UK Income Protection Insurance: Distribution Dynamics 2024

This report explores how purchasing preferences have changed over time in the UK income protection insurance market. It discovers what is most influential to customers when purchasing an income protection 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 broker channel was the preferred choice among income protection customers, accounting for 36.2% of sales in 2024. Its share increased by 6.1 percentage points compared to 2023, while the share of second-placed insurers fell by 5pp. The size of the broker and bank channels in this line limits the reach of insurers, which helps explain this decline.

Scope

• Purchases via price comparison websites declined by 3.4pp in 2024.
• 10% of IP purchasers cited inflation and the cost-of-living crisis as the primary trigger in 2024. This supports our belief that consumers are increasingly aware of the benefits of IP, especially during a time when rent, mortgage payments, and food prices are rising while energy bills remain high.
• In 2024, Aviva maintained its position as the dominant provider of IP insurance in the UK with a market share of 35.2%. However, its share fell by 1.5pp in 2024.

Reasons to Buy

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