Sales of protection products spiked in the first quarter of the year, reaching record highs not seen since the £145.1m in the last quarter of 2012, according to Equifax Touchstone.
The intermediary database provider collated figures from all the main protection product providers, finding protection sales for the first quarter of 2016 stood at £118.4m, up £7.2m (6.5 per cent) on the same period last year and £1.3m (1.1 per cent) on the previous quarter.
Term assurance accounted for the largest portion of sales for the quarter, at £46.3m (39.2 per cent), followed by term assurance with critical illness, bringing in £24.1m (20.3 per cent) of sales.
Critical illness saw the biggest increase in sales quarter-on-quarter, increasing 14.8 per cent (£1.3m) on the last quarter of 2015 while mortgage term sales saw the biggest decline, dropping 6.8 per cent (minus £1.4m).
Quarterly Breakdown by Type of Cover
Type of cover
Term with critical illness
Whole of life
Geoff Greensmith, director at Equifax Touchstone, called it a “solid start to the year” for protection sales, driven by a strong uptake in critical illness and term assurance policies.
He said: “Unsurprisingly, mortgage term sales have lagged behind following a reduction in mortgage applications at the end of 2015. This trend may also continue into the next quarter given the rise in stamp duty for buy-to-let properties, which came into effect on 1 April this year.”