How Customers Purchase Income Protection Insurance?

How Customers Purchase Income Protection Insurance?

Summary

According to the Association of British Insurers, the income protection market registered growth in new business premiums and contracts in 2021. High demand for these products owing to the COVID-19 pandemic and consumers’ increasing awareness of their financial vulnerabilities supported the growth.

At a time when COVID-19 is changing consumer behavior, this report explores how purchasing preferences have changed over time. It discovers what is most influential to customers when purchasing an income protection policy and reveals the most popular providers in the market. New trends and innovations are highlighted, as well as the key factors that will influence the income protection insurance market over the next few years.

Scope

• Visiting a price comparison website remained the most popular pre-purchase activity in 2021.
• Online channels remained the most popular purchasing method in 2021, while phone purchases gained traction.
• Events such as Brexit and the COVID-19 pandemic have caused economic uncertainty and increased unemployment. These events were key triggers for consumers to purchase income protection policies in 2021.

• 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.
• Compare the Net Promoter Scores of key insurance providers.
• Discover which providers lead the way in the income protection space and learn about new product innovations.
• Adapt your distribution strategy to ensure it still meets customer purchasing behaviors.