Protection sales reach new five-year high

The data, collated from 22 protection providers with inputs from over 11,000 advisers, shows income protection product sales in Q3 increased by 14.2% on the previous quarter, reaching £10.7 million, compared to £9.4 million in Q2.

Mortgage term protection sales continued to grow, with a 3.8% increase in Q3 following a 20.7% increase in Q2. Whole of life and term with critical illness policies also saw growth, at 4.5% and 3.5% respectively.

However, not all products did so well in Q3, with critical illness, decreasing term with critical illness, relevant life and term products decreasing by 9.4%, 1.3%, 5.8% and 1.1% respectively.    

John Driscoll, Director at Equifax Touchstone, said:

“Q3 began in the aftermath of the snap general election and also as Brexit negotiations started to really get underway. This political uncertainty, combined with the continued murmurings of an economic downturn on the horizon, goes some way to explaining the rise in income protection sales. People in the UK are responding to the high levels of uncertainty and the concerns over job security that come with this.”