Income protection sales surged by 17 per cent last year amid a rise in new business across a whole range of insurance products.
Mortality cover was up by 1.5 per cent, while critical illness protection increased by 5.2 per cent on 2015, according to reinsurer Gen Re’s latest Protection Pulse report.
The figures show the protection market grew by 3.9 per cent in total last year, despite a slowdown in the fourth quarter.
Jules Constantinou, Gen Re life and health regional manager for UK and Ireland, said: “It’s great to report such positive news.
“We had been on tenterhooks to see whether the strong growth we reported for the first half of 2016 was going to continue until the end of the year.
“Q3 did not disappoint, although unfortunately Q4 turned out to be the fly in the ointment, with sales falling against the same quarter in 2015. So, while the overall trend looks very positive, we need to make sure Q4 was just a blip.”
Tom Conner, director at London-based Drewberry Insurance, commented: “It's positive to see the protection market grow as a whole and particularly great to see continued double digit growth in income protection sales.
“However, any substantial growth for income protection comes from a low starting point in relation to life and critical illness cover, so a lot more work is needed to educate both advisers and the public on the importance and priority given to this vital policy.”
The report has been launched ahead of Gen Re’s annual ReGenerate conference, which takes place in London on Wednesday, 10 May.
simon.allin@ft.com
