OVER-50S GUARANTEED ACCEPTANCE LIFE INSURANCE - UK - JUNE 2019

OVER-50S GUARANTEED ACCEPTANCE LIFE INSURANCE - UK - JUNE 2019

Jun 2019 Mintel InsuranceN/A Price :
$ 1995

This report examines the over-50s guaranteed acceptance life insurance market including the market size, factors impacting the market, competitive strategies of the key players and the attitudes of consumers.

Mintel’s exclusive consumer research measures ownership of life insurance among the over-50s age group and explores attitudes towards guaranteed acceptance policies. The Report also explores the appeal of various welcome gifts, exposure to advertising channels, sources of information used for research and attitudes towards over-50s life insurance policies.

“The market for over-50s guaranteed acceptance life insurance experienced a surge in new premiums during 2018 as insurers doubled down on advertising spend in the first half of the year. But the uplift is expected to be temporary as the sector faces up to both the opportunities and challenges of addressing a growing but increasingly diverse and changing over-50s demographic.”

Table of contents
OVERVIEW
What you need to know
Products covered in this Report
EXECUTIVE SUMMARY
The market
A surge in new premiums in 2018
Figure 1: Value of new over-50s guaranteed acceptance life insurance premiums, 2014-19
Non-advised policies dominate
A growing age group but with fewer assets and less financial stability
Companies and brands
SunLife dominates the market
Figure 2: Market share of total whole-of-life insurance premiums, 2018
Advertising expenditure falls 2.2%
Figure 3: Total above-the-line, online display and direct mail advertising expenditure on over-50s life cover, 2014/15-2018/19
The consumer
Cover peaks among 65-74 year olds
Figure 4: Life insurance product ownership, April 2019
Three quarters rule out taking out cover
Figure 5: Consideration of over-50s life cover, April 2019
Two thirds don’t see the need
Figure 6: Reasons for not considering over-50s life cover, April 2019
TV is the most likely source of exposure to advertising
Figure 7: Exposure to advertising, April 2019
M&S gift cards are most appealing welcome gift
Figure 8: Appeal of welcome gifts, April 2019
Friends and family are the most important source of information
Figure 9: Sources of information for over-50s life insurance, April 2019
A desire for simplicity increases with age
Figure 10: Attitudes towards over-50s life insurance, April 2019
What we think
ISSUES AND INSIGHTS
Gen-Xers will change the over-50s market
The facts
The implications
Falling home ownership could present a growth opportunity
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
A surge in new premiums in 2018
Non-advised policies dominate
A growing age group but with fewer assets and less financial stability
FCA and CMA step in on the cost of dying
MARKET SIZE
A surge in new premiums in 2018
2019 starts well but new premiums are expected to slow
Figure 11: Value and volume of new over-50s guaranteed acceptance life insurance premiums, 2014-19
CHANNELS TO MARKET
Non-advised policies dominate
Figure 12: Channels to market, by value of new premiums, 2014-18
MARKET DRIVERS
UK population continues to age
Figure 13: Trends in the age structure of the UK population, 2013-23
Growth in life expectancy grinds to a halt
Figure 14: Change in life expectancy at age 50, by gender, 1995/97-2015/17
Falling home ownership among 55-64 year olds
Figure 15: Housing tenure of 55-64 year olds, 2006/07-2017/18
55-64 year olds most likely to be struggling financially
Figure 16: How respondents would describe their financial situation, by age, February 2019
More over-50s in employment
Figure 17: Proportion of those aged 50+ in employment, by quarter, 2009-19
An increasingly digitally savvy age group
Figure 18: Accessed the internet in the last 3 months, by age, 2011-18
REGULATORY AND LEGISLATIVE CHANGES
FCA warns over misleading adverts
GDPR has implications for how cover is advertised
CMA investigates the cost of dying
Government proposes FCA regulation of prepaid funeral plans
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
SunLife dominates the market
Fairer payouts to overcome negativity
Advertising expenditure falls 2.2%
MARKET SHARES
Consolidation in the market
SunLife continues to dominate the market
AIG enters the top five
Figure 19: Top five product providers, measured by value of new whole-of-life insurance premiums, 2018
COMPETITIVE STRATEGIES
Offering fairer payouts
Funeral benefits require clarity
Figure 20: SunLife Guaranteed funeral plan options, June 2019
