The $4 billion wholesale life market is at a tipping point between cost and opportunity, according to a Rice Warner report.

The sector faces pressure from increasing claims and price compression from intense competition and product definitions.

But there are opportunities for providers, because participation is low in some sectors.

Rice Warner Head of Wealth Management Richard Weatherhead says price rises are vital to make the industry more sustainable, but average cover levels have done little more than keep pace with earnings.

“The proportion of members/employees taking up voluntary cover is broadly unchanged, so there remains significant opportunities to better meet insurance needs through customer and member engagement, including targeted offers of personal risk insurance advice.”