The number of individual income protection policies has increased for the first time since 2007, according to the Association of British Insurers.
The data showed that in 2015 there were 1.15m individual income protection policies in force, a 2 per cent increase compared to 1.13m in 2014.
Meanwhile the growth in the group income protection market continued with the number of people covered by their employer increasing by 3 per cent on the previous year.
The ABI has said the growth in income protection is due to the industry raising awareness and improving understanding of income protection, including its work with the Money Advice Service and the Seven Families campaign.
Raluca Boroianu-Omura, ABI head of protection and health, said: “We’re very pleased that more people are benefitting from income protection, which provides vital support for people who are unable to work due to illness or injury.
“Every year, one million workers find that they are unable to work due to ill health, and income protection can act as an essential safety net by paying a replacement income, but also helping people back into the workplace earlier with rehabilitation services.
“This new data is encouraging, but there is work to be done to improve the take up of income protection so more people can benefit.”
When asked whether the first increase in individual income protection since 2007 might mean workers are worried about losing their jobs, a spokesman for the ABI declined to comment.
They said the move was generally positive as more people now have cover.
He said: “People in this country are still underprovisioned for the impact of a sudden loss of a wage so increasing the take-up of income protection is something we very much welcome.
“It means there will be less reliance on the state at the very time when state provision is under pressure like never before.”
