UK Protection Insurance 2017: Term and Whole of Life

2017-06-27
Price :
Published : Jun-2017
No. of Pages : 49

UK life protection market for regular, individual premiums has entered a quiet period, with a new normal level of business of reduced contracts and premiums since 2013. With the protection market fairly stable in terms of premiums, the real story lies in changes in distribution. The non-advised channel is starting to gain momentum for term products that can be easily commoditized. Term distribution is expected to move away from independent financial advisors (IFAs) and begin to mirror the general insurance market, where policies are sold directly and through aggregators.

Over 50s whole of life policies are already sold without advice. Robo-advice and technology will be increasingly used to bridge the advice gap for less affluent customers following the Retail Distribution Review (RDR), in addition to streamlining the customer journey to make it easier to purchase protection products. Providers’ propositions are also changing. Policies are becoming more personalized to individual risk by using big data from wearables, with insurers developing policies for specific risk groups. Providers are also trying to actively help their customers manage their health by investing in diagnostic healthcare technology, launching wellbeing apps, and providing customers with virtual GP services.

Key Finding include in this report –

  • Total protection premiums reached £672.5m in 2016, exhibiting growth of 2.0% for the year. Term premiums reached £476.3m following 2.0% year-on-year growth to 2016, whereas whole of life premiums shrank by 13.6% to £98.1m.
  • The protection market is dominated by a few key players. Legal & General holds the largest share of the term market (32.6%), whereas SunLife holds the largest proportion of the whole of life market (39.1%).

Critical success factors –

  • Direct distribution: Customers are more confident making their own decisions and self-serving. Providers should ensure they provide the capacity for customers to purchase cover directly and through aggregators.
  • Robo-advice- Providers should offer solutions that help identify the advice products most suited to them. This is important to bridge the advice gap for less affluent individuals and those going direct.
  • Customer-centric products: Providers must move away from being protectors and begin to actively help customers manage their health and risk. Reframing products to talk about protection more positively and away from the point of death is an opportunity to increase penetration.

The report “UK Protection Insurance 2017: Term and Whole of Life” covers the market for individual regular premiums, concentrating on the main market for all types of consumers seeking their own cover. Taking protection as a whole, it focuses on the major and closely related product lines of term and whole of life insurance that broadly provide financial compensation in the risk-measured event of death or severe health issues.

Moreover, this report provides the following –

  • Examines the size of the protection market over time, and how the distribution landscape is changing and being impacted by technology and direct propositions.
  • Provides the top market players and their propositions.
  • Forecasts how the size of the market will change over the next five years, discusses consumer engagement with protection products, and highlights how providers’ propositions are likely to change in the future.

Companies mentioned in this report: Legal & General, SunLife, Scottish Friendly, Aviva, Royal London, Zurich, Vitality, Virgin Money, Post Office.

Scope

  • The protection market is dominated by a few key players. Legal & General holds the largest share of the term market, whereas SunLife holds the largest proportion of the whole of life market.
  • Providers are trying to actively help their customers manage their health by investing in diagnostic healthcare technology, launching wellbeing apps, and providing customers with virtual GP services.
  • Following the Retail Distribution Review, robo-advice and technology will help bridge the advice gap for less affluent consumers.

Reasons to buy

  • Understand how customers perceive protection products and what can be done to make them more attractive.
  • Remain competitive by discovering how providers are changing their propositions.
  • Discover how technology and robo-advice are being used to simplify the distribution of protection products.
  • See how the UK protection market is forecast to grow over the next five years.
Filed in: Banking & Finance, Insurance
Publisher : GlobalData
More Reports
Title Price Buy Now

Nepal Insurance Industry – Governance, Risk and Compliance

Nepal Insurance Industry - Governance, Risk and Compliance Summary GlobalData's 'Nepal Insurance Industry - Governance, Risk and Compliance' report is the result of extensive research into the insurance regulatory framework in Nepal. It provides detailed analysis of the insurance regulations for life, property, motor, liability, personal accident and health, and marine, aviation and transit insurance. The report specifies various requirements for the establishment and operation of insurance and reinsurance companies and intermediaries. The report brings together GlobalData's research, modeling and analysis expertise, giving insurers access to information on prevailing insurance regulations, and recent and upcoming changes in the regulatory framework, taxation and legal system in the co......
$950

Palestine Insurance Industry – Governance, Risk and Compliance

Palestine Insurance Industry - Governance, Risk and Compliance Summary GlobalData's 'Palestine Insurance Industry - Governance, Risk and Compliance' report is the result of extensive research into the insurance regulatory framework in Palestine. It provides detailed analysis of the insurance regulations for life, property, motor, liability, personal accident and health, and marine, aviation and transit insurance. The report specifies various requirements for the establishment and operation of insurance and reinsurance companies and intermediaries. The report brings together GlobalData's research, modeling and analysis expertise, giving insurers access to information on prevailing insurance regulations, and recent and upcoming changes in the regulatory framework, taxation and legal syst......
$950

