United Kingdom (UK) Term Assurance Distribution Dynamics and Future Market, 2022 Update

This report explores consumer purchasing behaviors and preferences for term assurance. New trends and innovations are highlighted, as well as the key factors that will influence the market over the next few years.

The proportion of customers visiting a price comparison website (PCW) to purchase non-mortgage-related term assurance policies increased by 0.3pp in 2022. Close to a third of mortgage-related term assurance policyholders chose to speak to an IFA or broker prior to purchasing a policy that year. This indicates that professional advice is becoming more important to consumers before purchasing a policy. As a mortgage is a long-term commitment, products related to it are more likely to require advice.

Scope

• Insurers and brokers were the leading channels for term assurance policy purchases in 2022, accounting for more than 50% each for all non-mortgage-related and mortgage-related policies
• For mortgage-related term assurance, the percentage of customers who purchased directly from the insurer decreased by 8.5pp in 2022, while non-mortgage-related term assurance increased by 4.0pp
• In 2022, online purchasing was widely preferred, accounting for 59.1% and 59.9% of total purchases for mortgage-related and non-mortgage-related term assurance policies. Digital methods are likely to remain the most popular method for purchasing term insurance policies

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 consumers and how insurers can adapt products and services to meet their needs
• Compare the Net Promoter Scores of key insurance providers
• Discover which providers lead the way in the market
• Adapt your distribution strategy to ensure it still meets customer purchasing behaviors.