Boston, MA -- (SBWIRE) -- 10/22/2013 -- New business premiums in the income protection and critical illness market grew by 14.5% in 2012, which coincided with an increase in mortgage sales. However, the income protection gap in the UK has remained significant, rising by 46% between 2002 and 2012. The income protection and critical illness market recorded a decline of 14.6% in 2008, with new business premiums falling by 24.4% in 2009. The recession has affected household finances, reducing the demand for discretionary income protection and critical illness policies. The fall in mortgage lending from 2008 onwards was accompanied by a decline in the sale of income protection and critical illness policies, usually taken out by homebuyers. Nevertheless, insurers delivered a steady volume of new business in the income protection and critical illness market during the review period. The critical illness category accounted for 48.3% of the total new business premiums, while income protection represented 31.2%. Income protection dominated group policy sales, accounting for 81.0% of group new business premiums in 2012. The group critical illness sub-category achieved significant growth of 99.2% between 2008 and 2012, with its share in total group new business premiums rising from 6.0% to 19.0% in the same period.

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Key Highlights

- Income protection and critical illness market delivers steady performance as protection gap widens
- Income protection and critical illness products will continue to increase their presence
- Stable claim payouts are expected to rebuild consumer trust in the industry
- Advisors will shift their attention towards protection business in the post-RDR world
- Regulatory changes will bring further uncertainty
- Premium growth is expected to settle at 4.3% by 2017

Scope

- This report provides a comprehensive analysis of the income protection and critical illness market in the UK
- It provides historical values for the UK's income protection and critical illness market for the report's 2008-2012 review period and forecast figures for the 2013-2017 forecast period
- It offers estimates of new business premiums collected in the income protection and critical illness segment
- It analyses the key features of income protection and critical illness products
- It provides an overview of claims, market dynamics and market drivers
- It discusses various distribution channels for income protection and critical illness insurance products in the UK
- It profiles top protection providers in the UK and outlines the key regulatory changes affecting them

Reasons to Get This Report

- Gain an understanding of the UK income protection and critical illness market size
- Explore the market dynamics across income protection and critical illness categories
- Learn about the performance of claims, market drivers and distribution channels

Companies Mentioned in this Report: Aegon UK Plc, Aviva Plc, HSBC Holdings Plc, Legal & General Group, Liverpool Victoria Group, Lloyds Banking Group, Partnership Life Assurance Ltd, Royal London Group, Unum Group, Zurich Financial Services Ltd

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