866-997-4948(US-Canada Toll Free)

UK Protection Insurance 2018: Critical Illness & Income Protection

Published By :


Published Date : Sep 2018

Category :


No. of Pages : 46 Pages

UK Protection Insurance 2018: Critical Illness & Income Protection


"UK Protection Insurance 2018: Critical Illness & Income Protection", report discusses the IP and CII market, looking at market size with regards to changes in contracts and premiums, in addition to claims. It highlights the barriers to consumer engagement, how products are distributed, and the main players and their propositions. It provides five-year forecasts of market size in premiums to 2022, and discusses how the market is likely to change as healthcare technology is developed.

Both the income protection (IP) and critical illness insurance (CII) markets experienced strong growth in 2017. Combined, they increased their share of the total protection market for the fourth year in a row, accounting for 10% of premiums in 2017. This indicates growing demand for illness- and injury-oriented products. The IP and CII markets remain locked in a dynamic where products are sold as opposed to bought; as a result, the advisory channel has remained the main way in which IP and CII products are distributed. But consistent growth is occurring in the non-advisory channel (to a greater extent in the CII market), which suggests that over the coming years we may see a shift towards products being bought rather than sold.


- The number of contracts in the IP market increased in 2017 to 132,949, up 11.3% compared with the previous year. Premiums grew by 11% compared with 2016, reaching 53.63m.
- The standalone CII market experienced considerable growth in 2017, with premiums and contracts increasing by 37% and 46.2% respectively.
- Legal & General remained the largest provider of CII products in 2017, accounting for 25.5% of new contract sales. Meanwhile Aviva accounted for 24.6%, with its strong performance largely due to the incorporation of Friends Life.

Reasons to buy

- Understand the barriers of uptake for CII and IP, and learn how to increase consumer engagement.
- Explore how the distribution landscape is changing for these products.
- Discover which providers lead the way in CII and IP.
- See how the CII and IP markets are forecast to grow over the next five years.
Table of Contents
1.1. Market summary 2
1.2. Key findings 2
1.3. Critical success factors 2
2.1. Introduction 8
2.2. The total protection market grew in 2017 8
2.2.1. Contract levels and premiums both experienced strong growth in 2017 8
2.3. IP and CII contracts and premiums experienced strong growth in 2017 10
2.3.1. IP and CII contracts account for the greatest share of the total protection market since 2012 10
2.3.2. The IP market continued to grow in 2017 12
2.3.3. IP policies with a shorter-term payout are seen as one method of limiting the cost of claims 13
2.3.4. Universal Credit and IP products remain a sticking point 14
2.3.5. UK households are continuing to save less 14
2.3.6. The standalone CII market experienced a second year of unprecedented growth 14
2.3.7. CII is more common when sold as a rider rather than standalone 16
2.3.8. CII as a rider has the greatest penetration in the mortgage-related term market 16
2.3.9. The group life market continued to shrink in 2017 18
2.4. Cancer remains the largest cost for CII insurers 19
2.4.1. The number of claims relating to cancer increased by 8% in 2017 19
2.4.2. Insurers should emphasize the frequency of successful claims in order to increase engagement 21
2.4.3. The total number of claims in the IP market fell in 2017 22
3.1. IP is reliant on the advisory channel 24
3.1.1. The independent advice channel increases its dominance within IP distribution 24
3.2. CII has seen continued growth in the non-advised channel 26
3.2.1. The independent advice channel saw the number of CII contracts double 26
3.2.2. CII comparison sites will aid the advisory process 27
4.1. The protection market is ruled by a small number of players 28
4.1.1. Legal & General and Aviva dominated the CII market in 2017 by number of new contracts 28
4.1.2. IP gets a new market leader following Aviva and Friends Life tie-up 29
4.2. Competitor profiles for the leading CII and IP providers 31
4.2.1. Legal & Generals CII product gives policyholders access to a number of additional benefits 31
4.2.2. Legal & Generals IP product can be tailored to reduce premiums 32
4.2.3. Aviva offers two types of CII products to consumers tailored for different circumstances 32
4.2.4. Avivas Income Protection+ provides flexibility that allows product tailoring 33
4.2.5. LV=s CII product is only available as a rider alongside term life insurance 33
4.2.6. LV= offers two main types of IP products to consumers 33
4.2.7. Zurich to launch new protection platform in September 2018 34
4.2.8. Guardian Financial Services aims to shake up the protection market 34
4.2.9. Vitalitys cover operates on a severity scale when assessing claims 34
4.3. The continued complexity of products could result in a new classification system 35
4.3.1. CII and IP could look to other markets to help consumers understand products 35
4.3.2. The number of conditions offered by the top five CII providers varies considerably 35
4.3.3. The increasing number of individuals purchasing without advice may lead to the development of more comparison services 37
5.1. The number of contracts is forecast to grow in the IP market 38
5.1.1. IP premiums will rise slower than contracts from 2020 to 2022 38
5.2. Both premiums and contracts will grow in the standalone CII market 39
5.2.1. Standalone CII contracts are forecast to rise by 7% by 2022 39
5.3. Insurers will use technology to develop more personalized products 40
5.3.1. Protection products will begin to incorporate the Internet of Things to change the focus to claims prevention 40
5.3.2. The data insurers collect - and how they collect it - will continue to evolve 41
5.3.3. Genome profiling could become widespread in the protection market 41
5.4. AI and robo-advice will increasingly be utilized 42
5.4.1. AI will help to streamline the claims process 42
5.4.2. Robo-advice will gain importance in the distribution of protection products 42
6.1. Abbreviations and acronyms 43
6.2. Bibliography 43
6.3. HHI 44
6.4. Forecasting Methodology 44
6.5. Further reading 45

