Rising self-employment and the gig economy is a potential source of growth in the next two years for the advised protection market, according to a survey of advisers.
HSBC Life found 41 per cent of advisers surveyed believed the growth of the gig economy would boost sales of advised protection products, while three in 10 believed the self-employed would fuel such sales over the next two years.
The research also found advisers who specialised in individual protection predicted a 14 per cent growth for the advised protection market by 2022, as well as their own firm’s protection sales.
Mark Hussein, CEO of HSBC Life (UK), said the firm had recorded a 30 per cent rise in visits to its life insurance webpages, which emphasised “increased awareness and demand for protection products and reinforcing the opportunity for advisers”.
Half of advisers surveyed also predicted that critical illness insurance would see the largest expansion in sales, followed by income protection as identified by 47 per cent of advisers.
Additionally, the data found that advisers had seen an increasing recognition among clients of the importance of protection, with 61 per cent saying it was considered ‘very necessary’ by many of their clients.
However, according to the research growth in the sector could be impacted by the perceived cost of policies, as only 38 per cent believed that policies were seen as affordable.
Robyn Allen, director and adviser at Robyn Allen Solutions, said: “As a firm specialising in protection we’ve already seen a change in clients’ habits and they’re being much more proactive when it comes to making sure their covers are right for them.
“When it comes to people’s perceptions on affordability it’s our job as advisers to find a solution that is tailored to their circumstances, including budget, which takes the concern away from the client. We need to help educate people.”