Table of Contents
Executive Summary
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- The market
- A surge in new premiums in 2018
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- Figure 1: Value of new over-50s guaranteed acceptance life insurance premiums, 2014-19
- Non-advised policies dominate
- A growing age group but with fewer assets and less financial stability
- Companies and brands
- SunLife dominates the market
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- Figure 2: Market share of total whole-of-life insurance premiums, 2018
- Advertising expenditure falls 2.2%
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- Figure 3: Total above-the-line, online display and direct mail advertising expenditure on over-50s life cover, 2014/15-2018/19
- The consumer
- Cover peaks among 65-74 year olds
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- Figure 4: Life insurance product ownership, April 2019
- Three quarters rule out taking out cover
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- Figure 5: Consideration of over-50s life cover, April 2019
- Two thirds don’t see the need
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- Figure 6: Reasons for not considering over-50s life cover, April 2019
- TV is the most likely source of exposure to advertising
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- Figure 7: Exposure to advertising, April 2019
- M&S gift cards are most appealing welcome gift
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- Figure 8: Appeal of welcome gifts, April 2019
- Friends and family are the most important source of information
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- Figure 9: Sources of information for over-50s life insurance, April 2019
- A desire for simplicity increases with age
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- Figure 10: Attitudes towards over-50s life insurance, April 2019
- What we think
Issues and Insights
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- Gen-Xers will change the over-50s market
- The facts
- The implications
- Falling home ownership could present a growth opportunity
- The facts
- The implications
The Market – What You Need to Know
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- A surge in new premiums in 2018
- Non-advised policies dominate
- A growing age group but with fewer assets and less financial stability
- FCA and CMA step in on the cost of dying
Market Size
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- A surge in new premiums in 2018
- 2019 starts well but new premiums are expected to slow
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- Figure 11: Value and volume of new over-50s guaranteed acceptance life insurance premiums, 2014-19
Channels to Market
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- Non-advised policies dominate
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- Figure 12: Channels to market, by value of new premiums, 2014-18
Market Drivers
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- UK population continues to age
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- Figure 13: Trends in the age structure of the UK population, 2013-23
- Growth in life expectancy grinds to a halt
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- Figure 14: Change in life expectancy at age 50, by gender, 1995/97-2015/17
- Falling home ownership among 55-64 year olds
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- Figure 15: Housing tenure of 55-64 year olds, 2006/07-2017/18
- 55-64 year olds most likely to be struggling financially
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- Figure 16: How respondents would describe their financial situation, by age, February 2019
- More over-50s in employment
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- Figure 17: Proportion of those aged 50+ in employment, by quarter, 2009-19
- An increasingly digitally savvy age group
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- Figure 18: Accessed the internet in the last 3 months, by age, 2011-18
Regulatory and Legislative Changes
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- FCA warns over misleading adverts
- GDPR has implications for how cover is advertised
- CMA investigates the cost of dying
- Government proposes FCA regulation of prepaid funeral plans
Companies and Brands – What You Need to Know
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- SunLife dominates the market
- Fairer payouts to overcome negativity
- Advertising expenditure falls 2.2%
Market Shares
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- Consolidation in the market
- SunLife continues to dominate the market
- AIG enters the top five
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- Figure 19: Top five product providers, measured by value of new whole-of-life insurance premiums, 2018
Competitive Strategies
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- Offering fairer payouts
- Funeral benefits require clarity
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- Figure 20: SunLife Guaranteed funeral plan options, June 2019
- Welcome gifts remain popular
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- Figure 21: ‘Welcome gifts’ of selected over-50s life insurance providers, June 2019
- Encouraging people to talk
- Flexible premiums to protect against uncertainty
- Adding more to a policy
Advertising and Marketing Activity
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- Advertising expenditure falls 2.2%
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- Figure 22: Total above-the-line, online display and direct mail advertising expenditure on over-50s life cover, 2014/15-2018/19
- Adspend slumps in the second half of 2018
