The Exeter has published new findings from a nationwide survey of the UK’s insurance advice community, highlighting adviser expectations for the year ahead.

According to the protection and health insurer’s report, advisers predict a marked increase in demand for health insurance, income protection and life insurance products in 2025.

51% of advisers surveyed who advise on income protection anticipated that demand would rise in 2025, compared to only 31% who predicted that demand would be similar to 2024. Only 18% expected to see a fall in demand.

The same trends were evident for those surveyed who advise on life insurance. The most common sentiment amongst these advisers was that demand would increase in 2025, with 44% predicting this, compared to 37% who expected demand to remain the same, and 19% who predicted a drop.

For those surveyed who advise on private health insurance, the most common response was that consumer demand would continue to increase, with 40% predicting this. 32% felt demand would stay the same with 28% foreseeing a dip in demand.

FUTURE DRIVERS

When considering which factors might create the biggest increase in demand for health and protection insurance in the next five years, the most common response from advisers was ‘Economic growth and greater consumer spending capability’ (18%), followed by ‘continued pressure on public healthcare services’ (17%) and ‘increased adoption of technology and AI in insurance propositions (14%).

Only 9% of advisers felt that tax reductions (such as a reduction in Insurance Premium Tax) would have a significant effect on increasing demand.

ADVISER CONFIDENCE

Notably, advisers in the UK agreed that demand would either hold strong or grow. Moreover, 92% of advisers surveyed were confident that they would be able to meet an increase in demand for insurance from their clients, with 42% reporting they felt ‘very confident’. Only 2% reported that they did not feel at all confident.

Table: Confidence of advisers by region in being able to meet an increase in demand for insurance from their clients:

The survey also touched on where advisers saw positive changes in the market that would drive further business for their firms. According to the sample, the greatest opportunities for advisers over the next 12-24 months were considered to be ‘greater consumer awareness around the need for health/financial insurance’ (39%), ‘streamlining operations by focusing on specialised advice’ (32%) and ‘continued health service pressure’ (31%).

Steve Bryan, the Exeter‘s director of distribution and marketing, said: “It’s pleasing to see that advisers are confident about an increase in demand for insurance in the next 12 months.

“Just as pleasing is the overwhelming number of advisers who are confident of meeting this demand; something that insurers also need to be prepared for to enable clients to get the valuable cover they need as efficiently as possible.

“As we move through 2025 and beyond, it’s important that our industry continues to collaborate and makes the most of every opportunity that presents itself to increase awareness and uptake of protection and health insurance products.

“The outlook is hugely positive and building on the momentum we have created in recent years is key to protecting more people from the impacts of ill health.”