UK protection and health insurer, The Exeter, has today released new findings from a nationwide survey of the UK’s insurance advice community with key statistics noting adviser expectations for 2025.
More advisers optimistic about income protection demand in 2025
According to the report, advisers predict a marked increase in demand for health insurance, income protection and life insurance products in 2025.
Over half (51%) of advisers surveyed who advise on income protection anticipated that demand would rise in 2025, compared to only 31% who predicted that demand would be similar to 2024. Only 18% expected to see a fall in demand.
The same trends were evident for those surveyed who advise on life insurance. The most common sentiment amongst these advisers was that demand would increase in 2025, with 44% predicting this, compared to 37% who expected demand to remain the same, and 19% who predicted a drop.
For those surveyed who advise on private health insurance, the most common response was that consumer demand would continue to increase, with 40% predicting this. 32% felt demand would stay the same with 28% foreseeing a dip in demand.
Drivers of demand
When considering which factors might create the biggest increase in demand for health and protection insurance in the next five years, the most common response from advisers was ‘Economic growth and greater consumer spending capability’ (18%), followed by ‘continued pressure on public healthcare services’ (17%) and ‘increased adoption of technology and AI in insurance propositions (14%).
Only 9% of advisers felt that tax reductions (such as a reduction in Insurance Premium Tax) would have a significant effect on increasing demand.
Advisers confident of meeting demand
Notably, advisers in the UK agreed that demand would either hold strong or grow. Moreover, 92% of advisers surveyed were confident that they would be able to meet an increase in demand for insurance from their clients, with 42% reporting they felt ‘very confident’. Only 2% reported that they did not feel at all confident.
The full regional data is presented below:
| Region | Percentage of advisers confident in meeting a rise in demand |
| The North | 98% |
| The Midlands | 100% |
| The South & London | 89% |
| Scotland | 86% |
| Wales | 92% |
| Northern Ireland | 100% |
Figure 1: Confidence of advisers by region in being able to meet an increase in demand for insurance from their clients.
The survey also touched on where advisers saw positive changes in the market that would drive further business for their firms. According to the sample, the greatest opportunities for advisers over the next 12-24 months were considered to be ‘greater consumer awareness around the need for health/financial insurance’ (39%), ‘streamlining operations by focusing on specialised advice’ (32%) and ‘continued health service pressure’ (31%).
Steve Bryan, Distribution and Marketing Director at The Exeter, commented:
“It’s pleasing to see that advisers are confident about an increase in demand for insurance in the next twelve months. Just as pleasing is the overwhelming number of advisers who are confident of meeting this demand; something that insurers also need to be prepared for to enable clients to get the valuable cover they need as efficiently as possible.
As we move through 2025 and beyond, it’s important that our industry continues to collaborate and makes the most of every opportunity that presents itself to increase awareness and uptake of protection and health insurance products.
The outlook is hugely positive and building on the momentum we have created in recent years is key to protecting more people from the impacts of ill health.”
ENDS
Notes to Editors
Methodology
This research was conducted by The Exeter between 12/11/2024-18/11/2024, surveying a sample of 250 UK financial advisers discussing insurance products with their clients.
Where a regional split has been explored, The Exeter has grouped regions as follows:
• ‘The North’: North East, North West, Yorkshire & The Humber
• ‘The Midlands’: East Midlands, East of England, West Midlands
• ‘The South’: South East, South West, Greater London
About The Exeter
The Exeter is a leading health and life insurance provider who have supported UK families in the event of ill health or injury since 1888. Formerly known as the Exeter Friendly Society and Pioneer Friendly Society, The Exeter is a mutual friendly society. This means it’s owned by members and run for their benefit.
The Exeter is a trading name of Exeter Friendly Society Limited, which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (Register number 205309) and is incorporated under the Friendly Societies Act 1992 Register No. 91F with its registered office at Lakeside House, Emperor Way, Exeter, England EX1 3FD.
PR Contact
Tom Stewart-Walvin, Rostrum