Employee Benefits in Saudi Arabia 2020

Employee Benefits in Saudi Arabia 2020 Summary The Kingdom of Saudi Arabia has an extensive social security system, which aims to provide every citizen with a decent standard of living in line with Islamic principles. Its small population and high gross domestic product (GDP) allow the Kingdom to provide employed and self-employed residents with help, such as medical care, childcare, pensions, and unemployment benefit, as well as, in some cases, housing and disability benefits. Saudi Arabia had previously experimented with its social security system by bringing in foreign workers as the country's working population mainly consists of expatriates. However, due to their transient nature, the plan was later shelved. The Ministry of Labor provides general supervision, while the General Organ......
$1495

United Arab Emirates (UAE) Life Insurance – Key trends and Opportunities to 2023

United Arab Emirates (UAE) Life Insurance - Key trends and Opportunities to 2023 Summary GlobalData's 'United Arab Emirates (UAE) Life Insurance - Key trends and Opportunities to 2023' report provides in-depth market analysis, information and insights into The UAE life insurance segment. This report provides a detailed outlook by product category for The UAE life insurance segment. It provides values for key performance indicators such as gross written premium, claims paid and penetration during the review period (2014-2018) and forecast period (2018-2023). The report gives a comprehensive overview of The UAE economy and demographics, and provides detailed information on the competitive landscape in the country. The report brings together GlobalData's research, modeling and analysis ......
$3999

United Arab Emirates (UAE) General Insurance – Key trends and Opportunities to 2023

United Arab Emirates (UAE) General Insurance - Key trends and Opportunities to 2023 Summary GlobalData's 'United Arab Emirates (UAE) General Insurance - Key trends and Opportunities to 2023' report provides in-depth market analysis, information and insights into The UAE general insurance segment. This report provides a detailed outlook by product category for The UAE general insurance segment. It provides values for key performance indicators such as gross written premium, loss ratio and general insurance penetration during the review period (2014-2018) and forecast period (2018-2023). The report gives a comprehensive overview of the The UAE economy and demographics, and provides detailed information on the competitive landscape in the country. The report brings together GlobalData's......
$3999

United Arab Emirates (UAE) Reinsurance – Key trends and Opportunities to 2023

United Arab Emirates (UAE) Reinsurance - Key trends and Opportunities to 2023 Summary GlobalData's 'United Arab Emirates (UAE) Reinsurance - Key trends and Opportunities to 2023' report provides in-depth market analysis, information and insights intoThe UAE reinsurance segment. This report provides a detailed outlook by product category for The UAE reinsurance segment. It provides values for key performance indicators such as premium ceded and cession rates, during the review period (2014-2018). The report brings together GlobalData's research, modeling and analysis expertise, giving reinsurers access to information on segment dynamics and competitive advantages, and profiles of reinsurers operating in the country. The report also includes details of insurance regulations, and recent ......
$3999

Vietnam Cards and Payments Opportunities and Risks to 2024

Vietnam Cards and Payments Opportunities and Risks to 2024 Summary GlobalData's 'Vietnam Cards and Payments - Opportunities and Risks to 2024' report provides detailed analysis of market trends in Vietnam's cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry, including cards, credit transfers, direct debits, and cheques during the review-period (2016-20e). The report also analyzes various payment card markets operating in the industry and provides detailed information on the number of cards in circulation, transaction values and volumes during the review-period and over the forecast-period (2020e-24f). It also offers information on the country's competitive landscape, including market shares of issuers and schemes. The ......
$2750

Employee Benefits in Sweden 2020

Employee Benefits in Sweden 2020 Summary The Swedish social security system is an integral part of the country's welfare system and is classified into two types: the universal and social insurance system (old system) and unified social insurance, and the individual notional and mandatory individual accounts system (new system), which was established in 1999. The new insurance system covers persons born in or after 1954, while individuals born in or before 1937 are covered by the old system. With the exception of the earnings-related part of unemployment insurance, the social security regime is compulsory and covers everyone who lives or works in Sweden. To access all these social benefits, an individual requires a personnummer (a Swedish personal identity number) from the Swedish Tax Age......
$1495

Employee Benefits in Liechtenstein 2020

Employee Benefits in Liechtenstein 2020 Summary The principality of Liechtenstein's social security system covers all persons residing or working in the country. State pensions, corporate or company pensions (a mandatory occupational scheme for employees), and private pensions are the three main pillars of Liechtenstein's social security system. This network allows covering the risks related to sickness, invalidity, accidents at work and occupational diseases, healthcare and unemployment, and to prepare financially for retirement. State and corporate pensions are mandatory, while private pensions are voluntary. The report provides in-depth industry analysis, information and insights of the employee benefits in Liechtenstein, including: overview of the state and compulsory benefits in Li......
$1495

United States of America (USA) Cards and Payments – Opportunities and Risks to 2024

United States of America (USA) Cards and Payments - Opportunities and Risks to 2024 Summary GlobalData's 'United States of America (USA) Cards and Payments - Opportunities and Risks to 2024' report provides detailed analysis of market trends in the US cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry, including cards, cash, direct debits, cheques, and credit transfers during the review-period (2016-20e). The report also analyzes various payment card markets operating in the industry and provides detailed information on the number of cards in circulation, transaction values and volumes during the review-period and over the forecast-period (2020e-24f). It also offers information on the country's competitive landscape, in......
$2750
We use cookies to deliver the best possible experience on our website.
By continuing to use this site, or closing this box, you consent to our use of cookies. To learn more, visit our Privacy Policy