LONDON, Sept. 21, 2017
/PRNewswire/ --
UK Protection Insurance 2017: Critical Illness & Income
Protection
Summary
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.
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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 -
- IP grew to 119,459 in contracts and 10.8% in premiums from
2015 to 2016.
- Standalone CII grew by 50.5% in contracts and £14.1m in
premiums from 2015 to 2016. The with-rider CII market is around 16
times larger than the standalone market.
- Legal & General dominates the CII market, holding a 25.4%
market share in 2016. LV= and Friends Life dominate the IP market,
with 27.3% and 23.1% shares respectively in 2016.
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.
Scope
- Income protection grew by 7.4% to 119,459 in contracts and
10.8% to £48.3m in premiums from 2015 to 2016.
- Standalone critical illness insurance grew by 50.5% to 28,751
in contracts and 47.3% to £14.1m in premiums from 2015 to
2016.
- Legal & General dominates the critical illness insurance
market, holding a 25.4% market share in 2016. LV= and Friends Life
dominate the income protection market, with 27.3% and 23.1% shares
respectively in 2016.
Reasons to buy
- Understand the barriers of uptake for critical illness and
income protection, and learn how to increase consumer
engagement.
- Explore how the distribution landscape is changing for these
products.
- Discover which providers lead the critical illness and income
protection markets.
- See how critical illness and income protection are forecast to
grow over the next five years.
Download the full report:
https://www.reportbuyer.com/product/5112611
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