The Intermediary – October 2026 - Flipbook - Page 77
P RO T E C T I O N
Opinion
Why are so many
still uninsured?
A
ffordability is
certainly a factor in
the UK protection
gap; too many people
walk away without
any cover when full
Income Protection (IP) is considered
beyond their budget. But treating
affordability as the main explanation
misses a more fundamental issue:
many have never considered how they
would cope if their income stopped, let
alone what protection might cost.
Before talking about price, we
need to talk about understanding. Do
people recognise the financial risks
they face? Do they know what cover
could do for them? Are we reaching
them at the right moment?
The advice-led UK protection
market works well, highlighted in the
Financial Conduct Authority’s (FCA)
final findings in its Pure Protection
Market Study. The failure point
identified is market engagement.
58% of UK adults carry no protection
cover, and 59% of those have never
even considered it. That points to a
challenge that begins before a quote
is ever produced, and the age-old
argument that protection policies are
sold, not bought.
Barrier 1: Complexity
Complexity, real or perceived, can
appear in many forms in protection,
from deferred periods and indexation
to lengthy applications and exclusions
for pre-existing conditions.
Advisers understand these
distinctions, but clients may struggle
to translate them into a simple
answer: what would this cover do for
me? Education must begin with the
household, rather than the policy:
which bills would still need paying,
what support is already available, and
how long would it last?
Providers must make application
journeys and the limits of cover easier
to understand. A shorter application
can help, but clarity about eligibility,
exclusions and claims maers
just as much.
OLIVER JONES
is commercial director
at National Friendly
Barrier 2: Time
Many people may not encounter
financial advice until a major life
event, such as buying a home. Yet
their exposure starts long before then.
For mortgage advisers, the challenge
is finding space for protection within
an already demanding transaction.
The conversation must be easy to
open, with a clear route to further
advice where needed. Buying a home
is an important opportunity, but it
should not be the first time someone
considers what would happen if their
income stopped.
Barrier 3: Confidence
Confidence can work in two
directions. Some people assume
illness or injury will not affect them,
and some that employer sick pay and
savings would be enough.
On the other hand, there’s also oen
a lack of confidence in insurers. This
oen relates to trust. For example,
a fear of non-payout, complexity
(back to that), including a lack of
understanding how a financial
product calculates loss or overlaps
with state benefits.
In short, people prefer to do
nothing, rather than make a
wrong decision.
Relevance and reach
Protection cannot help people if they
don’t know it exists, don’t recognise
the risks it can address, or are never
given the opportunity to discuss it.
Our research suggests consumers
are ready for those conversations.
Across a survey of 5,000 UK adults,
three-quarters (74%) said they would
expect an adviser to discuss protecting
their income against everyday
accidents, alongside illness and loss of
life. Among Gen Z and Millennials,
that rises to 81% and 84% respectively.
More than half of consumers (58%)
would expect an adviser, platform or
bank to raise accident-only income
protection when discussing how to
protect their income. Again, the figure
is higher among younger generations,
reaching 62% for Gen Z and 67% for
Millennials.
The demand for broader protection
conversations is already there. Risk
awareness is also evolving. Almost one
in four Gen Z consumers (24%) believe
they’re more likely than average to
experience an accident or mishap. And
71% of under-35s who had experienced
an accident said they needed to take
unplanned time away from work; a
potentially significant financial shock
for people who may already have
limited resilience.
Younger consumers may not yet
have a mortgage, dependants or
the traditional life-stage triggers
associated with protection. But they
still have incomes to protect and
financial commitments to meet.
Renting a home, becoming selfemployed or simply seeing a friend
experience an unexpected setback
can all prompt questions about
financial resilience.
And this isn’t exclusively a
generational issue. Accidents and
unexpected interruptions to income
can affect anyone, at any stage of life –
with or without a mortgage.
Closing the gap starts with making
protection understandable and
relevant. Providers need to equip
advisers with clearer explanations and
easier journeys, while advisers need
support to bring financial resilience
into everyday client conversations.
We shouldn’t assume that everyone
without cover has rejected it on cost.
For many, the decision has never been
put in front of them. The work begins
before anything is quoted. ●
October 2026 | The Intermediary
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