The UK protection market has seen significant changes in recent years, driven by both regulatory and market forces. According to a report from the Association of British Insurers (ABI), the UK protection market grew by 5.7% in 2021, reaching a total value of £6.6 billion.
One of the main drivers of this growth has been the increased demand for income protection, which saw a 22.8% increase in premiums in 2021. This is likely due to the ongoing economic uncertainty caused by the COVID-19 pandemic, which has highlighted the importance of protecting against loss of income.
Another factor contributing to the growth of the UK protection market has been the increased availability of digital distribution channels. Many insurers have invested heavily in technology to make it easier for customers to purchase protection products online, with some offering fully digital application processes.
However, the report also notes that the UK protection market faces several challenges, including a lack of consumer engagement and awareness. Many people still view protection products as an unnecessary expense, despite the potential financial consequences of not having adequate coverage.
Additionally, the report highlights the need for greater transparency and simplicity in product design and pricing, as well as a more consistent approach to claims handling across the industry.
Overall, the UK protection market is showing signs of growth and innovation, but there is still work to be done to ensure that consumers are adequately protected and informed about their options.
