Gross sales of recent particular person earnings safety insurance policies rose 16% year-on-year to hit 247,000 in 2023, in line with new figures from insurance coverage and funding supplier commerce physique the ABI.
Nearly all (97%) of particular person earnings safety merchandise have been offered with recommendation.
Gross sales of standalone essential sickness insurance policies totalled 75,700 in 2023, nearly 4 instances increased than 10 years in the past and a document excessive.
Yvonne Braun, director of coverage, long run financial savings, well being and safety on the ABI, mentioned: “Monetary resilience – the power to resist a monetary shock – is a massively essential subject.
“It’s encouraging to see that so many individuals recognise that earnings safety and significant sickness insurance coverage are an essential a part of Monetary Planning and play a vital position in offering a monetary security web.”
Nevertheless, gross sales of mortgage-related time period assurance fell as exercise within the UK housing market slowed.
Gross sales of time period assurance merchandise have been on the lowest ranges since 2017 with 1.5m insurance policies offered final 12 months.
Non-mortgage associated time period assurance gross sales fell 8% in 2023 following stronger gross sales over the earlier 4 years. Mortgage-related time period gross sales fell 10% year-on-year with 449,000 insurance policies offered.
Total gross sales of particular person contracts (together with time period assurance, essential sickness, earnings safety, entire of life, related life plans and enterprise safety) in 2023 fell to the bottom volumes seen since 2018. Some 2.1m particular person contracts have been offered in 2023 in comparison with 2.2m in 2022.