Protection seen as key growth area by financial advisers
- Over 60 per cent of advisers expect to see an increase in protection business over the next 12 months
- Personal and family protection predicted as largest growth area
New research from Sesame Bankhall Group shows that advisers are optimistic about protection business growth this year.
In a survey of over 200 financial advisers, nearly a third (31 per cent) expect to write over 10 per cent more protection business in 2012 and a further 30 per cent foresee an increase of up to 10 per cent more.
Nearly half of the advisers (48 per cent) envisage personal and family protection as the area most likely to grow over the next 12 months, followed by mortgage protection (32 per cent) and business protection (17 per cent).
The optimism shown by 61 per cent of advisers, who anticipate writing more protection business this year, contrasts with some longer-term concerns. Nineteen per cent of advisers believe that last year’s ruling on the European Union Gender Directive could have a negative impact. From 21 December 2012, insurers will no longer be able to use gender as a factor in pricing for new contracts.
John Cupis, Managing Director, PMS said: “These findings show that advisers remain confident about the protection business that they will be writing, despite the volatile climate. This increased protection focus by advisers also reflects a desire to diversify their product offering and business streams. However, there is a growing awareness amongst advisers about the EU Gender Directive, with concerns that prices will go up across the industry. The prospect of rising prices could contribute to a surge in protection business being written by advisers this year prior to the changes taking place.”