How UK Customers Purchase Income Protection Insurance 2020

How Customers Purchase Income Protection Insurance 2020

Summary

This report explores the attitudes, behaviors, and preferences of customers who purchased an income protection policy in the last 12 months. It explores distribution and the purchasing journey, policy purchase triggers, the financial concerns of customers, and brand selection. It also sizes the income protection market using Association of British Insurers data.

Customers purchasing income protection in the UK were influenced by factors including financial concerns, product features, and even whom they sought financial advice from. With seven out of 10 survey respondents holding a mortgage it is clear that the recent activity in the housing market creates an opportunity for the income protection market to grow as cross-selling opportunities arise.

Scope

• Comprehensive cover was the leading consumer choice in 2020, accounting for 45.7% of income protection purchases.
• The use of IFAs/brokers as a way to research policies increased considerably in 2020.
• The most common monthly price range is £20-29.

Reasons to Buy

• Understand consumer purchasing decisions and how these will influence the market over the next few years.
• Improve customer engagement by recognizing what is most important to them and how insurers can adapt their products and services to meet their needs.
• Discover which providers lead the way in the income protection space.
• Adapt your distribution strategy to ensure it still meets customer purchasing behaviors.