United Kingdom (UK) Term Assurance Distribution Dynamics and Future Market, 2022 Update

Powered by

All the vital news, analysis, and commentary curated by our industry experts.

United Kingdom (UK) Term Assurance Market Report Overview

The UK term assurance market is expected to be mainly boosted by technology innovations and regulatory developments. The UK term assurance market research report explores consumer purchasing behaviors and preferences for term assurance. New trends and innovations are highlighted, as well as the key factors that will influence the market over the next few years.

Key Type Non-Mortgage-Related Term Assurance and Mortgage-Related Term Assurance
Key Channels Insurers, Broker/Advisor, PCW, Banks, and Others
Key Purchasing Methods Online Via A PC/Laptop, On The Phone, Online Via A Smartphone/Tablet, Through The Provider’s App, Face To Face, and By Post
Key Brands Legal & General, Aviva, LV=, Zurich, and Scottish Widows

UK Term Assurance Market Trends

The UK term assurance market trends likely to gain traction in the upcoming years are a surge in innovation focused on consumer needs pertaining to health and wellbeing, significant regulatory changes, and crucial technological innovations. The pandemic has prompted several life insurers to offer at-home GP services instead of requiring in-person examinations. Virtual screenings have proven successful and provide a service that would not have been available otherwise. In May 2022, Aegon UK launched an advisor dashboard with the goal of bringing together protection applications on a single online platform.

In the coming years, technology investment will pick up and have an impact on every area of insurers’ operations, from internal workflows to the services and goods they offer clients. For instance, in March 2023, Aviva UK renewed its partnership with insurance software provider Majesco to enhance its underwriting profitability and risk mitigation capabilities.

Buy Full Report For More Insights On The UK Term Assurance Market Trends, Download A Free Sample Report

UK Term Assurance Market Segmentation by Type

The key UK term assurance market types are non-mortgage-related term assurance and mortgage-related term assurance. In 2022, the non-mortgage-related term assurance term assurance dominated the UK term assurance market share. Customers preferred to either purchase policies independently or be fully advised.

UK Term Assurance Market Analysis by Type, 2022 (%)

UK Term Assurance Market Analysis by Type, 2022 (%)

Buy Full Report For More Insights On The Types in the UK Term Assurance Market, Download A Free Sample Report

UK Term Assurance Market Segmentation by Channel

Some of the key channels in the UK term assurance market are insurers, broker/advisor, PCW, banks, and others. In 2022, insurers were the leading channels for non-mortgage-related term assurance policy purchases. In addition, in 2022, purchases through the bank channel also increased for mortgage-related policies but decreased for non-mortgage-related policies. This can be attributed to how banks offer fewer types of term assurance policies than insurers/brokers. For instance, HSBC Bank does not offer increasing term assurance policies. An increasing term assurance policy means that the assured value increases annually—normally by the Retail Price Index—and as a result the yearly premium is also revised up.

UK Non-Mortgage-Related Term Assurance Market Analysis by Channel, 2022 (%)

UK Non-Mortgage-Related Term Assurance Market Analysis by Channel, 2022 (%)

Buy Full Report For More Insights On The Channels in the UK Term Assurance Market, Download A Free Sample Report

UK Term Assurance Market – Behaviors and Attitude

Buying or moving to a new house were the top purchasing triggers for mortgage-related customers. The cost-of-living crisis and its influence on discretionary income in the UK made customers highly concerned about their debts/liabilities, including their mortgages. Life events such as buying a property, moving house, or starting a family tend to trigger purchases of non-mortgage-related term policies, and are thus key drivers of the term assurance market.

Cash lump sum and guaranteed sum were the top features for customers purchasing a non-mortgage-related term assurance policy, indicating that customers are drawn to clear financial benefits. Consumers are increasingly concerned about their ability to meet monthly financial commitments such as credit card dues, monthly bills, mortgage and rent payments, and saving money for retirement. This can be attributed to the impact of the cost-of-living crisis in the UK. In 2022, around 40.1% of term assurance customers (including both non-mortgage and mortgage-related customers) said they would consider using activity trackers in conjunction with their insurance policy. Wearable devices can be used to gamify life insurance policies, with rewards offered to customers when they achieve certain activity goals. Furthermore, these devices now double as monitors for diseases such as diabetes. Financial savings were the key driver for using activity trackers in 2022.

