FSA data show protection sales on the rise
The majority of protection products last year were sold through intermediaries while the biggest sellers were banks and building societies.
The City watchdog’s latest protection sales data showed 91 per cent of pure protection contracts in 2011/12 were sold through non-provider firms acting as intermediaries, while sales generally increased by 1.6 per cent, driven by critical illness.
According to the FSA, banks and building Societies accounted for 31 per cent of sales in 2011/12, followed by personal investment firms with 26 per cent.
The FSA said the increase coincided with a rise in mortgage sale to first-time buyers.
There were 601,305 pure protection contract transactions in 2011/12, according to the data, 80 per cent of which were critical illness as an add-on benefit, followed by income protection and standalone critical illness.
The figures also showed the number of provider and selling firms fell 1.9 per cent in 2011, while the top five providers accounted for 64 per cent of the market, the top 10 for 85 per cent and the top 15 for 96 per cent.