英国における生命保険/生活保護商品の市場

Abstract

The Life Assurance Gap - the difference between the level of individual cover required and the actual amount in place - has been a cause of concern for the protection market for some time. Mintel' s consumer research shows that the vast majority of people understand the importance of life insurance but far fewer have adequate cover in place. In recent years the cost of life insurance has fallen considerably, however, cheaper cover has not led to an increase in sales or a reduction in the protection gap. Issues of trust, an uncertain housing market, increased regulation and consumer confusion present barriers to future growth within the life insurance market.

All sectors of the life insurance market have endured difficult conditions over the last few years leading to declining sales, in both the number of policies sold and the value of premiums. However, the variety of uses for the range of life insurance products available means that reversing such a trend is a complicated task. Indeed, while the markets for term assurance and endowments are expected to face continued pressure, at least in the short term, there are some indications from within the whole-of-life market, and the guaranteed acceptance market specifically, of an upturn in performance.

This report examines the key issues facing the life insurance industry today, ranging from demographic and economic factors to the impact of legislative and regulatory changes. The overall size of the life insurance market is assessed, while the report also identifies key players and innovation within the market. Consumer research highlights attitudes and behaviour towards life insurance.

The report concentrates primarily on the protection aspects of the life insurance market and does not cover in detail the associated investment aspects. The emphasis is on individual term life and whole of- life policies, although some attention is given to endowment business. As this report examines the market for individual life insurance, regular-premium and ordinary branch business provides the focus for this report

