Most UK consumers believe financial advisers should discuss protection against everyday accidents as part of their wider protection planning, yet many remain unaware of affordable options, according to new research from National Friendly.
The friendly society’s latest study, Bruised Britain #2: The Mishap Gap, surveyed 5,000 UK adults and found that 74% expect advisers to raise the subject of protecting income from accidents, illness and loss of life during protection discussions. That figure rises to 81% among Gen Z and 84% among Millennials.
More than half (58%) of consumers said they expect advisers, banks or platforms to mention Accident Only Income Protection (AOIP) when talking about income protection. Among those with an adviser, half said they were likely to discuss accident-only or short-term injury cover, rising sharply to 78% of Gen Z and 77% of Millennials.
AFFORDABILITY OPPORTUNITY
National Friendly’s research highlights that AOIP could play a crucial role in closing protection gaps, particularly given its relative affordability. Almost half (49%) of consumers interested in income protection said they would consider an accident-only policy if it were cheaper than full cover, increasing to 56% of Millennials.
Despite this, a large proportion of consumers overestimate its cost. Forty per cent admitted they did not know what AOIP costs each month, and those who guessed put the average price at £27.80.
Younger respondents believed it was even higher at £29.90, while nearly a quarter thought premiums exceeded £30. In reality, National Friendly’s AOIP policies start from £7.50 per month.
AWARENESS WITHOUT UNDERSTANDING
While 61% of respondents said they had heard of AOIP, few understood what it covered. Perceived cost was the main barrier to purchase for 32% of consumers, rising to 39% among Generation X. Other deterrents included doubts over whether policies would pay out (16%) and confusion about policy options (10%).
A further 10% said they had never heard of AOIP at all, and 7% did not know where to obtain it. Among Gen Z, that lack of awareness was far greater, with 15% saying they did not know where to find such products.
Many respondents said clearer information would make them more likely to engage with AOIP, including better explanations of what is and is not covered (16%), more transparency around exclusions (15%), and simpler policy wording (15%).
Emma Vaughan, managing director at Omni Protect, said: “It’s encouraging to see consumers – especially younger ones – open to more flexible protection options.
“If nearly half of younger consumers would consider income protection for accident-only cover at a lower price, it’s a clear signal that affordability and simplicity are key to unlocking engagement.
“This kind of modular approach could be a powerful gateway into broader protection conversations, helping advisers meet clients where they are while still delivering meaningful cover.”
“A CRITICAL DISCONNECT”
Graham Singleton, chief executive of National Friendly, said: “This research reveals a critical disconnect in the protection market. Consumers – particularly younger generations – are clearly signalling they want accident cover to be part of the conversation, yet many advisers aren’t routinely discussing it, and consumers fundamentally misunderstand what AOIP costs and covers.
“The headline is stark: three in five consumers expect accident-only income protection to be discussed if they seek advice about income protection. Yet only 4% currently own AOIP policies. This represents both a significant gap in consumer protection and a substantial market opportunity.”
He added that affordability was key to engagement: “When consumers understand that AOIP can provide meaningful protection at a lower price point than full income protection, appetite increases dramatically – especially among younger people.
“The challenge for our industry is to close the awareness gap and ensure accident cover becomes a routine part of protection conversations.”
CURRENT COVER LEVELS
The report found that just 7% of consumers hold standard income protection policies, 7% have accident, sickness and unemployment cover, and 4% currently hold AOIP – though this rises to 7% among Millennials.
National Friendly said demand for its AOIP and Friendly Shield products had grown strongly, with sales up 136% in six months and now making up 46% of its overall volume.
Joshua Sargent, chief executive of Clark UK, said: “By demonstrating the value of the product and highlighting the points of differentiation, AOIP can become a prominent solution for many UK consumers.
“Sometimes self-insurance is proposed by customers as an alternative route, but explaining the potential impact accidents can have on their typical savings tends to highlight the level of inadequacy.”
National Friendly’s income protection range includes Accident Only Income Protection, Friendly Shield, and Standard Income Protection. The latter two cover both accidents and sickness, with Friendly Shield requiring no medical underwriting and offering extended family cover.
The Bruised Britain report concludes that bridging the “mishap gap” will depend on improving consumer education, addressing misconceptions about cost, expanding protection conversations to include everyday accidents, and creating flexible, accessible products that meet a wider range of needs.