Welcome gifts remain popular
Figure 21: ‘Welcome gifts’ of selected over-50s life insurance providers, June 2019
Encouraging people to talk
Flexible premiums to protect against uncertainty
Adding more to a policy
ADVERTISING AND MARKETING ACTIVITY
Advertising expenditure falls 2.2%
Figure 22: Total above-the-line, online display and direct mail advertising expenditure on over-50s life cover, 2014/15-2018/19
Adspend slumps in the second half of 2018
Figure 23: Total above-the-line, online display and direct mail advertising expenditure on over-50s life cover, quarterly change on previous year, Q1 2016-Q1 2019
SunLife is the biggest spender on above-the-line advertising
Figure 24: 10 biggest spenders on above-the-line, online display and direct mail advertising expenditure on over-50s life cover, year to 1 March 2019
TV overtakes direct mail as the leading advertising channel
Figure 25: Total above-the-line, online display and direct mail advertising expenditure on over-50s life cover, by media type, 2014/15-2018/19
Channel strategy differs by advertiser
Figure 26: Total above-the-line, online display and direct mail advertising expenditure on over-50s life cover, by media type and leading advertiser, year to 1 March 2019
Nielsen Ad Intel coverage
THE CONSUMER – WHAT YOU NEED TO KNOW
Cover peaks among 65-74 year olds
Three quarters rule out taking out cover
Two thirds don’t see the need
TV is the most likely source of exposure to advertising
M&S gift cards are most appealing
Friends and family are the most important source of information
A desire for simplicity increases with age
LIFE INSURANCE OWNERSHIP
45% of over-50s have life insurance
Figure 27: Life insurance product ownership, April 2019
Many under-65s have alternative life insurance in place
Cover peaks among 65-74 year olds
Over-75s most likely to have a funeral plan
Figure 28: Life insurance product ownership, by age and gender, April 2019
Renters are most likely to hold over-50s life cover
Figure 29: Life insurance product ownership, by housing tenure, April 2019
CONSIDERATION OF OVER-50S LIFE INSURANCE
Few would consider a plan
Figure 30: Consideration of over-50s life cover, April 2019
Those in their 50s are most likely to consider a policy
Figure 31: Consideration of over-50s life cover, by age, April 2019
Consideration peaks among those with fewer assets
Figure 32: Consideration of over-50s life cover, by housing tenure, April 2019
REASONS FOR NOT CONSIDERING COVER
Two thirds don’t need cover
Figure 33: Reasons for not considering over-50s life cover, April 2019
Poor reputation and lack of understanding hamper appeal
Figure 34: Reasons for not considering over-50s life cover, by socio-economic group, April 2019
EXPOSURE TO ADVERTISING
TV the most likely source of exposure
Figure 35: Exposure to advertising, April 2019
Newspapers and direct mail appeal to older consumers
Figure 36: Exposure to advertising, by age, April 2019
Those who would consider cover are more open to advertising
Figure 37: Exposure to advertising, by consideration of over-50s life cover, April 2019
APPEAL OF WELCOME GIFTS
M&S gift cards hold the greatest appeal
Opportunity to move beyond one-off gifts
Figure 38: Appeal of welcome gifts, April 2019
M&S gift cards are a good way to appeal to women
Figure 39: Appeal of welcome gifts, by gender, April 2019
Amazon vouchers appeal to those closer to 50
Figure 40: Appeal of welcome gifts, by age and affluence, April 2019
Amazon gift cards hold most appeal to those considering cover
Figure 41: Appeal of welcome gifts, by ownership and consideration of over-50s insurance, April 2019
SOURCES OF INFORMATION
Family and friends the most likely source of information
Advisers are growing in popularity
Websites an important source
Figure 42: Sources of information for over-50s life insurance, April 2019
ATTITUDES TOWARDS OVER-50S LIFE INSURANCE
Almost half have confidence in their own abilities
Figure 43: Attitudes towards over-50s life insurance, April 2019
Worries peak as people approach retirement age…
Figure 44: Attitudes towards over-50s life insurance, by age, April 2019
…but not everyone over 50 can be treated the same
Figure 45: Attitudes towards over-50s life insurance, by age, April 2019
Women are less keen to think about their funeral
Figure 46: Attitudes towards over-50s life insurance, by gender and age, April 2019
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology
Definitions
Restricted advice
Independent advise
Non-advised

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