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Speaking at Cafe Royal on Tuesday, Mr Couchman told the audience of protection insurance specialists that the possibility of recession had given impetus to consumers to ask about protection products.

He said: "The credit crunch has been bad for most of the industry, however protection has been an exception to this rule.

"People need to think about how they can look after themselves in the worst situation."

Mr Couchman added the effects of tele-underwriting is also beginning to be felt in the protection industry, saying it would continue to bring palpable benefits to consumers.

Reviewing the protection business for the last year, David Heeney, chief marketing officer for Pacific Life Re, identified the key challenges, including building trust and avoiding excessive and detrimental legislation or regulation.

He said: "We need to grow new business, simplify the sales process and reduce rejected claims due to non-disclosure.

"The major changes taking place centre round non-disclosure. The Association of British Insurers gets a lot of criticism but I think it was a significant achievement to publish guidelines in this area and it should, therefore, be congratulated for the industry lead solution.

"This was achieved through proactive consultation and a coordinated industry initiative and is something to be proud of."

Other speakers included Mansel Aylward, chair of psychological medicine for the University of Cardiff, who described it as a "moral obligation" for people to be encouraged to return to work.

He said: "Research has shown for those who are out of work for more than six months, this is the equivalent to smoking 200 cigarettes a day in terms of health side effects.

"These statistics grab politicians' attention and help doctors and other health care professionals. And in my opinion this shows a moral obligation to facilitate the return to work."