Protection figures buck Q3 trend to hit record-high quarter

From January to the end of September, IRESS has recorded well over half a million (550,479) protection new business applications, an increase of 22% compared to the same period in 2017.

Historically, volumes in the second and third quarters have always been lower than the first quarter, however the three months from July to September 2018 have bucked this trend with a new highest quarter at 189,769. This compares to 187,933 in Q1 2018 which was previously the highest quarterly figures recorded.

August stands out as a particularly strong month, seeing the highest number of new business applications submitted through IRESS' Exchange platform in any one month at 64,776, compared to the previous highest month of 63,241 in March 2018.

The most notable success story is income protection, with a significant 37.8% increase in new business from Q3 2017 to Q3 2018.

Term life and multi-benefit products have also recorded growth with term new business up 31% annually and multi-benefit up 29.3% compared with Q3 2017.

Dave Miller, executive general manager (commercial) at IRESS, said: “2018 continues to build on the record-breaking figures for protection new business applications we saw in 2017.

“This trend for growth in protection sales is hugely encouraging. I believe there’s a combination of factors contributing to this. Much-needed inroads have been made to close the protection gap, for example, with providers offering innovative products to better cater for those with certain health criteria or conditions who may otherwise struggle to obtain life insurance cover at a reasonable price.

"We’re also seeing providers embracing technology to reduce time and complexity for the end customer, something which younger generations in particular have come to expect in today’s instant access, digital world.

“All in all, it’s looking like another great year for protection and I look forward to this positive trend continuing as we go into the final quarter.”