United Kingdom (UK) Protection Insurance - Critical Illness

United Kingdom (UK) Protection Insurance - Critical Illness

Summary

This report focuses on the UK’s standalone critical illness insurance market in the context of the wider protection space. It provides an in-depth assessment of the 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 key changes in the competitive landscape, as well as the propositions of the key players. The value of claims is also assessed. It provides forecasts of contracts and premiums to 2026, and discusses how the market, distribution, and products offered are likely to change in the future, as well as the reasons for these changes.

The number of standalone critical illness contracts rose by 14.7% to 64,200 and premiums increased by 6.8% to GBP24.2 million in 2021. The largest proportion of policy sales in 2021 were made via the restricted advice channel. To adapt to the shift in consumer perceptions towards digital channels, the sales process and the claims process will both need increased digital integration going forward. Consumer demand will also drive the expansion of digital services, since the COVID-19 pandemic has altered not only the way services are delivered but also how people engage with digital services. Meanwhile, the relevance and advantages of critical illness protection have been emphasized by the pandemic, which will contribute to growth going forward.

Scope

• Legal & General (L&G) remains the leading provider of critical illness insurance. The top five providers accounted for 74.1% of the market.
• Life insurers paid GBP1.1 billion in critical illness claims in 2021. Cancer was the most common reason for claims, while COVID-19-related claims made up 5.6% of the total.
• The average claims payout increased by 1.0%, averaging GBP62,434 for 2021.

• Examine the size of the standalone critical illness market.
• Identify the leading providers of critical illness insurance.
• Learn about the short-term and longer-term implications of COVID-19 on the market.
• Understand the influence of a variety of factors on market growth.