The Protection Distributors Group (PDG) had published the first Protection Insights Report 2026, including advisers' views on the market and market practice, what clients want and need, and the barriers to writing more business and regulation.
The results are included in a survey of 322 protection professionals from across the market who work for firms that are either direct members of the PDG or associate members through their membership of a mortgage club or network.
198 advisers perceived there to be barriers to selling more protection. 59% of those who said they faced barriers to writing more protection business selected inefficient underwriting as the main reason, claiming that it took up too much of their time. This far outstripped the next most frequent selection.
Compliance was selected by 15% of respondents, mortgage recommendations being too time-consuming by 12%, and 11% selected the protection market as being too complicated.
The survey also saw a resounding vote of confidence for annual protection statements, with 41% of advisers now seeing statements as essential, while 28% said they view them as very important. Just 3% said statements are not important.
The survey also sought views about the current and future market. 74% of respondents believe plans to bring pensions into inheritance tax in 2027 will drive more sales of life insurance.
89% of respondents believe the trend for more income protection (IP) to be sold will continue for the next five years, and 72% believe a shift in attitudes regarding consumers protecting their earnings is responsible for the IP boom.
Furthermore, 66% of advisers surveyed think 'wealth advisers' do not recommend enough protection, 69% of advisers see Consumer Duty as a positive for clients, 68% of respondents saw 'tight budgets' as the biggest challenge for clients, and 75% of respondents said the welfare burden could be reduced if more was done to demonstrate to the public that being protected can reduce reliance on the state.
"This survey has given us valuable insight into how advice firms view our market," PDG chair Emma Thomson said. "It’s positive to see a level of optimism about protection, and rightly so, given the good work our industry does for so many customers and their loved ones. But there are some concerns, and there is room for improvement.
"Underwriting delays came out as the biggest barrier to writing protection. It is not the sole barrier, of course, but was the most frequently selected option. Most people want to grow the protection market, but we will struggle to achieve that if the process for arranging cover is not made simpler for both applicants and advisers, so that more consumers can access valuable cover.
"Our members are keen for the market to grow and for more consumers to benefit from protection products. The FCA has stated in its interim report that a key concern is the Protection Gap, and improving access to insurance, as well as consumer awareness, will help to close this gap.
"A holistic approach from policymakers and regulators that take in the need to get more people covered would be good news for us all. We hope this research and report help inform debates about the future of the protection market."
PDG board member Roy McLoughlin added: "The results for advisers' belief in annual statements are remarkable. A big majority of advisers think statements are essential or very important.
"We have a wealth of information about what protection advisers are thinking, some of relevance to the sector, with some findings of relevance to wider society. But this result is striking and something the protection sector can solve on its own. Our view is that providers should make annual statements standard practice. It can only help boost client engagement, and that helps everyone."
