UK Protection Insurance 2024: Critical Illness

UK Protection Insurance 2024: Critical Illness

Summary

This report provides an in-depth assessment of the critical illness insurance market, looking at current and historical market size with regards to changes in contracts and premiums. It examines how critical illness products are distributed and highlights notable changes in the competitive landscape, as well as the propositions of key market players. The report provides five-year forecasts of contracts and premiums to 2028 and discusses how the market, distribution, and products offered are likely to change in the future (as well as the reasons for these changes).In 2023, the standalone critical illness market witnessed an increase in the number of contracts sold, totaling 75,700. Conversely, critical illness as a rider for term assurance saw a decrease in contracts and premiums during the same period. Advisors accounted for the majority of contracts sold and premiums, with intermediary firms being the most prevalent within the advised channel. Insurers should focus on targeting young individuals with critical illness insurance products, as many in this demographic are currently unaware of the product's benefits, leading to low uptake rates.

Scope

• 52.1% of individuals aged 18 to 24 express comfort with using an AI-powered chatbot for resolving a policy issue, compared to only 12.6% of those aged 70 and above.
• The transition toward online purchasing is clearly visible, with 58.4% of critical illness policies now being bought online or digitally, up from 52.6% in 2022.
• Younger individuals, especially those under 35, are more willing to share biometric data with insurers for financial incentives compared to older age groups.

Reasons to Buy

• Examine the size of the standalone critical illness insurance market
• Identify the leading providers of critical illness
• Learn about the implications of the cost-of-living crisis on the market
• Understand the influence of a variety of factors on market growth