A third of the industry believes comparison sites will be the most popular way to buy protection in a decade, while 66% expect fewer IFAs selling protection, according to the Protection Review.
The Protection 2021 survey - the Review's industry wide survey on what the market will look like in ten years time - and published in the Protection Review 2011 book today, found a remarkably pessimistic picture.
Over half the industry expects to still be relying on doctor's reports for underwriting in a decade, again over 50% believe the majority of sales will be non-advised and almost a third say a generic advertising campaign would provide the biggest boost for the industry.
Kevin Carr, chief executive of the Protection Review, commented: “This pessimistic view is inevitable when one considers the marketing budget of the comparison sites when compared to the money spent by the advice industry. The conclusion comes as no surprise to many.”
Further findings, from Partner Re, also published in the book, discovered the protection insurance industry is expecting that severity based payments will be the most likely change we will see in critical illness cover over the next 5 years.
The reinsurer found 46% of providers are considering the change.
In addition 60% said they are well prepared for the introduction of the new gender based ruling, while 25% thought the ABI's Total and Permanent Disability review had not achieved its objectives.
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