Boston, MA -- (ReleaseWire) -- 02/05/2014 -- New business premiums in the term life assurance category grew by 7.7% in 2012, accompanied by an increase in mortgage-related protection sales. Term life assurance (excluding accelerated critical illness benefit) dominated the UK long-term protection market, accounting for 26.8% of the total new business regular premium in 2012. Household finances continued to be squeezed, which reduced the demand for discretionary term life and other protection products. The fall in mortgage lending led to a decline in sales of term life policies taken out with interest-only or repayment mortgages. The term life assurance category remained resilient, however, recording a compound annual growth rate (CAGR) of -2.53% during the review period (2008-2012).
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Level-term assurance products, offering the same level of cover throughout the period of the policy, accounted for 72.2% of the total term life new business premiums. Decreasing-term assurance policies, usually purchased by individuals who may only wish to protect their mortgage, represented 27.8% of the total new business premiums. Despite the difficult economic background and mortgage market instability, life insurers delivered a steady volume of new business in both the level and decreasing-term assurance sub-categories during the review period.
- Term life assurance category shows resilience amid challenging economic conditions.
- The category will record modest growth over the next five years.
- Both advised and non-advised channels expected to drive term assurance sales.
- Regulatory changes will bring further uncertainty.
- Premium growth is expected to settle at 2.6% by 2017.
- This report provides a comprehensive analysis of the term life assurance market in the UK.
- It provides historical values for the UK's term life assurance market for the report's 2008-2012 review period and forecast figures for the 2013-2017 forecast period.
- It offers estimates of new business premiums collected in the term life assurance category.
- It analyses the key features of term life assurance products.
- It provides an overview of market dynamics and market drivers.
- It discusses various distribution channels for term life assurance products in the UK.
- It profiles top term life assurance providers in the UK, and outlines the key regulatory changes affecting them.
Reasons to Get This Report
- Gain an understanding of the UK term life assurance market size.
- Explore the market dynamics across the level-term and decreasing-term sub-categories.
- Learn about the performance of market drivers and distribution channels.
- Understand the competitive landscape and key product offerings.
- Find out more about key deals and recent developments in the market.
Companies Mentioned in this Report: Aegon UK Plc, Aviva Plc, Ageas UK Ltd, Friends Life Group Plc, Legal and General Group, Liverpool Victoria Group, Lloyds Banking Group, Prudential Plc, Royal London Group, Zurich Financial Services Ltd
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