UK Whole of Life Assurance: Distribution Dynamics 2024

UK Whole of Life Assurance: Distribution Dynamics 2024

Summary

This report explores consumer purchasing preferences for whole of life assurance, as well as how they have changed over time. It identifies what is most influential to customers when purchasing a whole of life policy and reveals the most popular providers in the market. New trends and innovations are highlighted, as well as the key factors that will influence the market over the next few years.

In 2024, the insurer channel led the guaranteed acceptance whole of life segment, accounting for 38.9% of sales. However, this was a notable decrease from 52.7% in 2023. The insurer channel has traditionally been the preferred distribution channel for guaranteed acceptance, largely due to the straightforward nature of the product-with most policies purchased to cover funeral expenses.

Scope

• The insurer channel maintained its dominance in the underwritten segment, accounting for 44.6% of new policies in 2024. However, its share has declined from 50.9% in 2022, with gains made by all other channels over the review period.
• In 2024, consumers reaching an age where they felt they should have a guaranteed acceptance policy was the key purchasing trigger, as cited by 20% of policyholders. This factor experienced a 6.6 percentage point increase compared to 2023, highlighting the UK’s aging demographic. Office for National Statistics data indicates that 19% of the UK population were aged 65 or older in 2022, which is projected to increase to 27% by 2072.
• In 2024, the top five guaranteed whole of life providers accounted for 69.7% of the market. Market leader Aviva’s share saw a significant 8.2pp rise in 2024.

• Understand consumer purchasing decisions in the whole of life assurance space and how these will influence the market over the next few years.
• Improve customer engagement by recognizing what is most important to them and how to adapt products and services to meet their needs.
• Compare the Net Promoter Scores of key insurance providers.
• Discover which providers lead the way in the whole of life space and learn about new product innovations.
• Adapt your distribution strategy to ensure it still meets customer purchasing behaviors.