Health and life insurer The Exeter has released new data showing that rising business costs have become a significantly greater challenge for advisers in 2026, while confidence in demand for protection products has improved compared with 2025.
Health insurance shows the clearest improvement in adviser sentiment. More than a third of advisers writing health insurance expect demand to increase in 2026 (37%), a marked change from 2025 when over one in five anticipated a fall in demand (21%). Half of advisers expect demand to remain the same (50%).
Despite this confidence, advisers writing health insurance continue to face cost pressures. Nearly four in ten cite the increased cost of doing business as their biggest challenge in 2026 (38%), up from 32% in 2025. Pressure on consumer finances is also a key concern, highlighted by more than a quarter of advisers writing health insurance (28%).
Meanwhile, demand for both income protection and life insurance is expected to continue in 2026. More than half of advisers expect demand across both product lines to remain stable, with around a third anticipating growth.
However, advisers writing income protection and life insurance face similar challenges. Rising business costs remain the top concern, averaging around 36% across both products. Affordability pressures for consumers also feature strongly, with around 30% highlighting financial strain as a barrier.
Regulatory change is another shared theme, highlighted by 32% of advisers across both products, which reflects the FCA’s ongoing work, including the Pure Protection Market Study expected to conclude in 2026.
"Advisers are facing a combination of challenges at the moment, from rising costs within their own businesses to ongoing affordability pressures for their clients, and that’s not something to underestimate," Steve Bryan, director of distribution and marketing at The Exeter, said. "What’s encouraging, though, is they continue to adapt and find ways through those challenges, keeping insurance firmly on the agenda.
"We’re seeing that particularly in health insurance, where confidence in demand remains high as advisers respond to ongoing concerns around access to care and treatment waiting times. If advisers are continuing to overcome obstacles, insurers need to ensure that we’re doing our part to back that effort and help them deliver the best outcomes for their clients."
