United Kingdom (UK) Protection Insurance – Term Assurance Market

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United Kingdom (UK) Protection Insurance – Term Assurance Market Report Overview

The term assurance market in the UK was valued at GBP529.3 million in terms of premiums in 2023. The market in the UK experienced a decline. This downturn can be attributed primarily to a decrease in mortgage-related term contracts and premiums. This was a result of poor mortgage lending throughout 2023, due to mortgage rates being high for most of the year.

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The ‘UK Protection Insurance – Term Assurance’ report provides an in-depth assessment of the term assurance market, looking at current and historical market size with regard to changes in contracts and premiums. It examines how term assurance products are distributed and highlights key changes in the competitive landscape, as well as the propositions of the key market players. It provides five-year forecasts of market size in contracts and premiums to 2028. In addition, the report 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 (2023) GBP529.3 million
Key Segments (Premiums) ·       Non-Mortgage Related Term

·       Mortgage-Related Term

Key Distribution Channel (Premiums) ·       Advised

·       Non-Advised

·       Direct

Key Insurers ·       L&G

·       Aviva

·       AIG

·       Royal London

·       Zurich

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UK Term Assurance Market Drivers

In the current economic climate, consumers are increasingly looking for ways to save money and get the best value for their insurance products. When it comes to term assurance, which is a crucial financial tool for protecting one’s family in the event of unexpected events, consumers want to ensure they are getting the most cost-effective coverage possible.

Moreover, consumers are also becoming more aware of the importance of seeking advice from insurance advisors who can help them find the best options tailored to their specific needs. This personalized approach is particularly important when it comes to term assurance, as the coverage needs to align closely with the individual’s financial situation and future goals.

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UK Term Assurance Market Segments

The key segments in the UK term assurance market are non-mortgage related term and mortgage-related term. In 2023, the non-mortgage related term accounted for the highest share of premiums.

UK Term Assurance Market Analysis by Segments, 2023 (%)

UK Term Assurance Market Analysis by Segments, 2023 (%)

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UK Term Assurance Market Segmentation by Distribution Channel

The key distribution channels in the UK term assurance market are advised, non-advised, and direct. In 2023, the advised channel was the favored distribution channel for mortgage-related terms. Advisors played a pivotal role in guiding consumers toward suitable products.

UK Term Assurance Market Analysis by Distribution Channel, 2023 (%)

UK Term Assurance Market Analysis by Distribution Channel, 2023 (%)

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UK Term Market Assurance Market – Competitive Landscape

A few of the leading insurers in the UK’s term assurance market are:

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

In 2023, L&G dominated the term market assurance. L&G offers a range of life insurance products, such as term assurance, mortgage life insurance, and over-50s guaranteed acceptance, along with income protection and CI protection.

UK Term Assurance Market Analysis by Insurers, 2023 (%)

UK Term Assurance Market Analysis by Insurers, 2023 (%)

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UK Term Assurance Market – Recent developments

  • In September 2023, Legal & General (L&G) launched online claim submission functionality via its My Account portal. Policyholders with eligible products can submit claims and supporting information digitally. This offers a more efficient and simplified claims process for customers.
  • In November 2023, AIG Life introduced a new underwriting rules engine and enhanced intermediated underwriting journey with over 50 improvements aligned with the FCA’s Consumer Duty rules. The engine features simplified questions and faster decisions, utilizing Swiss Re’s Magnum Pure technology.

Segments Covered in the Report

UK Term Assurance Market Segments (2023)

  • Non-Mortgage Related Term
  • Mortgage-Related Term

UK Term Assurance Market Outlook by Channels (2023)

  • Advised
  • Non-Advised
  • Direct

Key Highlights

  • Legal and General (L&G) remained the largest player in the term assurance market in 2022.
  • We forecast a decline in contracts for mortgage-related terms in 2023. This will be due to high-interest rates and the cost-of-living crisis, which have deterred individuals from taking out mortgages, thus impacting mortgage-related term take-up.
  • By analyzing data and spotting trends, AI can increase the accuracy and effectiveness of term assurance underwriting. If incorporated with wearable devices, the real-time data generated can offer insights for customized policies and flexible pricing.

Reasons to Buy

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

INSTANDA
Pulse
1Edge
Guardian
Eleos
Aviva
AIG
Swiss Re
UnderwriteMe
Legal & General
Royal London
Zurich
Vitality
HSBC

Table of Contents

Table of Contents

1. Executive Summary

2. Background: The Protection Market

3. The Term Assurance Market

4. Market Drivers

5. Product Launches and Innovation

6. Competitive Landscape

7. Forecasts

8. Appendix

Frequently asked questions

United Kingdom (UK) Protection Insurance – Term Assurance Market standard reports
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