Advisers predict increasing demand for private medical insurance (PMI), income protection (IP) and life insurance in 2025, according to a survey by The Exeter.
Income protection saw the most positive sentiment with more than half (51%) of advisers expecting to see increased demand in 2025.
In contrast 31% predicted demand would be similar to 2024 while 18% of the 250 advisers quizzed expected to see a fall in demand.
For life insurance 44% predicted an increase in business, compared to 37% who expected demand to remain the same, and 19% who predicted a drop.
The results were positive but not as strong for PMI with 40% predicting continued growth in take-up, while 32% felt demand would stay the same with 28% predicting a dip.
According to figures the Health & Protection Individual and Business Protection Report, income protection sales have been the strongest performing in the last two years while much of the protection market has seen no growth or weak falls.
In contrast, the Health & Protection Individual Private Medical Insurance Report has reported three consecutive years of more than 11% growth in sales.
Reasons for growth
Advisers reported the greatest opportunities over the next 12-24 months would be around consumer awareness and specialised advice.
These were considered to be greater consumer awareness around the need for health or financial insurance (39%), streamlining operations by focusing on specialised advice (32%) and continued health service pressure (31%).
When considering which factors might create the biggest increase in demand for health and protection insurance in the next five years, the most common response from advisers was Economic growth and greater consumer spending capability (18%), followed by continued pressure on public healthcare services (17%) and increased adoption of technology and AI in insurance propositions (14%).
Only 9% of advisers felt that tax reductions, such as a reduction in Insurance Premium Tax, would have a significant effect on increasing demand.
Meeting demand
The vast majority of advisers across all UK regions were confident they would be able to meet the increased demand (92%) with 42% saying they felt very confident. Only 2% reported that they did not feel at all confident.
Confidence in meeting demand was high across all regions, but advisers in the Midlands and Northern Ireland were the most confident while the least confident advisers were from Scotland with a rate of 86%.
Steve Bryan, director of distribution and marketing at The Exeter (pictured) said: “It’s pleasing to see that advisers are confident about an increase in demand for insurance in the next 12 months.
“Just as pleasing is the overwhelming number of advisers who are confident of meeting this demand; something that insurers also need to be prepared for to enable clients to get the valuable cover they need as efficiently as possible.
“As we move through 2025 and beyond, it’s important that our industry continues to collaborate and makes the most of every opportunity that presents itself to increase awareness and uptake of protection and health insurance products.
“The outlook is hugely positive and building on the momentum we have created in recent years is key to protecting more people from the impacts of ill health.”
