"The outlook is hugely positive, and building on the momentum we’ve created in recent years is key to protecting more people from the impacts of ill-health or injury."
- Steve Bryan, Director of Distribution & Marketing at The Exeter
Of those surveyed (250), 51% of advisers that advise on Income Protection (IP) anticipate heightened demand in 2025 – only 31% predicted more sales ahead of 2024. Notably, less than two in ten (18%) advisers expect to see a fall in demand.
This upward trend of optimism was also felt by those that advise on Life Insurance with 44% predicting heightened demand – 7% higher than ahead of 2024. Similarly to IP, roughly a fifth (19%) expect less sales.
Additionally, 40% envision demand for Private Medical Insurance (PMI); 32% thought PMI demand would maintain current levels whilst 28% foresee a dip in demand.
Discussing factors that might boost protection sales in the next five years, 18% of those surveyed said ‘economic growth and greater consumer spending capability’, followed by ‘continued pressure on public healthcare services’ (17%), and ‘increased adoption of technology and Artificial Intelligence (AI) in insurance propositions’ (14%).
Just 9% of advisers thought tax reductions – such as reduced Insurance Premium Tax – would have a significant effect on increasing demand.
Overall, 92% of advisers surveyed were ‘confident’ that they’d be able to meet an increase in demand for protection products, with 42% stating they felt ‘very confident’. Only 2% said that they ‘don’t feel at all confident’.
“It’s pleasing to see that advisers are confident about an increase in demand for insurance in the next twelve months. Just as pleasing is the overwhelming number of advisers who’re confident of meeting this demand; something that insurers also need to be prepared for to enable customers to get the protection they need as efficiently as possible,” explained Steve Bryan, Director of Distribution & Marketing at The Exeter.
“As we move through 2025, it’s important that our industry continues to collaborate and make the most of every opportunity that presents itself to increase awareness and uptake of protection & health insurance products. The outlook is hugely positive, and building on the momentum we’ve created in recent years is key to protecting more people from the impact of ill-health or injury,” he concluded.
