United Kingdom (UK) Protection Insurance – Critical Illness Market

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United Kingdom (UK) Critical Illness Insurance Market Report Overview

United Kingdom (UK) Critical Illness Insurance Market Report OverviewThe number of contracts in the critical illness market reached 75,700 in 2023. The market will grow at a CAGR of more than 5% from 2023 to 2028. As inflationary pressures ease, interest rates decline, and the economy strengthens, consumer confidence is expected to rise, leading to an uptick in contract sales. The growth in contracts will be driven by the rising awareness of the product. There remains a significant opportunity to engage younger demographics, as many consumers lack a clear understanding of the product’s benefits. Nevertheless, the growth in contracts will contribute to the overall increase in premiums.

UK Critical Illness Market Outlook, 2023-2028 (Number of Contracts)

UK Critical Illness Market Outlook, 2023-2028 (Number of Contracts)

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The “United Kingdom (UK) Protection Insurance – Critical Illness Market” report provides an in-depth assessment of the critical illness insurance market, looking at current and historical market size changes in contracts and premiums. It also examines how critical illness products are distributed and highlights notable changes in the competitive landscape, as well as the propositions of key market players. The report also includes five-year forecasts of 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).

Market Size (Number of Contracts) 75,700
CAGR (2023-2028) >5%
Forecast Period 2023-2028
Historical Period 2019-2022
Key Critical Illness Rider Contracts by Type ·       Mortgage Term

·       Non-Mortgage Term

Key Critical Illness Contracts by Channel ·       Advised

·       Non-Advised

·       Direct

Key Companies ·       Aviva

·       L&G

·       AIG

·       Royal London

·       Vitality

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UK Critical Illness Market Segmentation by Contract Types

The key contract types in the UK protection insurance–critical illness rider market are mortgage terms and non-mortgage terms. In 2023, the non-mortgage term segment accounted for the maximum critical illness rider share. High mortgage rates and the cost-of-living crisis in the UK had a severe impact on the mortgage term segment.

UK Critical Illness Rider Market Analysis by Contract Types, 2023 (%)

UK Critical Illness Rider Market Analysis by Contract Types, 2023 (%)

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UK Critical Illness Market Segmentation by Channel

The key channels in the UK critical illness market are advised, non-advised, and direct. In 2023, the advised channel dominated the market, both in terms of premiums and contracts. Intermediary firms are prevalent within the advised channel, as consumers seek clarity on the extent of coverage provided by the policies they are considering.

UK Critical Illness Market Analysis by Channel, 2023 (%)

UK Critical Illness Market Analysis by Channel, 2023 (%)

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UK Critical Illness Market – Competitive Landscape

A few leading companies in the UK critical illness market are:

  • Aviva
  • L&G
  • AIG
  • Royal London
  • Vitality

In 2023, Aviva accounted for the largest share of the critical illness market. This can be attributed to its standalone CI product, as the poor performance of CI as a rider of term assurance in 2023 likely influenced this trend. In addition to this, with the recent acquisition of AIG Life, Aviva is positioned to further solidify its position in the market

UK Critical Illness Market Analysis by Companies, 2023 (%)

UK Critical Illness Market Analysis by Companies, 2023 (%)

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Key Segments Covered in the Report

UK Critical Illness Market Outlook by Contract Types (%, 2019-2028)

  • Mortgage Term
  • Non-Mortgage Term

UK Critical Illness Market Outlook by Channel (%, 2019-2028 )

  • Advised
  • Non-Advised
  • Direct

Scope

52.1% of individuals aged 18 to 24 express comfort with using an AI-powered chatbot for resolving a policy issue, compared to only 12.6% of those aged 70 and above.

The transition toward online purchasing is clearly visible, with 58.4% of critical illness policies now being bought online or digitally, up from 52.6% in 2022.

Younger individuals, especially those under 35, are more willing to share biometric data with insurers for financial incentives compared to older age groups.

Key Highlights

  • The cost-of-living crisis has impacted consumer behavior, with some individuals cancelling policies. As a result, insurers should look to come up with more affordable or flexible policies.
  • Insurers should look to improve their underwriting capabilities to include those that have chronic conditions, such as Type 2 diabetes. Given that this market is relatively untapped, it opens the possibility for growth.
  • Consumers have been shifting towards the purchase of insurance online, sped up by the pandemic’s impact on digital adoption. The life insurance sector has generally been behind on digitalization; however, shifting consumer dynamics should act as a catalyst for insurers to improve their digital capabilities.

Reasons to Buy

  • Examine the size of the standalone critical illness insurance market.
  • Identify the leading providers of critical illness.
  • Learn about the implications of the cost-of-living crisis on the market.
  • Understand the influence of a variety of factors on market growth.

Vitality
Zurich
L&G
Aviva
Royal London
AIG
CIExpert
INSTANDA
Square 4
HSBC
Beagle Street

Table of Contents

Table of Contents

1. Executive Summary

2. Background: The Protection Market

3. The Critical Illness Market

4. Market Drivers

5. Product Launches and Innovation

6. Competitive Landscape

7. Forecasts

8. Appendix

Frequently asked questions

United Kingdom (UK) Protection Insurance – Critical Illness Market standard reports
Currency USD
$3,450

Can be used by individual purchaser only

$10,350

Can be shared globally by unlimited users within the purchasing corporation e.g. all employees of a single company


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