"If the distribution model a customer encounters cannot accommodate their needs, the outcome is the same as never reaching them at all."
- Debbie Kennedy - LifeSearch
A new report from LifeSearch has found that two-thirds of consumers believe it’s important to have life insurance recommendations tailored to their health or personal circumstances when buying through a bank, building society or high-street retailer.
The Distribution Redefined report warns against the single-tie distribution model with the argument that when customers cannot find suitable cover, many disengage altogether. The report shows that access, trust and engagement are closely linked, which LifeSearch says helps to explain why the protection gap persists, as it’s not simply that people aren’t reached, but because some disengage when the options they are given do not reflect their circumstances.
The findings show that consumers have clear expectations around tailored advice and product suitability. Two-thirds, or 66%, say they would want to be offered a policy suited to their health conditions or family history, and 66% also say it is important to receive a recommendation tailored to their personal circumstances.
Meanwhile, 58% say it’s important they get advice from an insurance specialist who considers their individual situation, and 56% do not want a one-size-fits-all approach to an insurance product.
The scale of the challenge is underlined by LifeSearch's own customer data: in 2025, around one in four of the customers it helped secure life insurance for were offered terms that differed from standard cover. This may have meant a slightly higher premium, a specific exclusion, or additional checks - but importantly, they were still able to get the protection they needed.
These customers are not unusual and include those with conditions such as more advanced type 2 diabetes, complex mental health histories, very high BMI, or those waiting on medical test results - all of which can make it harder to find cover through a single‑insurer route.
LifeSearch warns that if a customer cannot find suitable cover through a single‑insurer route, they may assume protection is not available to them at all, when in many cases, a wider range of insurers, including those more able to support customers with more complex needs, may exist elsewhere in the market.
NHS Health Survey for England 2024 found that 46% of adults are living with a longstanding illness or condition, and The Health Foundation estimates that 9.1 million people in England are projected to be living with major illness by 2040, an increase of 2.5 million compared to 2019, growing nine times faster than the working-age population.
This means that the pool of consumers who may need more than a standard, single-product offering is large and growing.
For firms, the implication is clear: improving access is not just about offering more products, but about making sure more customers can find a route to cover that works for their circumstances.
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"The protection gap debate has tended to focus on reach, how the industry gets in front of more people," Debbie Kennedy, chief executive of LifeSearch, said. "But reach is only part of the picture. If the distribution model a customer encounters cannot accommodate their needs, the outcome is the same as never reaching them at all.
"Our experience shows that many people don’t fit a standard insurer profile, and that’s increasingly the norm. Around a quarter of the customers we helped last year were offered terms that differed from standard cover, yet with specialist advice and access to the wider market, they still got protected.
"Those customers exist across every part of the market. The difference is whether they are given access to the right options or are left thinking cover isn’t available and remain unprotected."
