New market study, "UK Protection 2010", has been published

Aug. 19, 2010 - PRLog -- The protection market will see improvements at a time when the economy is at a pivotal point of recovery. Consumers are more financially aware of risks in the aftermath of the financial which will have a positive effect on the uptake of protection products.

Scope

* Sizes the UK protection market and identifies lucrative consumer segment opportunities for providers.
* Highlights barriers to entry into the protection market for consumers and assess strategies to combat these barriers.
* Identifies the top competitors and distribution channels of the UK protection market.

Highlights

Consumers have become more financially aware given the financial crisis however they lack understanding of the product and where to seek advice. Advisors are perfectly positioned to educate consumers in hedging protection risks.

Reasons to Purchase

* Understand of the size, shape and key drivers of the protection market.
* Gain invaluable insight in to the latest innovations and developments in the market
* Access Datamonitor's forecasts for the market and distribution channels and gain valuable understanding of market development.

For more information or to purchase this report, go to:
-  http://www.fastmr.com/prod/76303_uk_protection_2010.aspx

Partial Table of Contents:

Overview 1
Catalyst 1
Summary 1
Executive Summary 2
The protection market continued to contract in 2009 2
Providers need to innovate products and improve clarity in order to attract consumers 2
Regulatory issues will impact on the protection market 2
IFAs are the dominant channel, but non-intermediated channels are forecast to increase 2
Table of Contents 3
Table of figures 4
Table of tables 5
Market context 6
The full suite of protection consists of five main types of products 6
Whole of life policies have guaranteed payouts 6
Term assurance is the most basic form of life assurance 7
Critical illness products provide a helping hand in difficult circumstances 8
Income protection products provide an income stream in times of need 9
Long-term care Insurance 10
New business in the protection market has seen a decline of 0.5% 10
Whole of life has maintained 2008 levels despite a contacting protection market 10
Savings related term assurance continues its upward swing of growth in 2009 11
Sales of IP have fallen by 8.5% compared to the previous year's new business 12
Standalone CII is losing popularity among consumers 13
CII as a rider to term assurance accounts for a majority of the market 13
Long-term care accounted for only 1.3% of the protection market new business premiums in 2009 15
The total protection market is forecast to grow at a CAGR of 1.2% between 2010 and 2014 15
Mortgage related term assurance 16
Savings related term assurance will return to pre-recessionary levels 17
Whole of life will peak in 2011 before declining thereafter 17
Income protection will experience low growth of 1.5% over 2010-14 18
Critical illness 18
CII as a rider to term assurance will see growth of 5% from 2010 to 2014 19
Market issues 20
Providers need to encourage consumers to engage in the protection market 20
The UK protection gap grew alarmingly to GBP2.4 trillion in 2009 20
Attempts to engage the consumer have failed as consumers continue to undervalue protection products 20
Providers should encourage consumers as they become more proactive in their financial situation 20
Consumers believe that they do not need protection products 21
Consumers' motivations for engaging with protection tend to hinge on key life events 22
Providers need to explore alternative channels to engage consumers 22
Different age groups have different benefits for providers 23
Providers need to explore alternative ways to attract consumers 23
Consumers are devaluing the product 24
Aggregators draw consumers' attention to price rather than the suitability of the product to their needs 24
Providers need to focus on product innovation to attract consumers 25
Aviva offers free life cover to new parents 25
Benefits to the consumer 26
Why offer one year's free life assurance? 26
Providers who prepare for regulatory changes will stand in good stead for the near future 27
The RDR is on track for 2012 despite the FSA's dissolution 27
The dissolving of the FSA will impact on the regulatory landscape of the protection market 27
Providers should not undervalue LTCI as a protection product 27
Insurers must seek stronger reoccurring inflows 28
Competitor Dynamics 29
L&G wrote the highest proportion of new term assurance business in 2009 29
Royal London Mutual moves is top for new business premiums in the critical illness market 31
CIS writes the highest level of new business for WOL to knock Forresters into second place 33
HSBC commands the IP market having written GBP8.6m APE in 2009 34
Distribution Dynamics 37
IFAs are the major distribution channel 37
What are the distribution channels? 37
IFAs play a key role in the education of consumers 37
Aggregator sites challenge IFAs 39
Aggregator sites are changing the distribution landscape 39
IFAs need to keep up with the advances in technology and its impact on the protection business 39
An increase in price competition through aggregator sites is squeezing profit margins 40
Non-advised sales are detrimental to the consumer experience 41
Consumers have reasons to mistrust the protection market 41
Consumers find protection products confusing 41

Full Table of Contents is available at:
-- http://www.fastmr.com/catalog/product.aspx?productid=7630...

About Datamonitor

The Datamonitor Group is a world-leading provider of premium global business information, delivering independent data, analysis and opinion across the Automotive, Consumer Markets, Energy & Utilities, Financial Services, Logistics & Express, Pharmaceutical & Healthcare, Retail, Technology and Telecoms industries. Datamonitor's market intelligence products and services ensure that you will achieve your desired commercial goals by giving you the insight you need to best respond to your competitive environment.  View more research from Datamonitor at http://www.fastmr.com/catalog/publishers.aspx?pubid=1002

About Fast Market Research

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Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.