy is a vital engine
  of economic growth for the UK. The problems
  caused by the appreciation of sterlings value
  against the euro zone currencies since 1996 have
  emphasised the UKs dependence on the world
  economy for trade and job creation. The last
  decade had seen continual openings of foreign
  markets, from eastern Europe to China, as more of
  the world has adopted capitalist new consumers
  and lower cost production facilities, have
  encouraged capital mobility on an unprecedented
  scale.

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• Labour market de-regulation
• Another source that has acted to heighten the
  skew in the distribution of wealth is the gradual
  de-regulation of employment in the UK during the
  1980s. While employment law has certainly become
  more complicated over the last decade, especially
  for small companies, there has been increased
  freedom for companies to adjust their workforce
  size and location and to retain and reward highly
  skilled workers. This trend has mirrored the
  decline in influence and membership of trade
  unions and other occupational associations.
• Self-employment
• Self-employment has been important to financial
  wealth creation because it not only brings about
  greater financial control for individuals who
  have to provide accounts of their business but
  also encourages more detailed financial planning
  because of the inherent risks involved in
  self-employment
• The spread of executive stocks and options
• The use of stocks and options to remunerate and
  retain staff has increased rapidly during the
  last five years. The aim is obviously to tie key
  staff members into the medium term business plan,
  to motivate them and perhaps to defer their full
  remuneration until profitability of the business
  venture has been confirmed. Government organised
  share-save schemes, giving tax allowances for
  employee share-buying over time, has undoubtedly
  encouraged this form of remuneration.

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• The penetration of personal insurance products is
  higher among mass affluents than retail
  customers, and they pay higher premiums. In the
  UK, mass affluent individuals tend to be more
  mature, although they are not exclusively. This
  wealthier segment of the population comprises a
  diverse range of people from young entrepreneurs
  and high-income earners, seeking to build their
  wealth, to income-poor but asset-rich retirees,
  who are seeking to maintain a good standard of
  living in retirement and/or tax-efficient ways of
  passing on wealth.

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Topics covered in The report

• HNW market research Report UK
• UK high net worth individuals Population
• UK money remittance industry report
• UK Payment Industry Research report
• Discretionary asset management Market UK
• UK wealth management market research report
• UK Insurance Industry Research report
• Europe Insurance industry research
• Targeting UK Mass Affluents with Insurance report

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For more coverage click on the link below

• https//www.kenresearch.com/banking-financial-serv
  ices-and-insurance/insurance/targeting-uk-mass-aff
  luents-with-insurance/80164-93.html
•  
•  
• Related links
• Personal Accident and Health Insurance in
  Hungary, Key Trends and Opportunities to 2020
• Non-Life Insurance in Hungary, Key Trends and
  Opportunities to 2020 
•  
• Contact Ken ResearchAnkur Gupta, Head
  Marketing Communicationsquery_at_kenresearch.com
• 91-124-4230204www.kenresearch.com

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