United Kingdom (UK) Protection Insurance - Whole of Life Assurance

Abstract

In 2022, whole of life contracts fell for the third consecutive year, plummeting by 23.4% to 212,500. Premiums fell by 11.7% to GBP82.3 million. Guaranteed acceptance policies accounted for 86.3% of contracts in 2022, but only 51.4% of premiums. Most whole of life policies are sold without any kind of advice, with purchasing behavior increasingly moving towards online methods.

In terms of new business premiums, the whole of life market is set to record a compound annual growth rate (CAGR) of 0.6% to 2027. The number of contracts will increase by 1.7% over the same period, climbing from 212,500 in 2021 to 231,500 in 2027. Pressure on affordability provoked by the cost-of-living crisis will have an impact over the forecast period. Growth in contracts will primarily be driven by the guaranteed acceptance market as the crisis begins to fade, making cover more affordable for consumers.

Insurers should look to introduce more affordable or flexible policies that allow customers to miss monthly payments without having their contract canceled as a result. Scottish Friendly's new product is an example of adapting to evolving consumers needs. Innovations target simplifying underwriting for mental conditions, as well as creating products that cater to individuals who cannot make monthly payments due to the cost-of-living crisis. Partnerships may open up new development opportunities (such as access to a larger customer base) in the future.

SunLife was the top provider in 2022 due to its dominant position in the over-50s market. SunLife recorded a market share of 48.5%, which was an 8.1 percentage point (pp) decline from 2021. The market's top five providers controlled 83.1% of the market.

United Kingdom (UK) Protection Insurance - Whole of Life Assurance report provides an in-depth assessment of the whole of life market, looking at current and historical market size with regards to changes in contracts and premiums. It examines how whole of life products are distributed, and highlights key changes in the competitive landscape, as well as the propositions of the key players. The value of claims is also assessed. It provides five-year forecasts for market size by contracts and premiums to 2027 and discusses how the market, distribution, and products offered are likely to change in the future, as well as the reasons for these changes.

Scope

• SunLife was the top provider in 2022 due to its dominant position in the over-50s market. Meanwhile, the market's top five providers controlled 83.1% of the market.
• Innovations target simplifying underwriting for mental conditions, as well as creating products that cater to individuals who cannot make monthly payments due to the cost-of-living crisis.
• Further investments in digitalization should make whole of life products more accessible to tech-savvy individuals, potentially increasing the customer base.

Reasons to Buy

• Examine the size of the whole of life assurance market.
• Learn about key market drivers, including the impact of COVID-19 and the cost-of-living crisis.
• Discover which providers lead the way in the whole of life assurance space.
• Understand how whole of life assurance claims compare to other protection products.