The UK’s income protection market could be finally showing its potential after achieving its first growth in nearly a decade, the Association of British Insurers (ABI) said.
The industry body revealed that there were 1.15 million individual income protection policies in force in 2015, up by 2% from 1.13 million in 2014.
According to the ABI, this is the first time since 2007 that the number of policies has increased.
Data from the ABI also showed growth in the group income protection market with the number of people covered by their employer rising by 3%.
ABI said the group income protection market continues to grow after reaching coverage of two million in 2013.
The industry’s efforts to raise awareness and improve understanding of income protection may have driven the market growth, ABI said.
“We’re very pleased that more people are benefitting from income protection, which provides vital support for people who are unable to work due to illness or injury,” said Raluca Boroianu-Omura, ABI head of protection and health.
“This new data is encouraging, but there is work to be done to improve the take up of income protection so more people can benefit,” she added.
Boroianu-Omura said income protection does not only act as an “essential safety net” for workers, it also helps them return to the workplace earlier with rehabilitation services.
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