United Kingdom (UK) Whole of Life Assurance Distribution Dynamics and Future Market, 2022 Update

UK Whole of Life Assurance Distribution Market Report Overview

Purchasing directly through insurers has been the most used channel throughout the review period for purchasing whole of life assurance policies, that accounted for more than 50% of the purchases.

The UK whole of life assurance market research report explores consumer purchasing preferences for whole of life assurance, as well as how they have changed over time. It identifies what is most influential to customers when purchasing a whole of life policy and reveals the most popular providers in the market. New trends and innovations are highlighted, as well as the key factors that will influence the market over the next few years.

The UK Whole of Life Assurance - The Purchasing Journey

Guaranteed Acceptance Whole of Life Assurance:

Among the pre-purchase activities of guaranteed acceptance whole of life insurance customers, visiting an existing provider’s website recorded an increase of 6.5 pre-purchase (pp) activity in 2022 as, customers preferred to look for better deals and coverages on the existing insurer websites.

The key channels used for purchasing guaranteed acceptance whole of life policy are insurer, broker/FA, bank, PCW, and others. Purchasing directly through insurers has been the most used channel throughout the review period for purchasing whole of life assurance policies.

Guaranteed Acceptance Whole of Life Assurance, by Channels (%)

For more insights on the key channels under the guaranteed acceptance whole of life assurance, download a free report sample

Underwritten Whole of Life Assurance:

In 2022, the most popular action taken by the underwritten whole of life policyholders was visiting a PCW and to speak to a friend for advice.

The key channels used for purchasing underwritten whole of life assurance policies are insurer, broker/advisor, bank, and others. In 2022, the insurer channel remains the dominant accounting channel.

For more insights on the key channels in the underwritten whole of life assurance, download a free report sample

The UK Whole of Life Assurance - Behaviors and Attitudes

Guaranteed Acceptance Whole of Life Assurance:

Funeral costs and age have been the top purchasing triggers for customers in 2022. Funeral costs in the UK have increased considerably in the recent years, fueling demand for this type of policy. Burial fees have always been expensive in the UK.

In 2022, the proportion of customers attracted to purchasing a guaranteed acceptance policy due to the lack of a requirement to disclose medical information, sharply decreased by 9.8pp compared to 2021.

Underwritten Whole of Life Assurance:

Concerns over aging, getting a cash lump sum, and helping beneficiaries with funeral costs were the common purchasing triggers for whole of life underwritten insurance policies.

Guaranteed sum, and coverage for accidental death were among the other top features required by customers in a whole of life underwritten assurance policy.

The UK Whole of Life Assurance - Brand Selection

Guaranteed Acceptance Whole of Life Assurance:

Royal London, LV=, Sun Life (Phoenix Life), Legal & General, and Aviva are the top five providers of the whole of life guaranteed assurance in 2022. Aviva holds the top position in 2022 followed by Legal & General. The market shares of Aviva, SunLife, and LV= increased in 2022, while Legal & General recorded a decline due to increased competition from Aviva and SunLife.

Underwritten Whole of Life Assurance:

Royal London, LV=, Scottish Widows, Legal & General, and Aviva are the top five providers of the whole of life underwritten assurance market in 2022. Aviva retained its top position in 2022, followed by Legal & General. Aviva allows direct sale of standard policies online and offers a wide range of policies that are only available through advisors. It also provides additional benefits such as life change benefit, separation benefit and inheritance tax benefit at no extra cost, as well as health benefits, treatment support, and bereavement support through its Aviva DigiCare+ smartphone app for its customers.

For more insights on the major players in the UK whole of life assurance market, download a free report sample

The UK Whole of Life Assurance Market Report Overview

The UK Whole of Life Assurance Market Segmentation

Guaranteed Acceptance Whole of Life Assurance, by Channels

• Insurer
• Broker/FA
• Bank
• PCW

Underwritten Whole of Life Assurance, by Channels

• Insurer
• Broker/Advisor
• Bank

Scope

This report explores consumer purchasing preferences for whole of life assurance, as well as how they have changed over time. It identifies what is most influential to customers when purchasing a whole of life policy and reveals the most popular providers in the market. New trends and innovations are highlighted, as well as the key factors that will influence the market over the next few years.

Reasons to Buy

• Understand consumer purchasing decisions and how these will influence the market over the next few years.
• Improve engagement by recognizing what is most important to customers and how to 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 whole of life space and learn about new product innovations.
• Adapt your distribution strategy to ensure it still meets customer purchasing behaviors.