Paul Hill's tip of the week: Profit from changes in the insurance industry

Over the past ten years, the insurance industry has experienced seismic change. And one company is well-placed to capitalise on the new trend for outsourcing.

Over the past ten years, the insurance industry has experienced seismic change. Markets have been deregulated and new technology, the internet in particular, has led to greater price transparency and more competition. Canny consumers can save literally hundreds of pounds by going online to find the cheapest cover. With lower barriers to entry, new operators such as banks, supermarkets and low-cost providers such as Esure have flooded the market, pushing prices down. Existing providers have been faced with the harsh reality of shaping up or going bust. While some have gone to the wall, most have survived by slashing costs and outsourcing non-core activities. Thousands of UK jobs have been lost as many insurers have upgraded their software and outsourced the whole process of claims management to specialists, such as this week's tip:

Tip of the Week: The Innovation Group (TIG, 32.75p), tipped as a BUY by ABN Amro and Altium Securities

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Paul gained a degree in electrical engineering and went on to qualify as a chartered management accountant. He has extensive corporate finance and investment experience and is a member of the Securities Institute.

Over the past 16 years Paul has held top-level financial management and M&A roles for blue-chip companies such as O2, GKN and Unilever. He is now director of his own capital investment and consultancy firm, PMH Capital Limited.

Paul is an expert at analysing companies in new, fast-growing markets, and is an extremely shrewd stock-picker.