According to iPipeline, annual premium equivalent (APE) is up 17% compared to the same period last year and new business has risen by around 4% versus the same period last year.
The report noted that APE growth was driven by a 77% increase in “other types of cover”, adding that there was a 92% increase in underwritten whole-of-life sales.
The latter was likely taken out to mitigate inheritance tax, with iPipeline noting it would be interesting if this would be a continuing trend.
The report stated that level or decreasing life has achieved the biggest rise in APE, going up by 16% compared to the same period last year.
Multi-benefit APE increased by 10% over that time, while critical illness and income protection APE both grew by a modest 4%.
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Advisers surveyed also reported more optimism, with an average score of 7.8 out of 10 for the year ahead. This is up from 7.3 around six months ago.
Paul Yates, product strategy director at iPipeline, said: “There has been a positive mood in the protection market in the first quarter of 2025, and these figures back up that sentiment.
“It’s encouraging to see all indicators pointing in the right direction, reflecting the growing awareness around the need for financial protection, particularly among younger adults. Given the uncertain nature of the world economy and rise in stamp duty, it will be very interesting to see if these increases continue into Q2 and beyond.”
Tom Conner, strategy development director at Dewberry Insurance, said: “Following a strong 2024 for protection sales, it does feel like the momentum in the market is carrying on into this year.
“The last few years have shown people that anyone can be vulnerable to illness and the importance of becoming more financially resilient. It does feel like clients are more open to conversations around protection and securing the things they have worked so hard to achieve. Hopefully, this sense of optimism will continue for the rest of the year and beyond.”