Buy Full Report For More Insights On The Behaviors and Attitude in the UK Term Assurance Market, Download A Free Sample Report

UK Term Assurance Market – Competitive Landscape

Some of the key brands or UK term assurance market providers include Legal & General, Aviva, LV=, Zurich, and Scottish Widows. In 2022, Legal & General led the term assurance market for both non-mortgage-related term assurance and mortgage-related term assurance.

UK Term Assurance Market Analysis by Companies, 2022 (%)

UK Term Assurance Market Analysis by Companies, 2022 (%)

Buy Full Report For More Insights On The Companies in the UK Term Assurance Market, Download A Free Sample Report

Key Highlights

  • Insurers and brokers were the leading channels for term assurance policy purchases in 2022, accounting for more than 50% each for all non-mortgage-related and mortgage-related policies.
  • For mortgage-related term assurance, the percentage of customers who purchased directly from the insurer decreased by 8.5pp in 2022, while non-mortgage-related term assurance increased by 4.0pp.
  • In 2022, online purchasing was widely preferred, accounting for 59.1% and 59.9% of total purchases for mortgage-related and non-mortgage-related term assurance policies. Digital methods are likely to remain the most popular method for purchasing term insurance policies.

Reasons to Buy

  • Understand consumer purchasing decisions and how these will influence the market over the next few years.
  • Improve customer engagement by recognizing what is most important to consumers and how insurers can adapt products and services to meet their needs.
  • Compare the Net Promoter Scores of key insurance providers.
  • Discover which providers lead the way in the market.
  • Adapt your distribution strategy to ensure it still meets customer purchasing behaviors.

Aviva
Legal & General
Royal London
LV=
Scottish Widows
Zurich

Table of Contents

Executive Summary

The Purchasing Journey

Behaviours and Attitudes

Brand Selection

Future Market

Appendix

Frequently asked questions

United Kingdom (UK) Term Assurance Distribution Dynamics and Future Market, 2022 Update thematic reports
Currency USD
$1,295

Can be used by individual purchaser only

$2,590

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


Undecided about purchasing this report?

Enquire Before Buying Request a Free Sample

Get in touch to find out about multi-purchase discounts

reportstore@globaldata.com
Tel +44 20 7947 2745

Every customer’s requirement is unique. With over 220,000 construction projects tracked, we can create a tailored dataset for you based on the types of projects you are looking for. Please get in touch with your specific requirements and we can send you a quote.

Sample Report

United Kingdom (UK) Term Assurance Distribution Dynamics and Future Market, 2022 Update was curated by the best experts in the industry and we are confident about its unique quality. However, we want you to make the most beneficial decision for your business, so we offer free sample pages to help you:

  • Assess the relevance of the report
  • Evaluate the quality of the report
  • Justify the cost

Download your copy of the sample report and make an informed decision about whether the full report will provide you with the insights and information you need.

Below is a sample report to understand what you are buying

See what our customers are saying

“The GlobalData platform is our go-to tool for intelligence services. GlobalData provides an easy way to access comprehensive intelligence data around multiple sectors, which essentially makes it a one-for-all intelligence platform, for tendering and approaching customers.

GlobalData is very customer orientated, with a high degree of personalised services, which benefits everyday use. The highly detailed project intelligence and forecast reports can be utilised across multiple departments and workflow scopes, from operational to strategic level, and often support strategic decisions. GlobalData Analytics and visualisation solutions has contributed positively when preparing management presentations and strategic papers.”

