The Income Protection Task Force (IPTF) launched its annual education week for 2024, Income Protection Action Week (IPAW). The event kicked off with an overview of the income protection (IP) market, featuring insights from industry experts and advisers.
Market Growth and Financial Resilience
IPTF co-chair Andrew Wibberley shared that, despite slow growth in other areas, the IP market showed promising progress. Co-chair Jo Miller highlighted the need to increase IP coverage across the UK, especially as financial resilience becomes more critical due to the ongoing cost-of-living crisis and high levels of long-term sickness.
Recent data from the FCA Financial Lives research underscored the financial pressures people face. The report showed that 77% of individuals had worked extra hours just to make ends meet, while 23% had relied on their savings for everyday expenses. Additionally, the Association of British Insurers (ABI) reported record-breaking IP policy sales in 2023.
Shifting Client Demands
Advisers attending IPAWs first event had observed a growing interest in income protection over the last year, particularly among younger clients. One adviser noted that clients were becoming more aware of IP, thanks to social media, and were actively seeking out information on what it entails beyond traditional life insurance.
Another adviser emphasised the rising demand for value-added services, such as 24/7 virtual GPs and wellness discounts, which were particularly popular among families and fitness-conscious individuals. Clients are increasingly focused on health and well-being benefits that complement their protection policies.
However, a common theme among advisers was the importance of keeping IP explanations simple. One expert warned that overcomplicating the conversation can turn clients off, advising instead to focus on clear, concise explanations.
Impact of Consumer Duty
The event also addressed the impact of Consumer Duty on adviser behaviour. Keith Richards, CEO of the Consumer Duty Alliance, urged businesses to streamline processes and remove unnecessary steps that don’t benefit the client. By focusing on what truly delivers value, companies can enhance customer outcomes and comply with evolving regulatory standards.
Overall, IPAW’s week of events provided valuable insights into the IP market’s growth and evolving client needs, while reinforcing the importance of clarity and customer-centric approaches in financial services.
If you were not able to attend the live events, you can download some fantastic supporting resources and watch them all here.
