subject: Uk Protection 2010 Now Available At Reportsandreports [print this page] Dallas, TX: ReportsandReports announce Japanese UK Protection 2010 Market Research Report in its Store.
The protection market will see improvements at a time when the economy is at a pivotal point of recovery. Consumers are more financially aware of risks in the aftermath of the financial which will have a positive effect on the uptake of protection products.
Scope
Sizes the UK protection market and identifies lucrative consumer segment opportunities for providers.
Highlights barriers to entry into the protection market for consumers and assess strategies to combat these barriers.
Identifies the top competitors and distribution channels of the UK protection market.
Highlights
Consumers have become more financially aware given the financial crisis however they lack understanding of the product and where to seek advice. Advisors are perfectly positioned to educate consumers in hedging protection risks.
Reasons to Purchase
Understand of the size, shape and key drivers of the protection market.
Gain invaluable insight in to the latest innovations and developments in the market
Access Datamonitors forecasts for the market and distribution channels and gain valuable understanding of market development.
Table Of Contents
Overview
Catalyst
Summary
Executive Summary
The protection market continued to contract in 2009
Providers need to innovate products and improve clarity in order to attract consumers
Regulatory issues will impact on the protection market
IFAs are the dominant channel, but non-intermediated channels are forecast to increase
Table of Contents
Table of figures
Table of tables
Market context
The full suite of protection consists of five main types of products
Whole of life policies have guaranteed payouts
Term assurance is the most basic form of life assurance
Critical illness products provide a helping hand in difficult circumstances
Income protection products provide an income stream in times of need
Long-term care Insurance
New business in the protection market has seen a decline of 0.5%
Whole of life has maintained 2008 levels despite a contacting protection market
Savings related term assurance continues its upward swing of growth in 2009
Sales of IP have fallen by 8.5% compared to the previous year's new business
Standalone CII is losing popularity among consumers
CII as a rider to term assurance accounts for a majority of the market
Long-term care accounted for only 1.3% of the protection market new business premiums in 2009
The total protection market is forecast to grow at a CAGR of 1.2% between 2010 and 2014
Mortgage related term assurance
Savings related term assurance will return to pre-recessionary levels
Whole of life will peak in 2011 before declining thereafter
Income protection will experience low growth of 1.5% over 2010-14
Critical illness
CII as a rider to term assurance will see growth of 5% from 2010 to 2014
Market issues
Providers need to encourage consumers to engage in the protection market
The UK protection gap grew alarmingly to 2.4 trillion in 2009
Attempts to engage the consumer have failed as consumers continue to undervalue protection products
Providers should encourage consumers as they become more proactive in their financial situation
Consumers believe that they do not need protection products
Consumers' motivations for engaging with protection tend to hinge on key life events
Providers need to explore alternative channels to engage consumers
Different age groups have different benefits for providers
Providers need to explore alternative ways to attract consumers
Consumers are devaluing the product
Aggregators draw consumers' attention to price rather than the suitability of the product to their needs
Providers need to focus on product innovation to attract consumers
Aviva offers free life cover to new parents
Benefits to the consumer
Why offer one year's free life assurance?
Providers who prepare for regulatory changes will stand in good stead for the near future
The RDR is on track for 2012 despite the FSA's dissolution
The dissolving of the FSA will impact on the regulatory landscape of the protection market
Providers should not undervalue LTCI as a protection product
Insurers must seek stronger reoccurring inflows
Competitor Dynamics
L&G wrote the highest proportion of new term assurance business in 2009
Royal London Mutual moves is top for new business premiums in the critical illness market
CIS writes the highest level of new business for WOL to knock Forresters into second place
HSBC commands the IP market having written 8.6m APE in 2009
Distribution Dynamics
IFAs are the major distribution channel
What are the distribution channels?
IFAs play a key role in the education of consumers
Aggregator sites challenge IFAs
Aggregator sites are changing the distribution landscape
IFAs need to keep up with the advances in technology and its impact on the protection business
An increase in price competition through aggregator sites is squeezing profit margins
Non-advised sales are detrimental to the consumer experience
Consumers have reasons to mistrust the protection market
Consumers find protection products confusing
The future of distribution channels
Non-intermediated channels are set to increase
Bancassurance has failed to challenge dominant IFAs
APPENDIX
Definitions
Critical illness
Income protection
Term assurance
Convertible term assurance
Decreasing term assurance
Increasing term assurance
Level term assurance
Mortgage related term assurance
Pension term assurance
Renewable term assurance
ABI definitions of distribution channels
Independent financial advisors (IFAs)
Direct sales forces
Tied agents
Multi-tied agents
Bancassurance
Direct marketing
Telesales
Other
Further reading
Ask the analyst
Datamonitor consulting
Disclaimer
List of Tables
Table 1: Protection products, new business premiums (m APE), 2005-09
Table 2: Total regular premiums adjusted for rider products, new business premiums (m APE), 2005-09
Table 3: Forecast protection market, new business premiums (m APE), 2010-14
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