This report focuses on the UK’s term assurance market in the context of the wider protection space. It provides an in-depth assessment of the term assurance market, looking at current and historical market size with regards 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 contracts and premiums to 2024, and discusses how the market, distribution, and products offered are likely to change in the future, as well as the reasons for these changes.
The term assurance market experienced another year of growth in 2019, driving growth of the wider protection insurance market. Growth of non-mortgage-related policies outperformed mortgage-related policies. Independent financial advisors play a key role in the distribution of term assurance, but direct sales have gained momentum in recent years as more customers have chosen to buy life cover independently and online. COVID-19 has caused disruption, leading life insurers to adjust their underwriting guidelines. In the short term, sales are anticipated to fall.
– The term assurance market grew in 2019 to reach £541.0m in new business premiums and 1.6 million contracts as uncertainty due to Brexit dissipated.
– The largest five players controlled 76.0% of the market in terms of contracts sold in 2018. Legal & General is the largest player.
– COVID-19 will temporarily halt growth of the term assurance market. New business premiums for both mortgage-related and non-mortgage-related term assurance will contract before returning to growth. Meanwhile, claims will be comparatively high.
Reasons to Buy
– Examine the size of the term assurance market.
– Learn about the short-term and longer-term implications of COVID-19 on the market.
– Understand the influence of other factors on growth.
Legal & General
Table of Contents
Table of Contents
1. Background: The Protection Market
2. The Term Assurance Market
3. Market Drivers
Impact of COVID-19
4. Product Launches & Innovation
5. Competitive Landscape