State needed to support protection sector: Zurich

According to Mr Shaughnessy, the government should help to raise awareness of the protection market, given that income protection products can help save the state in terms of payouts. He added: “There is an interest in the state being prepared to support that market.”

Mr Shaughnessy said that although economic conditions had generally been difficult, the protection market had fared relatively well. He added: “The protection market has been reasonably strong. Part of that reflects the fact that the housing market has been strong. I think the market is growing, but not as fast as it should be.”

His comments came as Zurich UK unveiled its 2014 results, in which the company’s UK life division revealed an operating profit of £115m, up 6 per cent on the previous year.

However, its new business margin of 13.6 per cent was 2.8 per cent lower than the year before, which the company said was still “favourable when compared with the market”.

Fellow life company Ageas UK revealed a 2014 net profit of £94.7m, compared to £85.2m in 2013.

However, its total income was £2.097bn, down from £2.116bn in 2013, which Ageas UK blamed on lower market average premiums.

In life protection, Ageas UK’s total gross written premium inflow increased from £91.8m in 2013 to £110.9m.

Andy Watson, chief executive of Ageas UK, said: “In a year when the industry faced a number of challenges, I am pleased to report that we have ended 2014 in good shape.

“We have made strong progress on the integration of our two insurance businesses, giving brokers a greater product choice in both personal and commercial lines.”

Adviser view

Tom Conner, director of East Sussex-based Drewberry, said: “We have not noticed much difference in the past three years in the protection market. We want to see insurers put their hands in their pockets and try to engage the public.”