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- Figure 23: Total above-the-line, online display and direct mail advertising expenditure on over-50s life cover, quarterly change on previous year, Q1 2016-Q1 2019
- SunLife is the biggest spender on above-the-line advertising
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- Figure 24: 10 biggest spenders on above-the-line, online display and direct mail advertising expenditure on over-50s life cover, year to 1 March 2019
- TV overtakes direct mail as the leading advertising channel
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- Figure 25: Total above-the-line, online display and direct mail advertising expenditure on over-50s life cover, by media type, 2014/15-2018/19
- Channel strategy differs by advertiser
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- Figure 26: Total above-the-line, online display and direct mail advertising expenditure on over-50s life cover, by media type and leading advertiser, year to 1 March 2019
- Nielsen Ad Intel coverage
The Consumer – What You Need to Know
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- Cover peaks among 65-74 year olds
- Three quarters rule out taking out cover
- Two thirds don’t see the need
- TV is the most likely source of exposure to advertising
- M&S gift cards are most appealing
- Friends and family are the most important source of information
- A desire for simplicity increases with age
Life Insurance Ownership
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- 45% of over-50s have life insurance
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- Figure 27: Life insurance product ownership, April 2019
- Many under-65s have alternative life insurance in place
- Cover peaks among 65-74 year olds
- Over-75s most likely to have a funeral plan
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- Figure 28: Life insurance product ownership, by age and gender, April 2019
- Renters are most likely to hold over-50s life cover
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- Figure 29: Life insurance product ownership, by housing tenure, April 2019
Consideration of Over-50s Life Insurance
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- Few would consider a plan
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- Figure 30: Consideration of over-50s life cover, April 2019
- Those in their 50s are most likely to consider a policy
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- Figure 31: Consideration of over-50s life cover, by age, April 2019
- Consideration peaks among those with fewer assets
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- Figure 32: Consideration of over-50s life cover, by housing tenure, April 2019
Reasons for Not Considering Cover
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- Two thirds don’t need cover
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- Figure 33: Reasons for not considering over-50s life cover, April 2019
- Poor reputation and lack of understanding hamper appeal
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- Figure 34: Reasons for not considering over-50s life cover, by socio-economic group, April 2019
Exposure to Advertising
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- TV the most likely source of exposure
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- Figure 35: Exposure to advertising, April 2019
- Newspapers and direct mail appeal to older consumers
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- Figure 36: Exposure to advertising, by age, April 2019
- Those who would consider cover are more open to advertising
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- Figure 37: Exposure to advertising, by consideration of over-50s life cover, April 2019
Appeal of Welcome Gifts
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- M&S gift cards hold the greatest appeal
- Opportunity to move beyond one-off gifts
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- Figure 38: Appeal of welcome gifts, April 2019
- M&S gift cards are a good way to appeal to women
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- Figure 39: Appeal of welcome gifts, by gender, April 2019
- Amazon vouchers appeal to those closer to 50
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- Figure 40: Appeal of welcome gifts, by age and affluence, April 2019
- Amazon gift cards hold most appeal to those considering cover
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- Figure 41: Appeal of welcome gifts, by ownership and consideration of over-50s insurance, April 2019
Sources of Information
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- Family and friends the most likely source of information
- Advisers are growing in popularity
- Websites an important source
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- Figure 42: Sources of information for over-50s life insurance, April 2019
Attitudes towards Over-50s Life Insurance
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- Almost half have confidence in their own abilities
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- Figure 43: Attitudes towards over-50s life insurance, April 2019
- Worries peak as people approach retirement age…
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- Figure 44: Attitudes towards over-50s life insurance, by age, April 2019
- …but not everyone over 50 can be treated the same
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- Figure 45: Attitudes towards over-50s life insurance, by age, April 2019
- Women are less keen to think about their funeral
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- Figure 46: Attitudes towards over-50s life insurance, by gender and age, April 2019
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
- Definitions
- Restricted advice
- Independent advise
- Non-advised
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