The head of portal for financial services technology supplier Avelo said that advisers also believed that better and more effective financial education was an important factor in preventing protection sales from falling.
Mr Miller said: “Falling protection sales are a major issue for the industry, and a recent survey we did shows that product design and financial education have the capability and backing to lead the way and help revitalise the market.”
In more general terms, the spot poll of advisers on Avelo’s online comparison quote and transaction exchange found that 49 per cent suggested that life insurance was the most popular product this year.
Surprisingly, perhaps, 21 per cent of advisers suggested that mortgage protection products were in the greatest demand in 2013, a possible function of the rising level of mortgage applications and sales so far this year.
Adviser view:
Mark Loydall, director of Cambourne Financial Planning, in Loughborough, said: “I don’t think it’s a question of simpler underwriting but rather of the fact that underwriters appear to be getting more nervy about writing policies in the first place.
“Our experience is that the appetite to write these policies is diminishing in general, perhaps because margins are so slight already. On the education side, the biggest knowledge mismatch is about how much the state would contribute to the overall life insurance mix, so that is the first thing that should be addressed.”
Key statistics
49% - adviser claims that life insurance is most popular
21% - adviser claims that mortgage protection is most in demand
