This report provides an in-depth assessment of the term assurance market, looking at current and historical market size with regards to changes in contracts and premiums. It examines how term assurance products are distributed and highlights key changes in the competitive landscape, as well as the propositions of the key market players. The value of claims is also assessed. The report provides forecasts of market size in terms of new contracts and premiums to 2025, and discusses how the market, distribution, and products offered are likely to change in the future, as well as the reasons for these changes.
The term assurance market contracted by 5.6% to £516.6m in new business premiums in 2020, down from £547.6m in 2019. The contraction was linked to the economic implications of COVID-19. Non-mortgage-related term assurance was the only term assurance product to record an increase, up 3.3% in terms of new contracts sold in 2020. COVID-19 has highlighted the importance of engaging with customers through digital technology, as the majority of term assurance policies are sold through the independent advised channel.
– Legal & General is the largest player in the term assurance market with a 29.4% share in terms of contracts sold in 2019.
– Term assurance accounts for the largest share of the protection market at 74.1% of contracts and 71.5% of new business premiums.
– Insurtechs are starting to launch fully digital term assurance products. Incumbent insurers are following this trend by launching term assurance products that can be purchased via price comparison sites.
Reasons to Buy
– Examine the size of the term assurance market.
– Learn about the short-term and longer-term implications of COVID-19 on the market.
– Understand the influence of other factors on growth.
Legal & General
Table of Contents
Table of Contents
Background: The Protection Market
The Term Assurance Market
Product Launches and Innovations