Advice firms predict protection market growth
9 April 2019
Adviser firms are predicting growth in the protection market, but are split over how to expand the market, a new survey has shown.
The study from MetLife UK found advisers expect sales of individual protection to grow by 18% over the next two years.
Almost two out of five (38%) say there is a definite opportunity to help more customers over the next 24 months, while 40% say there could be.
However, the research also highlighted adviser concerns about potential roadblocks to market expansion, with worries about affordability and the relevance of products to everyday lives cited as the biggest issues.
More than two thirds (67%) of advisers said clients would be more interested in individual protection policies if they were more affordable and the same number said clients did not believe they would need them.
Richard Horner, head of individual protection, MetLife UK, said: “The individual protection market is seeing strong growth and the optimism among advisers about opportunities to grow the market is very welcome. There are, however, significant concerns advisers are hearing from their clients about the relevance of existing products available and issues about affordability and claim payments which providers need to address.”
Advisers said more than half (51%) of prospective customers shy away from buying protection policies because they are concerned about providers’ claim records, while 56% warned that clients do not believe the current range of products is relevant to them.
Horner added: “The reality is that there are affordable product options and the risks that they cover are part of everyday lives, while the industry’s record on claims is strong with providers committed to making the claims process straightforward and paying claims in a timely manner.”
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