UK Protection Insurance 2024: Whole of Life Assurance
Summary
This report provides an in-depth assessment of the whole of life market, looking at current and historical market size with regards to changes in contracts and premiums. It examines how whole of life products are distributed, and highlights key changes in the competitive landscape, as well as the propositions of the key players. It provides five-year forecasts for market size by 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 whole of life market witnessed a resurgence, with the number of contracts increasing after three consecutive years of decline. Premiums also saw an uptick during the same period. Guaranteed acceptance policies represented 83.7% of contracts in 2023, yet only accounted for 47% of premiums. The proportion of premiums attributed to underwritten policies is significantly higher than their share of policies, owing to the inherent nature of the policy and the coverage it offers. The direct channel is the favored distribution channel of guaranteed acceptance products, due to the simplicity of the product being sold.
Scope
- SunLife dominated the whole of life insurance market in 2023, holding a 51.9% share of contracts, while second-placed AIG accounted for just 15.8%.
- The use of providers' apps for over-50s insurance purchases saw a notable rise from 4.7% in 2022 to 8.1% in 2023.
- 52.1% of individuals aged 18 to 24 express comfort with AI-powered chatbots, compared to only 12.6% of those aged 70 and above.
- Examine the size of the whole of life assurance market
- Identify the leading providers of whole of life assurance
- Learn about the implications of the cost-of-living crisis on the market
- Understand the influence of a variety of factors on market growth
- Executive Summary
- Background: The Protection Market
- Contracts in the protection market declined for a second year
- Whole of life grew in terms of contract and premiums
- The advised channel leads the protection market
- The Whole of Life Assurance Market
- The whole of life market experienced an uptick in 2023
- Underwritten policies account for over half of whole of life premiums
- Consumers mostly purchase over-50s insurance direct
- 70.8% of underwritten premiums are advised sales
- Market Drivers
- Rising funeral costs in 2023 have sparked a surge in demand for over-50s insurance
- Many businesses are yet to start with the first Consumer Duty board report
- FCA regulations will make it easier to compare over-50s policies and funeral plans
- The inheritance tax threshold will remain unchanged until 2028
- AI chatbots can be leveraged to provide a seamless consumer experience
- Purchasing over-50s policies online remains the favored option
- Product Launches and Innovation
- Clark UK and iptiQ launch over-50s life insurance policy
- SunLife and iptiQ launch digital over-50s life insurance
- Other partnerships and innovations
- Competitive Landscape
- SunLife accounts for over half of the whole of life market
- Table Whole of life market share by number of new contracts/lives insured, 2023
- Company Profile: SunLife
- Company Profile: AIG
- Company Profile: Scottish Friendly
- SunLife accounts for over half of the whole of life market
- Forecasts
- The whole of life market is poised for growth in 2024
- The whole of life market is set to continue growing throughout the forecast period
- Rising house prices may drive demand for underwritten whole of life products
- Embracing digitalization is crucial as consumer behaviors evolve
- Escalating funeral costs drive demand for over-50s whole of life policies
- Appendix
Research Assistance
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