Table of Contents

• Issues in the Market
• Report Coverage
• Market definitions
• Abbreviations
• Market in Brief
• Insurers fail to narrow the life assurance gap
  • Figure 1: The life assurance protection gap, 2002-06
• Some growth in 2006, but unlikely to be matched in 2007
  • Figure 2: Volume and value of new individual regular-premium insurance policies written, 2001-07
• Life insurance -- performance and outlook vary between sectors
  • Figure 3: Number of new individual regular-premium insurance policies written, by sector, 2001-07
• Term assurance expected to face a tough 2007...
• ...but there is an improved outlook for whole-of-life market
• Endowment sales continue to decline
• Legal & General and AXA Sun Life dominate market share
• Protection market displays increased innovation...
• ...but the legislative and regulatory landscape continues to change
• Channels of distribution continue to shift
• Mintel' s consumer research results highlight the extent of protection gap
  • Figure 4: Ownership of life insurance and other protection products, August 2007
• Lack of trust is major factor behind the protection gap
• Product Background
• Term assurance
  • Figure 5: Overview of term assurance
• Level-term assurance
• Decreasing term assurance
• Whole-of-life insurance
  • Figure 6: Overview of whole-of-life sector
• Two discrete areas
• Typical uses
• Tax planning uses and writing in trust
• Endowment insurance
• With-profits endowments
• Typical uses
• Dramatic fall from favour
• Broader Market Environment
• Key points summary
• Growth in PDI broadly positive but some caution required
  • Figure 7: Trends in PDI, consumer expenditure, and savings, 2002-12
• Investment income boosts life insurer profits
  • Figure 8: FTSE 100 and FTSE All Share -- daily movements, May 1997-June 2007
• Market performance affects demand for life protection products
• Population changes in target markets could affect demand
  • Figure 9: Size of UK population, by age group, 1999-2011
• Increase in one-person households reduces need for life cover
  • Figure 10: Total number of UK households and one-person households, 1991-2012
• Housing market slowdown to hit term assurance sales
  • Figure 11: Number of UK property transactions, 1995-2007
• Opportunities to cross-sell life protection are declining
  • Figure 12: Number of new loans from home purchase, including number of loans for FTB, 1999-2006
• High house prices have both positive and negative implications
  • Figure 13: Average house prices in the UK, 1970-2006
• Increased opportunities for IHT planning
  • Figure 14: Estates liable for inheritance tax, 2000-04
• Internal Market Environment
• Key points summary
• The £2.3 trillion protection gap
  • Figure 15: The life assurance protection gap, 2002-06
• Mortality rates continue to drop
  • Figure 16: Age-standardised mortality rate for all causes in England & Wales, by gender, 1906-2006
• Majority of deaths among the over-75s
  • Figure 17: Age distribution of registered deaths in England & Wales, by gender, 2006
• Heart disease and strokes remain the biggest killers in the UK
• Longevity continues to rise...
  • Figure 18: Life-expectancy projections for people aged 65, by gender, 1987-2052
• ...but there is still pressure on margins
• Number of smokers gradually declining
  • Figure 19: Cigarette smoking status in GB, by gender, 1991-2006
• Impact of the smoking ban
• Other medical issues affecting life insurance sector
• Genetic testing -- set for review in 2008
• HIV -- removing discrimination
• Influenza pandemic -- a reduced threat?
• Legislative and Regulatory Environment
• Key points summary
• Non-disclosure ' most important issue' facing the protection sector
• Law Commission proposes non-contestability period
• U-turn on Pension Term Assurance
• Regulatory update
• The abolition of the age 70 rule
• Changes to ICOB -- move to a principles-based regime
• Retail Distribution Review
• Risk-based approach could lead to changes in capital requirements for insurers
• Treating customers fairly (TCF)
• Competitive Context
• Key points summary
• The evolution of the market
• Cost and apathy are key barriers in term assurance market
  • Figure 20: Motivations and barriers to purchase for term assurance policies
• Product popularity reliant on stockmarket performance
  • Figure 21: Motivations and barriers to purchase for advice-based whole-of-life policies
• Savings accounts compete with guaranteed-acceptance plans
  • Figure 22: Motivations and barriers to purchase for guaranteed-acceptance whole-of-life policies
• Strengths and Weaknesses
  • Figure 23: Key strengths and weakness of the UK life protection market, 2007
• Unique product, scope to expand, innovation and falling rates...
• ...but a lack of trust, over-regulation, static market and too price-driven
• Market Size and Forecast
• Key points summary
• Slight growth in 2006, but unlikely to be matched in 2007
  • Figure 24: Volume and value of new individual regular-premium insurance policies written, 2001-07
• Life insurance -- performance and outlook vary between products
  • Figure 25: Number of new individual regular-premium insurance policies written, by sector, 2001-07
• Term assurance -- PTA led to 11% increase in sales in 2006
• Whole-of-life -- showing signs of growth
• Endowments -- decline to continue, albeit at a slower rate
• Value of new premiums falls as average policy value falls
  • Figure 26: Value of new individual regular life insurance premiums, by sector, 2001-07
• Term assurance -- market continues to contract
• Whole-of-life -- an improving market
• Endowments -- value of new premiums declines by 84% in six years
• Business in force stabilises
  • Figure 27: Individual life insurance business in force at year-end, and sums insured, by product type, 2001-06
• Forecast
  • Figure 28: Forecast of the number of new regular-premium individual term and whole-of-life policies written, 2007-12
• Term Assurance -- Growth recovery from the tightening of interest rates
• Whole-of-life -- Decline continues but at a slower rate
  • Figure 29: Forecast of the value of new regular-premium individual term and whole-of-life policies, at current and constant prices, 2007-12
• Term assurance -- an upturn in value, as volume sales increase
• Whole-of-life -- Value decreasing at a greater rate than volume
• Factors used in the forecast
• Segment Performance
• Key points summary
• Non-mortgage term sales boosted by performance of PTA in 2006...
  • Figure 30: Mortgage-related and other term assurance as proportion of total number of term assurance polices sold, 2001-06
• ...but subsequent U-turn on PTA will reverse the trend in 2007
• Whole-of-life market divided between volume and value
  • Figure 31: Proportion of unit-linked and non-unit-linked whole-of-life plans sold, by volume, 2002-07
• Guaranteed-acceptance plans boost the volume of the market...
• ...but unit-linked sales account for 53% of new written premiums
  • Figure 32: Proportion of unit-linked and non-unit-linked whole-of-life plans sold, by value, 2002-07
