At a time of high financial pressures, UK consumers are not only turning to brokers for specialist and technical advice when taking out life insurance, but they also perceive that they can help them get better value for their money, as per GlobalData findings. Seizing the opportunity, broker group Howden has completed the acquisition of health and life insurance broker Help Me Compare Group—also known as ActiveQuote—which will strengthen its presence in this space.
According to GlobalData’s 2023 UK Insurance Consumer Survey, 28.6% of consumers bought term assurance policies—the main type of life insurance—through brokers or independent financial advisers (IFAs) in 2023, making it the second-largest channel for the distribution of such products after direct sales. In particular, the advised channel is the main avenue for purchasing mortgage-related term assurance, accounting for 45.5% of the sales.
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Life insurance policies tend to be more complex in nature than other more commoditised non-life policies, driving demand for advised sales. Indeed, 26% of consumers felt they needed specialist advice when taking out term assurance, as per further findings from GlobalData’s 2023 UK Insurance Consumer Survey. Meanwhile, the proportion of respondents citing they used a broker or an IFA because they felt advisors could get them a better deal surged to 26%, up from 19.7% a year prior. Given the sharp increase in propensity—and with the cost-of-living crisis showing no signs of going away—it makes sense for brokers to seek ways to capitalise on the opportunity. Howden’s acquisition of Help Me Compare Group, a UK broker specialized in the health and life insurance category, will strengthen the intermediary’s position in this space, including the ability to cater to a broader range of clients. Earlier this year, Howden acquired French employee benefits broker AGEO Group, signalling the company’s strategy to strengthen in the protection category. While there are some signs that the cost-of-living crisis is slowing down, many households are feeling the pinch and will continue doing so over the short term. Cash-strapped consumers will have to review their finances and prioritise making decisions based on what is perceived as providing a good value for their cash, including when it comes to life insurance policy choices.
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By GlobalData
