United Kingdom (UK) Protection Insurance - Income Protection

The income protection market rebounded in 2021 - new business premiums increased by 12.3% while the number of contracts rose by 10.5%. This was partly due to the recovery period following the 2020 pandemic, with many insurers relaxing COVID-19 underwriting restrictions in 2021, as well as an increased awareness of the importance of income protection following the economic uncertainty experienced by many in 2020. The market is projected to grow to 2026, driven by the high demand for such products amid consumers' increasing awareness of their financial vulnerability.
The report provides an in-depth assessment of the income protection insurance market, looking at current and historical market size with regards to changes in contracts and premiums. It examines how income protection products are distributed and highlights key changes in the competitive landscape, as well as the proposition of the key market players. The value of claims is also assessed. It provides five-year forecasts of contracts and premiums to 2026 and discusses how the market, distribution, and products offered are likely to change in the future, as well as the reasons for these changes.

Scope

• There were over 190,700 income protection (IP) contracts sold in 2021, and new business premiums totaled GBP67.5 million.
• Legal & General is the largest provider of income protection policies, having displaced Aviva in 2020.
• Musculoskeletal-related claims make up the largest proportion of claims and rose sharply (+29.6%) in 2021. This is linked to some of the ongoing restrictions on travel, lockdowns, and remote working.
• Mental illness-related claims continue to be higher than in the years preceding the pandemic due to increasing mental health awareness and a more open dialogue surrounding the topic.

Reasons to Buy

• Examine the size of the income protection market.
• Discover the leading providers of income protection.
• Learn about the impact of the cost-of-living crisis on the market and the longer-term implications of the COVID-19 aftermath.
• Understand how the claims landscape is evolving.