Confusion around underwriting and pricing is continuing to act as a barrier to life insurance uptake, particularly among women, Millennials and Gen X consumers, according to new research from UnderwriteMe.

The study of 2,000 UK adults found that more than half (51%) would feel frustrated if the price they were initially quoted increased after answering additional underwriting questions. Almost a quarter (24%) said such a change would be very frustrating.

This frustration is more pronounced among women, with 55% saying they would be put off by price increases during the process, compared with 47% of men. Women were also more likely to cite cost as a barrier, with 34% saying life insurance is too expensive versus 30% of male respondents.

PRICING CONFUSION PERSISTS

While awareness of underwriting factors appears relatively high, understanding remains limited. Two thirds (66%) of respondents recognised that personal details such as medical history, occupation and lifestyle can affect pricing.

However, 24% said they were unsure how these factors influence premiums, and a further 10% did not believe they had any impact at all.

The findings suggest that while consumers broadly accept risk-based pricing, a lack of transparency around how quotes are formed continues to undermine confidence.

COST AND TRUST REMAIN KEY BARRIERS

Overall, three in five UK adults (61%) reported at least one barrier to taking out life insurance.

Cost remains the most significant factor, with 32% concerned that cover will be too expensive. Meanwhile, 21% said they were unsure whether insurers would pay out, pointing to ongoing trust issues within the market.

Process-related concerns were also evident, with 14% describing life insurance as complicated or overwhelming, and the same proportion unsure where to begin or who to trust. A further 11% said they intend to deal with life insurance later rather than now.

GENERATIONAL DIVIDE EMERGES

The research also highlights clear generational differences in attitudes to protection.

Younger consumers are more likely to struggle with how to start the process, with 20% of those aged 18 to 34 unsure where to begin, compared with 15% of those aged 35 to 54 and just 8% of over-55s.

Cost concerns are most acute among Millennials and Gen X, both at 36%, compared with 26% of Baby Boomers.

Gen Z respondents were the most likely to describe the process as confusing or overwhelming, at 23%, while uncertainty around whether insurers would pay out was highest among Gen X at 27%.

Nilesh Patel, chief revenue and customer officer at UnderwriteMe, said: “Most people understand why life insurance matters, but lack of clarity around how the process works is putting people off, leaving them lacking vital protection from a product that should be essential.

“Cost worries play a big part here, but uncertainty about what will influence the final price can be just as significant. When quotes change or the purpose behind certain questions is not fully understood, it can create doubt.

“For some people that doubt is enough to delay a decision, even if they recognise the value of having that protection in place.

“There is also still a clear confidence gap around underwriting. If the process feels unfamiliar or unpredictable, people can assume it will be more complicated than it is.

“Technology is now enabling real-time underwriting so this is a solution that can help deliver results quickly and help advisers with getting applications over the line without delays.”

Roy McLoughlin, board member of the Protection Distributors Group, said: “PDG’s recent Protection Insights Report highlighted that despite adviser optimism around protection, there is room for improvement across the market.

“The lack of adviser confidence in underwriting was also a key issue, with nearly 6 in 10 (59%) respondents saying inefficient underwriting was a key barrier to writing more protection.

“There is clearly frustration amongst advisers about unnecessary underwriting delays, additionally ratings and premiums can be difficult to explain to the customer six months down the line once the underwriting is completed.

“This can in turn cause consumer confusion around the process and pricing.

“If the fear is consumers are abandoning the journey due to confusion around the process or pricing it is incumbent that the advisory community, in collaboration with insurers, work together to make the taking out of protection a far smoother process than it currently is.

“Underwriting needs to be slick, speedy, and easy to navigate which will certainly help adviser confidence and consumer confidence and uptake of protection policies.”

The findings point to a need for clearer communication from both advisers and providers around pricing, expectations and the application process, particularly as technology continues to reshape underwriting.

Improving transparency and reducing friction may be key to encouraging earlier engagement with protection, especially among younger consumers and those currently deterred by perceived complexity.