Nine in 10 advisers think income protection (IP) sales will grow over the next five years.
This is according to the Protection Distributors Group’s (PDG) Protection Insights Report 2026.
The report reveals 89% of respondents believed the trend for more IP to be sold will continue for the next five years, with 72% citing a shift in attitudes regarding consumers protecting their earnings as responsible for the IP sales boom.
This was followed by 47% who selected an increase in adviser knowledge, 34% who thought that the products felt more appropriate to 2025’s challenges, and 25% attributed more sales to increased use of short-term products.
The survey was conducted in October 2025 ahead of the Financial Conduct Authority (FCA) releasing its interim report on its ongoing Pure Protection Market Study at the start of the year.
A total of 322 professionals responded, roughly three quarters of whom were advisers, with other respondents including managerial, compliance and paraplanning roles in firms which offer protection advice and protection products to their clients.
Market Study
Excluding don’t knows – 30% of firm principals of those polled were worried about a heavy-handed approach from the FCA in the wake of the market study.
The majority claimed the important thing was to get people covered and so any regulatory shift needed to be careful not to reduce the number of people covered.
Around 11% thought protection and some practices associated with it were due a regulatory review, while 4% felt there was not enough competition in the market.
Other significant findings from the research and report revealed 66% of advisers surveyed thought wealth advisers did not recommend enough protection and 69% of advisers saw Consumer Duty as a positive for clients.
More than two thirds (68%) saw tight budgets as the biggest challenge for clients. This ranked ahead of the 40% who opted for a belief among clients that they will not need to make a claim.
Elsewhere, three quarters (75%) of respondents thought the welfare burden could be reduced if more was done to demonstrate to the public that being protected can reduce reliance on the state.
Some concerns and room for improvement
Emma Thomson, chairwoman of the PDG (pictured), said: “This survey has given us valuable insight into how advice firms view our market. It’s positive to see a level of optimism about protection and rightly so given the good work our industry does for so many customers and their loved ones, but there are some concerns and there is room for improvement.
“Underwriting delays came out as the biggest barrier to writing protection. It is not the sole barrier, of course, but was the most frequently selected option.
“Most people want to grow the protection market, but we will struggle to achieve that if the process for arranging cover is not made simpler for both applicants and advisers so that more consumers can access valuable cover.”
More positively, Thomson said it was encouraging to see adviser views on Consumer Duty and that respondents were bullish about life sales due to coming pension and inheritance tax (IHT) changes and the belief the trend for more income protection sales will continue.
“It is also notable that advisers see wider public understanding of protection as part of the solution to the growing welfare burden,” Thomson continued.
“Our members are keen for the market to grow and for more consumers to benefit from protection products.
“The FCA has stated in its interim report that a key concern is the protection gap, and improving access to insurance as well as consumer awareness will help to close this gap.
“A holistic approach from policymakers and regulators that take in the need to get more people covered, would be good news for us all.
“We hope this research and report helps inform debates about the future of the protection market.”
