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Advised protection market predicted to grow

14 May 2020

Almost two thirds of advisers (65%) expect the advised protection market to grow substantially in the next two years.

New research by HSBC showed advisers specialising in individual protection forecast 14% growth for the market and their own firm’s protection sales by 2022, as individuals look for greater security as a result of the Covid-19 crisis.

Critical illness insurance is expected to experience the biggest growth, with half of advisers (50%) expecting sales to benefit from the expanding market, followed by income protection insurance (47%).

Advisers also expect to see protection policies grow in popularity among the self-employed, with two in five (41%) expecting to see sales among this segment of the market receive a boost.

Yet despite 61% of advisers acknowledging that cover is regarded as a necessity by many customers, less than two out of five (38%) believe policies are seen as affordable.

Mike Hussain, CEO, HSBC Life, said: “The cover that protection offers customers is increasingly seen as invaluable with people recognising that looking after themselves and those they love is a vital investment. Recent events have only served to underline this thinking.

“It is interesting that so many advisers at this time are optimistic about growth in the advised protection market despite the uncertainty and that they believe critical illness and income protection are likely to be the biggest opportunities for growth over the next two years as the protection market expands. 

“Advisers are resilient and adaptable and are seeing there is an opportunity to demonstrate their value and expertise to customers, while also growing their own businesses supporting customers in protecting what is valuable to them.”

Professional Paraplanner