UK Whole of Life Assurance - Distribution Dynamics 2023

UK Whole of Life Assurance - Distribution Dynamics 2023

Summary

This report explores consumer purchasing preferences for whole of life assurance, as well as how they have changed over time. It identifies what is most influential to customers when purchasing a whole of life 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 market over the next few years.

In 2023, visiting their existing provider’s website and calling their existing provider were cited by 22.1% and 11% of respondents. Yet visiting their existing provider’s website activity declined by 2.2pp compared to 2022. This suggests consumers are struggling to find the information they need on providers’ sites, making this an area for improvement. The most popular action taken by underwritten whole of life policyholders was speaking to a broker/IFA (22.4%), which increased by 7.1pp in 2023 compared to 2022. In the underwritten space, brokers and IFAs play a key role in the distribution of underwritten policies owing to their greater complexity.

Scope

• The insurer channel leads guaranteed acceptance whole of life, accounting for 52.7% of sales in 2023. Insurers’ share increased by 2pp compared to 2022, while the share of second-placed brokers decreased by 0.3pp.
• GlobalData surveying notes that 49.3% of consumers who purchased an underwritten policy via the insurer channel cited its quicker purchasing process. This highlights the importance individuals place on quick and efficient processes.
• Online purchasing dominates in the guaranteed acceptance space, accounting for 49.4% of total purchases. Most guaranteed acceptance policies are sold via non-advised means with no medical examinations, making the purchasing process ideally suited to online methods.

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 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 whole of life space and learn about new product innovations.
• Adapt your distribution strategy to ensure it still meets customer purchasing behaviors.