The UK market for critical illness insurance is not currently in the best of health. New sales of individual policies have fallen in each of the past three years – wiping out all of the growth achieved during the preceding three years. Product penetration has also declined, and is low relative to the level of consumer need. Mintel’s report investigates the possible reasons for this and considers if, when and how the market might stage a recovery. It also considers whether the recent decline is being experienced by all providers, or whether certain insurers are managing to buck the trend and achieve growth.

Mintel’s market and company analysis is complemented by the results of an online consumer survey, which examines product ownership and barriers to purchase, identifies the most likely factors that could prompt a future purchase and reviews general attitudes toward critical illness cover. For the first time, Mintel also reveals the proportion of adults who have experienced a critical illness, either directly (where they are the sufferer) or indirectly (another family member or close friend is the sufferer).

This report examines the UK market for individual critical illness insurance.

Critical illness cover is a long-term policy designed to pay a tax-free lump sum to the policyholder on the diagnosis of certain illnesses and medical conditions of a specific severity, such as cancer, heart attack, stroke, multiple sclerosis etc. The number and range of medical conditions covered can vary considerably between insurers. It can be bought on its own (ie as a standalone policy) or as an addition (ie as a ‘rider’ benefit) to other types of insurance, notably term life assurance. It can be taken out on a single or joint basis. Some policies include cover for children, either as standard or as an optional extra.

Although the focus of this report is on critical illness insurance, reference is also made to other related products, such as term assurance. For definitions of these, see the Appendix.