Investors facing difficult future

Investors will face a difficult investment climate over the next 18 months, the annual general meeting and conference of the Professional Insurance Brokers Association (PIBA) was told yesterday.

Mr Jim Power, Friends First chief economist, said the difficult times for the investment business were not likely to get much easier anytime soon.

Friends First, which sponsored the conference, has signed a new agreement with PIBA, which represents 700 intermediaries.

Mr Power said the challenges ahead were "immense" due to low interest rates, loss of confidence in equity markets and a property cycle that was very advanced and possibly vulnerable to a setback.

"It looks likely that global interest rates will remain at current low levels over the next 12 months at least and on a three-year view it is difficult to see much upside potential," Mr Power said.

The Minister of State for Labour Affairs, Mr Fahey, said the Department of Finance would begin the consultation process on an EU directive on insurance mediation in the coming months.

The directive, to be in force by January 2005, allows brokers to offer their services in the rest of the EU. Consumers should "reap the benefits" from increased competition, Mr Fahey said.