Protection new business increased by around 4% in the first quarter of 2025, figures from iPipeline have revealed.
In addition to this boost in protection new business, the first quarter 2025 data showed the Annual Premium Equivalent (APE) was up 17% compared to the same period in 2024.
This APE growth was driven by a significant rise of 77% in the “other” types of cover.
Comparing the first quarter of 2024 to 2025, there was a 92% increase in underwritten Whole of Life sales in 2025, likely taken out to mitigate Inheritance Tax.
Beyond this outlier trend, level or decreasing life has achieved the biggest rise in APE, increasing 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%.
Advisers appearred to display increasing optimism regarding the industry.
According to iPipeline’s half-yearly adviser sentiment survey, advisers were feeling more positive about the year ahead, as indicated by an average score in March 2025 of 7.8 out of 10, which is an increase from the September 2024 score of 7.3 out of 10.
Advisers also said they remain more positive regarding how well current regulations are suited to peoples’ needs (7.3 out of 10 compared to 6.8 six months ago).
In addition, there was a significant rise in confidence that they will continue be protection advisers in five years.
The figure increased from 6.9 in September 2024 to 7.9 in March 2025, and indicated a growing optimism among protection advisers.
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, added: “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.”
