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If ever there was a time for the UK’s life and pensions industry to demonstrate its all-important contribution to the UK economy it is now. Yes, right now. But do I hear sweet music emanating from the throats of those who sit in command of this magnificent industry encouraging all of us to protect ourselves against an uncertain economic future? Of course not. Not a dicky bird.

A couple of weeks ago, I had to prepare for a debate I was chairing at the Liberal Democrat Party Conference on improving choices for individuals at retirement. Sponsored by the Association of British Insurers, the debate featured Stephen Haddrill, director general of the ABI, Liberal Democrat Peer Lord Oakeshott and Sally Greengross, former boss of Age Concern, one of the nicest women you would ever wish to meet.

In doing my homework for this fringe meeting, I decided to have a root around the ABI’s website – something I confess, I would not normally do. Although not the most friendly of websites, it does contain some very impressive information which maybe, just maybe, the ABI takes a little for granted.

Fact one: the life insurance industry in the UK in the second largest in the world, accounting for 11 per cent of total worldwide premium income.

Fact two: it controls 15 per cent of investments on the UK stock market.

Fact three: last year, it paid out an impressive £211m a day in pension and life insurance benefits – comprising £193m to pensioners and long-term savers and £18m in death and disability benefits.

Fact four: last year, the general insurance industry paid out £59m a day in claims.

All very impressive numbers; all numbers I would be proud to boast about if I worked for the ABI or for one of its 400 member companies.

Before anyone accuses me of embarking upon another ABI duffing, I think the ABI has done some useful work in the last few months, especially on the issue of ensuring as many homes and businesses as possible are covered against the financial impact of floods. And I thought Mr Haddrill made some useful suggestions last week on the need to continue raising the standards of financial advice. I stand four-square behind his main proposals – namely a continued strengthening of professional qualifications, the setting up of a professional standards board for advisers to ensure skill levels are maintained, and the cost of advice

to be agreed between the adviser and consumer with no input from the product provider.

But on the key issue of protection insurance – the need for people to protect themselves against illness or unemployment – I do not think the ABI is doing enough. Admittedly, go to its opening page on its website and you can find a link related to economic uncertainty which then takes you off in the direction of more information on the different types of insurance:

payment protection insurance;

income protection insurance;

critical illness insurance;

private medical insurance; and

life insurance.

But it is all a little conservative, all massively understated. Dare I say it but for an association whose members were involved in endemic mis-selling, the whole protection insurance message is being massively undersold.

Instead, it is being left to some of the major players to carry the protection flag, players such as Legal & General who last week identified nine key life stages at which people need to review their protection needs.

Earlier this month, Tom Baigrie, managing director of Baigrie Davies and LifeSearch, suggested that it was high time the life insurance industry embarked upon a protection marketing campaign. He said this in the context of flat sales figures for term assurance, income protection and critical illness cover.

Mr Baigrie said: “Now, if you have a product you think everyone should buy and they are not buying it, you might consider developing a marketing strategy to promote its virtues and show people why they need or want it.

“If the product is one sold in lots of different forms by a whole industry of big businesses, none of which are succeeding as well as they could, you might decide on a generic campaign to awaken latent demand for the whole sector.

“An initial kickstart by all, which individual companies can segue into their own campaigns designed to stress the best points of each corporate marketer as they see fit.”

Mr Baigrie went on to say that until such a generic campaign is launched, the protection specialists will fail to grow the overall market for product insurance. Instead, they will simply muddle along, competing primarily on price rather than quality of product and hoping to grab a bigger share for themselves of a static market.

He ruled out the ABI as the organiser of such a campaign. But I do not agree. I think the ABI would be the ideal forum through which to launch such an initiative extolling the virtues of protection insurance. Indeed, I think it would herald a new dawn for the ABI and mark the transition of an association previously only interested in serving the interests of its members to one serving the best interests of consumers.

I know for a fact that there are those on ABI’s main board who would liketo make the association more consumer oriented. Well, a protection insurance campaign, promoting the less glamourous but worthy offerings of the life and pensions industry, would be a great starting point.

Given the awful financial events of the last year, is it not high time for less sex, blood ‘n thunder and more of the boring? So, move over toxic debt, it is time for boring old protection insurance to have its day.

Jeff Prestridge is personal finance editor of Financial Mail On Sunday