The UK term assurance market saw growth last year with sales increasing by 28%, according to research by GE Frankona Re.
The sales in 2001 of term assurance policies took the new total to 7,078,201which means that approximately one in four UK workers are now covered by term assurance.
The survey discovered that a further concentration of business with the top 10 providers (including Scottish Provident, Norwich Union and Legal & General) grew their market share of new business from 59% in 2000 to 71% in 2001.
Marketing analyst and report author Louise Roche said: “2001 was a remarkable year for term sales, far outstripping the 8% increase we saw in 2000.
“It’s high volume, low margin and the big players have the volume at present. However, with the ongoing dependence on mortgage related sales providers need to grow other protection areas to ensure these volumes can continue.”
She said that family protection and key person insurance were good options to push forward.
Independent financial advisers (IFAs) grew their share of level term new business to 40%, up from 37%, and decreasing term new business to 44%, up from 36%.