United Kingdom (UK) Protection Insurance - Term Assurance Market

Abstract

This report provides an in-depth assessment of the term assurance market, looking at current and historical market size with regards to changes in contracts and premiums. It examines how term assurance products are distributed and highlights key changes in the competitive landscape, as well as the propositions of the key market players. The value of claims is also assessed. It provides five-year forecasts of market size in contracts and premiums to 2027. In addition, the report discusses how the market, distribution, and products offered are likely to change in the future, as well as the reasons for these changes.

The term assurance market declined in 2022, with premiums falling by 1.7% to GBP542.7 million and contracts falling 4% to 1.6 million. This was driven by mortgage-related term assurance contracts and premiums falling by 5.8% and 5.1% respectively due to a weak property market, as house prices continued rising in 2022. This made such purchases unaffordable for many individuals - especially with the cost-of-living crisis and inflation putting pressure on budgets. Innovations focus on simplifying and speeding up underwriting, as well as creating products that cater to individuals who are often not able to take out protection policies. One example is Bluezone targeting clients with Type 2 diabetes.

Scope

• Legal and General (L&G) remains the largest player in the term assurance market, with a market share of 29.6% in 2022.
• We forecast a decline in contracts for mortgage-related term in 2023. This will be due to high interest rates and the cost-of-living crisis, which have deterred individuals from taking out mortgages, thus impacting mortgage-related term take-up.
• By analyzing data and spotting trends, AI can increase the accuracy and effectiveness of term assurance underwriting. If incorporated with wearable devices, the real-time data generated can offer insights for customized policies and flexible pricing.

Reasons to Buy

• Examine the size of the term assurance market.
• Learn about the implications of regulation in the market.
• Understand the influence of a range of factors on growth.