A number of reports have been released this month pointing to the same conclusion ' there are great ...
A number of reports have been released this month pointing to the same conclusion ' there are great opportunities ahead for advisers working in the protection market. The Protection Review, a new annual market report, predicts strong sales, citing protection as the most successful sector of the insurance industry, with long-term sales up 60% in the last five years. Swiss Re also reported an increase in sales while Cahoot suggests there are signs of future growth, as the younger generation are becoming more aware of the need to protect. According to its survey, 30% of people under 35 are concerned about protecting the financial security of their families and realise they should get cover.
However, the same survey reveals only 16% of the same age group are concerned with safeguarding their income ' a vital level of protection. Swiss Life had similar findings in its survey, revealing two-thirds of people would struggle financially if they were off work for six months or more, yet only 8% of people considered income protection (IP) to be the most important cover. The Confederation of British Industry's annual employee absence survey revealing UK firms paid out £11.6bn to cover the cost of sickness absence last year, only highlights the need for group IP. Indeed, UnumProvident's research suggests employers' costs could be cut by up to 50% by developing effective sickness absence programmes. Regardless of all these findings, the success of both the group and individual protection market relies heavily on the innovation of product providers. The COVER Excellence Awards aim to encourage development by recognising the products and services that you, the adviser, believe are driving the market forward. To find out how you can register your vote, turn to page 20.
Kirstie Redford, editor
