Focusing on the real risks customers face is how Guardian plans to help the protection sector hit three million new sales, according to Carlton Hood (pictured speaking), who took over as the insurer’s CEO in May.
Addressing a Meet the CEO event in the City of London, Hood told delegates about why the protection sector was ripe for change, how a focus on the real risks customers face can help it hit three million policy sales and about the three elements that attracted him to Guardian’s CEO role.
Ripe for change
“Guardian has those three elements that I love or have come to love in a business,” Hood said.
“It’s in a market that I think is quite ripe for some disruption, some change.
“And we look around us, we think about the market study, we think about AI, we think about the advice guidance boundary review and there’s quite a lot that could drive change.”
But Hood said he was “astonished” the number of protection policies sold every year has stayed at around two million for the past 10 years.
Swiss Re’s Term and Health Watch Report 2025 revealed that in 2024, 2,041,428 new term assurance, whole of life, critical illness and income protection policies were sold.
“Come on. Where’s the three million? How do we get there?” he continued.
“I think there is an under-covered population here and there’s need and I think innovation is something we’re going to have to meet.”
Focus on real risks
Elaborating on how the sector could hit three million protection sales, Hood described the growth of income protection as “really interesting”.
“In the mortgage industry as well there has been a shift from just term life to income protection,” Hood continued.
“What I like is that it is often focused on the highest risk that the customer is facing. I think back to how do we get to three million? More of that. Not necessarily more income protection, but more of a real focus on the real risks for customers.”
Hood maintained that the biggest barriers to purchase protection customers face is ignorance.
“We can help people to become aware, but some of it is they don’t think it will pay out,” he added, “the idea that it is a waste money.
“So finding cover that is tailored to the risks that people perceive and when they need it, it pays is absolutely critical reputationally for the industry.
“That is what we tried to do with critical illness at Old Mutual, that is what Guardian is trying to do with its products now, so more of the same.”
Wealth management
Hood added he would also like to look at the link between the protection and wealth management industry.
“I think it’s holistic,” he continued, “It goes together. People’s income is often the biggest asset they have to protect and it’s underinsured. So I think that will be absolutely critical.”
But artificial intelligence (AI) also presents opportunities, he added.
“But AI gives us an opportunity to innovate and make things easier – both from an underwriting and a claims perspective,” he continued.
“Things like the advice guidance boundary review which gives us the opportunity for people to go further down an advice journey online is an interesting area that we should be engaging with actively.”
Loves a scale-up
Touching in why he joined Guardian, Hood maintained he loves a scale-up.
“I’m not a garage entrepreneur,” Hood continued.
“I take my hat off to those who start off at the beginning. Thank you.
“But I love this moment, it’s the classic curve: you come out with a product, you grow, you expand, you then maybe need to cut back a little bit and pivot to profit.
“This is the classic growth trajectory for businesses in that scale-up phase like Guardian – it’s a very exciting time to be joining.”
Real hero
Though Hood also pointed out he loves a customer focused brand and the cover upgrade promise.
“First of all, the cover upgrade promise that we have and cover upgrade that we’ve put out this year, I love the fact that we have focused on small, incremental changes that will make a difference to how we meet claims for customers,” Hood said.
“Is it five new categories, 24 upgrades? But most important in the cover upgrade is the promise that underpins it.
“The promise to customers that we will honour their claim on the best of either when they joined or what they have now. And we’ve made that accessible to customers and advisers as well so you can see how the cover upgrade promise can deliver that assurance for your clients and that is I think still unique in the industry.
“Others may have tried to copy and failed and that is in the heart of what Guardian is seeking to do.”
And Hood added the real proof positive was this year’s claims report.
“Again, 100% of life insurance claims, 100% of children’s critical illness claims covered, 94% of terminal illness,” he added.
“But the figure I like most in there is 56% of our terminal illness claims paid would not have been paid under the statutory industry definition and that really stands out for me as something really exceptional.”
