More than a third of people (39%) are more likely to buy protection insurance because of their experience during the pandemic, according to a report by Hymans Robertson.
The 2021 protection report revealed the uptake in protection insurance was due to people seeing the pandemic’s impact on the health of others.
It also found price remains a key driver for whether the protection insurance is purchased.
Almost a third (31%) of respondents said they have not taken on protection policies because they think it would be too expensive.
Value-added services were often a leading factor in encouraging people to purchase a particular policy over another.
The most popular addition was legal services, with around a third (34%) citing this as something that would lead them to buy a policy.
Health and wellbeing services were the second highest in popularity, with 27% citing this.
Access to virtual GPs came third, with 26% of people claiming this would make them favour one policy over another.
Nutrition and dietary advice was the lowest ranked option, cited by just 15%.
There was a vast difference of opinion about these services depending on age.
Around one in 10 (12%) of over-55s said value-added services would make no difference, compared with under-35s who claimed at least one option of it would influence their purchase.
The report also showed that nearly half (48%) of those renting privately or living in social housing had not held any protection insurance in the past five years.
Of those who held a protection insurance policy, the key motivator cited for the purchase was buying a house.
One of the biggest drivers for someone taking out protection such as life insurance is having a mortgage.
Hymans Robertson warned that those who do not own their homes are often missing out on this natural prompt to discuss their protection needs.
The group’s head of product, insurance and financial services Karen Brolly says: “It isn’t a surprise that the turbulence of the past 18 months has led people to re-evaluate their priorities and look at whether additional protection could be worthwhile.
“The focus on health has undoubtedly brought this into sharper focus. Yet, despite the demand, cost will always be a consideration so this is something that insurers must be mindful about.
“Our research indicates that consumers are beginning to realise the benefits of those services currently offered in the market. But there is some way to go.
“It’s vital for insurers to make sure the services added to products are meeting customers’ needs, expectations and demands for real value.”
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
|cookielawinfo-checkbox-analytics||11 months||This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".|
|cookielawinfo-checkbox-functional||11 months||The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".|
|cookielawinfo-checkbox-necessary||11 months||This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".|
|cookielawinfo-checkbox-others||11 months||This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.|
|cookielawinfo-checkbox-performance||11 months||This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".|
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.