• Is the end in sight for the mortgage-related endowment sector?
  • Figure 33: Number of endowment policed sold, mortgage-related and other, 2002-06
• Market Share
• Key points summary
• Legal & General holds 23% of the market share
  • Figure 34: Life company rankings, breakdown of new regular-premium business for all life insurance, 2004-06
• Legal & General tops market share for term assurance
  • Figure 35: Top five providers of individual term assurance, based on new business volumes, 2006
• AXA Sun Life accounts for 54% of whole-of-life market
  • Figure 36: Top five providers of individual whole-of-life assurance, based on new business volumes, 2006
• Companies and Products
• Market background
• Market Developments
• New entrants -- Insurers and providers
• New/changing partnerships
• Mergers and Acquisitions
• Company profiles
• Term assurance -- Major players
• Legal & General
• Norwich Union Life
• Whole-of-Life
• AXA Sun Life
• Brand Communication and Promotion
• Key points summary
• The importance of promotion
• Life insurance in top ten financial products in terms of adspend
  • Figure 37: Advertising expenditure for all financial products, 2002/03-2006/07
• Half of total adspend on over-50s guaranteed-acceptance plans
  • Figure 38: Advertising expenditure on life insurance products, by sector, 2002/03-2006/07
• AXA Sun Life has been leading advertiser since 2004
  • Figure 39: Advertising expenditure by top 15 advertisers of life insurance, 2002/03-2006/07
• Direct mail accounts for 55% of adspend
  • Figure 40: Advertising expenditure on life insurance, by media type, 2007
• Recent developments
• Channels to Market
• Key points summary
• Key sales channels
• Single-tie sales lose ground in mortgage-related term assurance market
  • Figure 41: Distribution of value share mortgage-related term assurance, by channel, 2000-06
• IFAs dominate the non-mortgage-related term assurance market
  • Figure 42: Distribution value share of non-mortgage-related term assurance, by channel, 2000-06
• Both IFAs and direct providers strengthen position in WOL market
  • Figure 43: Distribution value share of whole-of-life premiums, by channel, 2000-06
• Bancassurers continue to gain market share
  • Figure 44: Proportion of life protection business obtained through bancassurance, 2005 and 2006
• FSA survey reveals sales channel can affect persistency rate
• Purchasing distribution to assure future
• Insurer/broker acquisitions in 2006/07:
• The Consumer -- Product Ownership
• Key points summary
• Four in ten people have no protection products
  • Figure 45: Ownership of life insurance and other protection products, August 2007
• Term assurance accounts for two thirds of all individual life policies
  • Figure 46: Ownership of life insurance, by product type, August 2007
• Implications and opportunities
• Half of adults aged 35-44 have life insurance
  • Figure 47: Ownership of life insurance and other protection products, by gender, age, socio-economic group and gross annual household income, August 2007
• Implications and opportunities
• Marriage increases likelihood to have life protection
  • Figure 48: Ownership of life insurance and other protection products, by marital status, lifestage, age of children in household and working status, August 2007
• Implications and opportunities
• Mortgage ownership is major determinant in protection market
  • Figure 49: Ownership of life insurance and other protection products, by household tenure, TV region, technology users and newspaper readership, August 2007
• Implications and opportunities
• Four in ten mortgagors have term assurance
  • Figure 50: Ownership of life insurance and other protection products, by mortgage ownership, August 2007
• Implications and opportunities
• CHAID analysis
  • Figure 51: Key targets for life and other protection products, August 2007
• Implications and opportunities
  • Figure 52: The differentiation in penetration between overall population and highlighted target groups, August 2007
• Two thirds of people with one protection policy have life insurance
  • Figure 53: Ownership breakdown, by number of protection products types owned, August 2007
• Implications and opportunities
• 56% of people aged 25-34 have no protection products in place
  • Figure 54: Ownership breakdown, by gender, age, socio-economic group, lifestage, gross annual household income and housing tenure, August 2007
• Implications and opportunities
• The Consumer -- Arranging Protection and Financial Planning
• Key points summary
• Four in ten people took expert advice when arranging life insurance
  • Figure 55: Arranging life insurance, August 2007
• Implications and opportunities
• Socio-economic group governs likelihood to seek advice
  • Figure 56: Method used to arrange life insurance, by gender, age and socio-economic group, August 2007
• Parents are more likely to seek expert advice
  • Figure 57: Method used to arrange life insurance, by marital status, lifestage, age of children in household and housing tenure, August 2007
• Implications and opportunities
• Internet usage is not reducing demand for advice
  • Figure 58: Method used to arrange life insurance, by working status, technology users, Internet usage and newspaper readership, August 2007
• Implications and opportunities
• Three quarters want to ensure their dependents are financially secure
  • Figure 59: Agreement with statements concerning financial planning matters, by life insurance policyholders and non-life insurance subscribers, August 2007
• Implications and opportunities
• Over-65s are the most concerned about financial planning
  • Figure 60: Agreement with statements concerning financial planning matters, by gender, age, socio-economic group and gross annual household income, August 2007
• Implications and opportunities
• A quarter of retirees are considering taking IHT advice
  • Figure 61: Agreement with statements concerning financial planning matters, by marital status, lifestage, age of children in household and working status, August 2007
• Implications and opportunities
• Broadsheet readers are more likely to consider financial planning issues
  • Figure 62: Agreement with statements concerning financial planning matters, by housing tenure, TV region, technology users and newspaper readership, August 2007
• Implications and opportunities
• 54% of life insurance policyholders do not have a will
  • Figure 63: Agreement with statement ' I have made a will' , by ownership of life protection and other protection products, August 2007
• IHT not a priority for protection product holders
  • Figure 64: Agreement with the statement ' I have taken/am considering taking advice about inheritance tax planning' , by ownership of life insurance and other protection products, August 2007
• Two thirds without protection agree that it is important
  • Figure 65: Agreement with the statement ' It is very important to me that my dependents are financially secure in the event of my death' , by ownership of life insurance and other protection products, August 2007