UK Protection Insurance 2024: Term Assurance

This report 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 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.

The term assurance market declined in 2023, with both premiums and contracts falling. This was driven by mortgage-related term assurance contracts and premiums, caused by a weak mortgage lending market due to the high mortgage rates present throughout the year. This made house purchases unaffordable for many individuals, especially with the cost-of-living crisis and inflation putting pressure on budgets.

Scope

• 41.2% of consumers are concerned about maintaining their current lifestyle amid the cost-of-living crisis.
• 31.4% of respondents are comfortable using AI-powered chatbots for policy-related issues, while 45.3% are not, indicating a degree of skepticism among individuals.
• Online/digital purchases of term assurance policies increased, with 61.3% of policies bought through digital channels in 2023-up by 1.7pp from 2022.

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