Life market only for big and strong

Group chief executive of Friends First Mr Adrian Hegarty has predicted that small players will have no future in the life assurance market.

"There has been a dramatic change in the international economic and political environment this year. This is now beginning to impact on the Irish economy. The life assurance industry has not and will not escape the effects of these changes," he said.

Mr Hegarty warned that the high levels of growth and the multitude of opportunities that the industry enjoyed over recent years, were unlikely to continue. The top five companies in the life and pensions market currently account for approximately 80 per cent of gross premium income.

"This is a game for the big and the strong. Only companies which have got their cost base and competitive positioning right will prosper in this new environment," Mr Hegarty said.