Business Intelligence & Marketing Manager, SAL Heavy Lift

“COVID-19 has caused significant interference to our business and the COVID-19 intelligence from GlobalData has helped us reach better decisions around strategy. These two highlights have helped enormously to understand the projections into the future concerning our business units, we also utilise the project database to source new projects for Liebherr-Werk to use as an additional source to pitch for new business.”

Market Analyst & Management, Liebherr-Werk

Your daily news has saved me a lot of time and keeps me up-to-date with what is happening in the market, I like that you almost always have a link to the source origin. We also use your market data in our Strategic Business Process to support our business decisions. By having everything in one place on the Intelligence Center it has saved me a lot of time versus looking on different sources, the alert function also helps with this.

Head of Key Accounts, Saab AB

Having used several other market research companies, I find that GlobalData manages to provide that ‘difficult-to-get’ market data that others can’t, as well as very diverse and complete consumer surveys.

Marketing Intelligence Manager, Portugal Foods

Our experience with GlobalData has been very good, from the platform itself to the people. I find that the analysts and the account team have a high level of customer focus and responsiveness and therefore I can always rely on. The platform is more holistic than other providers. It is convenient and almost like a one stop shop. The pricing suite is highly competitive and value for our organisation.

I like reports that inform new segments such as the analysis on generation Z, millennials, the impact of COVID 19 to our banking customers and their new channel habits. Secondly the specialist insight on affluent sector significantly increases our understanding about this group of customers. The combination of those give us depth and breadth of the evolving market.

I’m in the business of answering and helping people make decisions so with the intelligence center I can do that, effectively and efficiently. I can share quickly key insights that answer and satisfy our country stakeholders by giving them many quality studies and primary research about competitive landscape beyond the outlook of our bank. It helps me be seen as an advisory partner and that makes a big difference. A big benefit of our subscription is that no one holds the whole data and because it allows so many people, so many different parts of our organisation have access, it enables all teams to have the same level of knowledge and decision support.

Head of Customer Insight and Research, Standard Chartered

“I know that I can always rely on Globaldata’s work when I’m searching for the right consumer and market insights. I use Globaldata insights to understand the changing market & consumer landscape and help create better taste & wellbeing solutions for our customers in food, beverage and healthcare industries.

Globaldata has the right data and the reports are of very high quality compared to your competitors. Globaldata not only has overall market sizes & consumer insights on food & beverages but also provides insights at the ingredient & flavour level. That is key for B2B companies like Givaudan. This way we understand our customers’ business and also gain insight to our unique industry”

Head of Consumer Sensory Insights, Givaudan

GlobalData provides a great range of information and reports on various sectors that is highly relevant, timely, easy to access and utilise.  The reports and data dashboards help engagement with clients; they provide valuable industry and market insights that can enrich client conversations and can help in the shaping of value propositions. Moreover, using GlobalData products has helped increase my knowledge of the finance sector, the players within it, and the general threats and opportunities.

I find the consumer surveys that are carried out to be extremely beneficial and not something I have seen anywhere else. They provided an insightful view of why and which consumers take (or don’t) particular financial products. This can help shape conversations with clients to ensure they make the right strategic decisions for their business.

One of the challenges I have found is that data in the payments space is often piecemeal. With GD all of the data I need is in one place, but it also comes with additional market reports that provide useful extra context and information. Having the ability to set-up alerts on relevant movements in the industry, be it competitors or customers, and have them emailed directly to me, ensures I get early sight of industry activity and don’t have to search for news.

Senior Account Manager, TSYS
Go even deeper with GlobalData Intelligence Center

Every Company Report we produce is powered by the GlobalData Intelligence Center.

Subscribing to our intelligence platform means you can monitor developments at United Kingdom (UK) Term Assurance Distribution Dynamics and Future Market, 2022 Update in real time.

  • Access a live United Kingdom (UK) Term Assurance Distribution Dynamics and Future Market, 2022 Update dashboard for 12 months, with up-to-the-minute insights.
  • Fuel your decision making with real-time deal coverage and media activity.
  • Turn insights on financials, deals, products and pipelines into powerful agents of commercial advantage.