DUBLIN, Oct. 13, 2020 /PRNewswire/ — The “Income Protection – United Kingdom (UK) Protection Insurance 2020″ report has been added to ResearchAndMarkets.com’s offering.

The report provides an in-depth assessment of the income protection market, looking at current and historical market sizes with regards to changes in contracts and premiums. It examines how income protection products are distributed and highlights key changes in the competitive landscape, as well as the proposition of the key market players. It provides five-year forecasts of contracts and premiums to 2024 and discusses how the market, distribution, and products offered are likely to change in the future, as well as the reasons for these changes.

The UK’s income protection market has grown strongly in recent years. Of the main protection products, income protection was the only product to register double-digit growth in premiums in 2019. Advised sales remain far more common than non-advised sales. However, the non-advice channel has experienced the fastest growth over recent years in terms of new business premiums.

Income protection providers face the prospects of increased claims due to job losses and increased illnesses as a result of COVID-19. As such, insurers have been forced to withdraw unemployment cover from the market and add exclusions to the wording of those policies that remain. The market is anticipated to plunge in 2020 before returning to growth. Financial hardship will highlight how vulnerable people are without a regular income, be it the result of unemployment or illness. This will generate strong demand for income protection products over the coming years.

Scope

  • New business premiums in the income protection market grew 18.3% to reach £65.5m in 2019, making it the only protection product to register double-digit growth by this measure.
  • Aviva strengthened its position as the largest provider of income protection insurance,

The S&P 500 (Index: SPX) closed the trading week ending Friday, 9 October 2020 at 3,477.13. That falls within three percent of its 3 September 2020 all-time record high close of 3,580.84.

The index rose, fell, and rose again with the prospects for another round of fiscal coronavirus stimulus coming from the U.S. government during the week. That action puts the level of the S&P 500 in the upper half of the latest redzone forecast range of the alternative futures chart – the latest update to which shows the projections of the dividend futures-based model through the end of 2020:

What the alternative futures chart doesn’t yet show is what could result for markets following the outcome of the U.S. elections. Here, if candidate Joe Biden wins, we would anticipate a partial repeat of 2012’s Great Dividend Raid.

That event was triggered in November 2012 after President Obama won re-election, which all but ensured an increase in federal income tax rates in 2013. Influential investors pulled ahead as much dividends as they could before the end of the year, which caused stock prices to rise sharply.

That would be the portion of the Great Dividend Raid we would reasonably expect to repeat during the fourth quarter of 2020 in the “Biden wins” scenario, because he has pledged to increase both personal and corporate income tax rates, and also the tax rates that apply upon both dividends and capital gains.

All these tax hikes would potentially devastate the market in 2021, but that would depend upon the actual tax changes that would be enacted. In 2013, President Obama’s fiscal cliff tax deal raised personal income tax rates, but lower tax rates held for dividends and capital gains, making it advantageous for influential investors to channel investment returns through them rather than

Stocks traded higher Friday morning as investors continued to mull chances of a virus-relief package amid mixed signals from officials as to what size of a proposal they might support.

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The S&P 500, Dow and Nasdaq each closed at their highest levels in more than five weeks by the end of the trading day on Thursday. All three major indices were on track to rise for a third straight day, and post weekly gains of at least 2.7%, as of Thursday’s closing levels.

Traders have closely monitored developments out of Washington to weigh whether a comprehensive or partial stimulus package might emerge before Election Day on Nov. 3, with additional relief measures viewed as a key tenet in encouraging the recovery in the virus-stricken economy. The Department of Labor’s weekly report on new jobless claims Thursday morning showed a worse than expected 840,000 individuals filed for first-time unemployment insurance benefits last week, though continuing claims dipped back below 11 million for the first time since late March.

House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin discussed further stimulus in an about 40-minute conversation Thursday afternoon, Pelosi’s spokesperson Drew Hammill said in a Twitter post.

Hammill reported that Mnuchin “made clear the President’s interest in reaching” an agreement on a comprehensive package, after Pelosi said earlier in the day that she would not support a standalone proposal aimed at providing aid only to airlines. However, the White House has offered mixed signals as to whether it would in fact support a broader legislative package, with Trump and White House spokespeople offering conflicting takes on their willingness to back a more comprehensive proposal over the past couple days.

“A compromise on a big stimulus package in Washington could potentially deliver another October surprise, but the odds are against it

U.S. raw steel production continues to leap on a weekly basis on an improvement in capacity utilization — a key metric in the steel industry. According to the latest American Iron and Steel Institute (“AISI”) weekly report, domestic raw steel production was 1,484,000 net tons for the week ending Oct 3, a 0.3% increase from production of 1,480,000 net tons for the week ending Sep 26. This follows a 2.4% rise on a weekly comparison basis for the week ending Sep 26.

However, the weekly production still trails that of a year ago. Production for the reported week was down 17.7% from 1,803,000 net tons registered for the same period a year ago.

Weekly Utilization Ticks Up

Capacity utilization was 66.6% for the reported week, rising from the previous week’s reading of 66.1%, indicating an improvement in activity. However, it was still well below the key 80% threshold — the minimum rate required for sustained profitability of the industry. Capability utilization rate for the reported week was down from 77.7% a year ago, AISI noted.

Notably, after remaining above the 80% the level in early 2020, capacity utilization rate tumbled to 51.1% in May — the lowest level in many years as the coronavirus pandemic decimated demand across major steel end-use markets. Utilization has started to pick up with a recovery in steel demand from the slump witnessed during the first half of 2020.

Meanwhile, by-region, output from Great Lakes rose roughly 1% on a weekly basis to 531,000 net tons in the reported week. Production in the Southern region slipped roughly 3% to 575,000 net tons in the reported week. Mills in the North East produced 144,000 net tons of raw steel, up around 13% from the previous week. The Midwest region produced 168,000 net tons of raw steel,

(Adds strategist comments and details throughout; updates
prices)

* Canadian dollar falls 0.2% against greenback

* Loonie touches its strongest intraday since Sept. 21 at
1.3242

* Canada’s exports, imports both fall in August

* Canadian bond yields ease across a flatter curve

By Fergal Smith

TORONTO, Oct 6 (Reuters) – The Canadian dollar weakened
against the greenback on Tuesday as investor hopes for U.S.
stimulus receded and data showed a slowdown in Canada’s
merchandise trade, with the loonie pulling back from an earlier
two-week high despite climbing oil prices.

U.S. stocks fell sharply after President Donald Trump said
he was calling off negotiations with Democratic lawmakers on
coronavirus relief legislation until after the November
election.

Canada sends about 75% of its exports to the United States,
including oil. U.S. crude oil futures settled 3.7% higher
at $40.67 a barrel, supported by U.S. supply disruptions caused
by an approaching hurricane in the Gulf of Mexico.

“Something that has been evident in the last month or so is
that the path of least resistance for USD-CAD has been higher,”
said Simon Harvey, FX market analyst for Monex Europe and Monex
Canada.

“This has continued in today’s session, evidenced by the
loonie following the broad G10 move lower against the (U.S.)
dollar on a day where WTI rallies back above $40,” Harvey said.

The Canadian dollar was trading 0.2% lower at 1.3290
to the greenback, or 75.24 U.S. cents. It touched its strongest
level since Sept. 21 at 1.3242 before turning lower.

Since the beginning of September, the loonie has fallen
nearly 2%.

Canada’s exports and imports both fell in August, hinting
that the momentum of the recovery from the COVID-19 crisis could
have slowed more than anticipated, data from Statistics Canada
showed.

Separate data showed that home sales in the area