List of Tables
Table 1: Total protection market split by mortgage- and non-mortgage related products, 2011-17 10
Table 2: The number of contracts in the IP and CII markets, 2011-17 11
Table 3: Premiums in the IP and CII markets (000), 2011-17 11
Table 4: Contracts and premiums in the IP market, 2011-17 13
Table 5: Contracts and premiums in the standalone CII market, 2011-17 15
Table 6: Contracts and premiums in the CII rider market, 2014-17 16
Table 7: The composition of the CII as a rider market, 2017 17
Table 8: Uptake rates of CII as a rider across different products, 2017 18
Table 9: Number of contracts in the total group market, 2011-17 19
Table 10: Premiums in the total group market (000), 2011-17 19
Table 11: The cost of claims in the CII market, 2016-17 20
Table 12: IP claims landscape, 2016-17 23
Table 13: Distribution of IP products, 2014-17 25
Table 14: Distribution of standalone CII products, 2014-17 27
Table 15: Top five providers by share of new CII contracts, 2016-17 29
Table 16: Top five providers by share of new IP contracts, 2016-17 31
Table 17: Percentage payout of claims by severity and Vitality serious illness cover by type 35

List of Figures
Figure 1: The total protection market experienced growth in 2017 following a period of stagnation 9
Figure 2: Premiums for IP and CII products grew at the fastest rate of the last seven years 12
Figure 3: Prices in the IP market remained almost flat in 2017 as growth in premiums matched contracts 13
Figure 4: The standalone CII market grew considerably in 2017 15
Figure 5: Cancer remains the biggest claims cost in the CII market 21
Figure 6: Mental illness claims are the most costly for insurers 22
Figure 7: The independent advice channel remains dominant in the IP market 25
Figure 8: All distribution channels experienced an increase in standalone CII business 26
Figure 9: Legal & General continued to dominate the CII market in 2017 28
Figure 10: Aviva accounted for the greatest share of new IP contracts in 2018 30
Figure 11: Vitality protects against the highest number of CII conditions compared to the rest of the top five 37
Figure 12: The IP market is forecast to continue growing year on year 38
Figure 13: The number of contracts and premiums in the CII market are both forecast to increase 40
Figure 14: Forecasting methodology 44

Make an enquiry before buying this Report

Please fill the enquiry form below.

  • Full Name *
  • Your Email *
  • Job Title
  • Company
  • Phone No. * (Pls. Affix Country Code)
  • Message
  • Security Code *