While sales of individual income protection policies have grown steadily in recent years, they remain dwarfed in comparison to the impressive performance of a complementary insurance product, critical illness cover. Substantially improving take-up of income protection has so far proved problematic, with issues such as cost, complexity and lack of awareness posing as key barriers. Hence, there remains a large income protection gap, and thus huge potential for market expansion. Indeed, industry observers and product providers have for some time espoused the virtues of income protection and declared that a boom in sales must surely be nigh. Raising the profile of the product among IFAs and employers is helping in this endeavour, as is the growing popularity of expenditure-related (or mortgage-related) plans.

These trends and issues are examined in great detail throughout this report, offering the user a unique marketing perspective of the prospects for products under the bracket of income protection. Other areas covered in the report are Market Size, Key Players, Distribution, Advertising and Promotion and The Consumer. The section on key players includes selected company profiles of the largest providers in the field. The penultimate section examines the future direction of the market and this is then followed by a presentation of Mintel’s five-year market forecasts. This report’s key findings include

New individual IP business being driven by the mortgage sector

Fewer suppliers in the marketplace

IFAs gaining ground in the individual sector

Sales of individual IP policies via the independent intermediary route have grown strongly in recent years,

Advertising expenditure on IP much less than on critical illness cover

Consumers confused over levels of cover and policies available

16% of consumers have had previous experience of long-term illness

Vast majority of consumers are not confident about their level of protection

Further growth expected in both the individual and group IP sectors,