Hello everyone and welcome to this week’s protection update.
I don’t know whether you pay attention to statistics but here’s a few with regards to income protection across the whole of the market.
If you look at all the main protection products, did you know that Income Protection distribution through advisers makes up the highest ratio (much higher than life cover, critical illness cover, whole of life cover). Income Protection is 99.4% through advice distribution. That means someone who needs and wants income protection really needs to talk to an adviser.
If you look at the past 5 years and before the pandemic, income protection sales across the entire industry were 117,814 back in 2016. If you compare that to critical illness, that was 434,363.
The numbers were a bit higher at around 121,000 policies in 2017 and then we had a big spike taking income protection sales up to 148,000 in 2018.
Then we broke the record for the number of income protection sales in 2019 to around 179,000 policies – that was the most we ever saw in a calendar year. Compare that to critical illness in 2019; it was 539,000 policies. If you look at life cover term policies 2019 – it was 1.6 million term policies.
Income protection is typically around 10% of term sales as a ratio but that is weird because the more likely thing you will need is income protection; the but more probable thing you will have is life assurance.
But as I mentioned, the distribution for Income Protection is all about advice and that’s why we are putting a particular focus on the subject of income protection right now.
So, I caught up with our national partnership manager from Royal London, Tony Ormond and we talked about this Income Protection champion competition were running …
I’ll give you another update next week about who’s doing well in this competition in terms of the current top 10 advisers.
There is 1 month left in this competition which will conclude at the end of next month so keep going – there are quite a few of you who have a very good chance of picking up the trophy.
CIC under the Bonnet
Now we ran our second CIC under the Bonnet webinar this week and it was great to see some of you in attendance.
I felt it was a really good format for a webinar as it wasn’t just one dimensional from a provider perspective because we had Paul Roberts providing expert commentary from CIExpert.
Effectively, each presenter would give that technical overview and reasons why you should consider their critical illness proposition.
Paul then gave his take on how these conditions stack up in the market and he gave that extra critique on each of our providers.
It was all respectful and complimentary but I felt it really worked and I will be putting more of these on in the future.
In the meantime, we did record both sessions and we’re going to make each of those available to you via the training hub. I’ll come back to you once these are uploaded and ready to view.
Business Protection Webinar
We do have a business protection webinar next Thursday where we will be covering Relevant Life and Shareholder Protection. We’re running this one in conjunction with Aegon.
So that’s it from me for another week.
Have a great weekend and I’ll see you soon.
