Business protection expected to slow down
The majority of advisers are not optimistic about the immediate future of the business protection market, according to new research from Aegon.
A survey of 100 advisers revealed the majority (71%) thought there would be little or no growth in the business protection market over the next three years. In contrast, just 2% thought the market would grow substantially, 22% thought there would be a slight or substantial decrease and 5% were undecided.
Stephen Crosbie, proposition development manager for individual protection at the provider, said he thought that the results showed that advisers believed that business owners will be more aware of the risks that come with not having the right protection in place.
He added that advisers thought businesses would therefore be more receptive to the idea of purchasing the products.
Crosbie continued: "There are around 4.7 million private sector businesses in the UK, with a potential business protection market of around £500m." Aegon said it believed that small and medium sized enterprises, which make up 99.9% of all UK businesses, would be more vulnerable in the current financial crisis.
"With advisers facing challenging market conditions, the business protection market can help bring in new income streams. We have been actively helping advisers understand this potentially lucrative market."
He concluded: "We have recently completed a series of interactive business protection workshops across the UK which were designed to equip advisers with the knowledge and tools they require to confidently enter into this market."
