Market Research Report
UK Protection Insurance 2017: Critical Illness & Income Protection
|Published by||GlobalData||Product code||379793|
|Published||Content info||58 Pages
Delivery time: 1-2 business days
|UK Protection Insurance 2017: Critical Illness & Income Protection|
|Published: September 11, 2017||Content info: 58 Pages||
Income Protection (IP) and Critical Illness insurance (CII) markets continued to grow in 2016. Their year-on-year percentage growth outstripped the total protection market, highlighting a growing market for illness- and injury-oriented products. However, together CII and IP still only account for less than 10% of the total protection market in terms of contracts and premiums.
The success of IP policies has been attributed to sales of short-term products where claims payouts are capped at duration of two years. The standalone CII market has doubled year on year but remains small, as the majority of CII contracts are sold as a rider product - mainly alongside a mortgage-related term policy.
Protection products remain complex, and are still sold and not bought, making advisors key to distribution. IP in particular is highly reliant on advisors, and this is not likely to change soon. Meanwhile, individuals are beginning to purchase CII independently online without advice, although advisors will remain key. To maintain market growth, providers and advisors must continue to build consumer engagement with these products.
Key findings include in this report -
Total protection market has reached a period of stability in the number of contracts, following a significant reduction (primarily in non-mortgage-related policies) from 2013 to 2014 after the introduction of the Retail Distribution Review (RDR). From 2015 to 2016 the total number of contracts in the protection market remained flat, only falling by 0.1% to 1.8 Million. The market also saw a fall in premiums due to the RDR, but these have now entered a new normal, increasing only by 2.0% from 2015 to 2016.
The report "UK Protection Insurance 2017: Critical Illness & Income Protection" discusses income protection and critical illness insurance, looking at market size with regards to changes in contracts and premiums, in addition to claims. It highlights the barriers to consumer engagement, how products are distributed, and the main market players and their propositions. It provides five-year forecasts of market size in premiums to 2021, and discusses how the market is likely to change as healthcare technology is developed.
Companies mentioned in this report: Legal & General, Aviva, Vitality, Friends Life, Royal London, LV=, AIG.