CIExpert has published ‘Critical Thinking 2026’, a report into the UK’s critical illness and income protection (IP) markets.
The research, sponsored by Royal London and Guardian, with support from Aviva, Legal & General, Vitality Life and Zurich, included the views of advisers and 10,000 consumers.
The research found that around seven in 10 consumers had not seen or heard anything about IP or critical illness cover in the past year.
This was unchanged from the previous report in 2024.
Where consumers did hold views, these were often based on false assumptions.
26% ruled out critical illness cover because they did not have a mortgage, while only 8% said they would use a payout to repay a mortgage.
Most said they would use it for income replacement, everyday expenses or health costs.
25% of consumers believed IP was only for the self-employed or those without sick pay.
19% thought having employer sick pay meant they did not need cover, rising to 27% of Gen Z.
Among advisers, 49% said their clients believed employer sick pay made income protection unnecessary.
Only 22% of consumers knew how long their employer sick pay would last.
After a clear explanation of the limits of sick pay and the role of income protection, 43% said the product felt more relevant, rising to 61% of Gen Z and 64% of Millennials.
Gen Z and Millennials were more receptive to protection when it was explained clearly.
38% of Millennials said they would prefer an enhanced critical illness plan once the differences were explained.
54% of Gen Z and 55% of Millennials were open to paying more for advanced services, such as tumour profiling, personalised cancer treatment and overseas treatment.
Cost was a barrier for ip, but when described as a small percentage of income – like a pension – 39% said 1% to 3% of earnings sounded reasonable.
Framing income protection around retirement savings raised relevance to 59% of Gen Z and 61% of Millennials.
51% of Millennials said they would be more likely to consider the product if it protected income until retirement.
36% of consumers listed NHS waiting times as their main health concern, rising to 45% of Boomers.
32% said they would be more likely to buy critical illness cover if it paid out once placed on an NHS waiting list, rising to 42% of Millennials.
42% of Gen Z expected a mixed or non-linear career, and 30% said portability of cover between jobs was important.
Advisers identified self-employed income uncertainty (45%), mixed income types (40%) and variable earnings (39%) as the main barriers to placing suitable cover.
Alan Lakey, director at CIExpert, said: “The protection industry has a habit of talking to itself and assuming the world is listening. It isn’t.
“When we launched Critical Thinking in 2024, we called for a revolution in how the industry thinks about protection.
“Critical Thinking 2026 shows some green shoots of change for the better; almost one in three advisers have changed how they recommend CIC as a direct result of the ‘Single is Best’ campaign – and that matters enormously.”
Lakey added: “But beyond our own bubble, seven in ten consumers have not seen or heard a thing about Critical Illness Cover or Income Protection in the last year.
“That gap between what we think we’re communicating and what people are actually hearing should be uncomfortable reading for everyone in this market.
“This report is a reality check as much as a celebration.”
He said: “Consumers aren’t rejecting these products – they simply don’t know they exist, or they’ve built up assumptions that nobody has yet challenged.
“That’s not a consumer problem; it’s an industry problem. What gives me genuine optimism is this: when advisers explain these products clearly – when they connect them to real health anxieties, real income fears, real life – attitudes shift.
“The evidence is right here. We know what works. The only question now is whether we have the collective will to do it at scale.”
The report called for industry collaboration to close the education gap.
The findings showed that when products were explained clearly and linked to real-life concerns, consumer engagement improved.
REACTION:
Fi Wynn, head of protection proposition at Royal London:
“The findings of this report make for stark reading, too many people miss out on a financial safety net simply because they don’t understand what’s available or how it can help them.
“We need to help cut through the confusion and ensure more consumers get the support they need, when they need it most.
“Genuine progress depends on collaboration, clear communication, and tackling outdated assumptions.
“As an industry we have a collective purpose to ensure that protection insurance becomes relevant and accessible to all.”
Hilary Banks, chief commercial officer at Guardian Financial Services:
“We’re confident that Critical Thinking 2026 will spark a renewed commitment to raising awareness and helping consumers better understand what protection really means for them.
“After seeing the impact of the first report in 2024, it’s brilliant to be sponsoring the research again and continuing to support the insight it brings.
“The findings make it clear there’s still work to do, but the message is ultimately positive – that explaining what we do as an industry more clearly has the potential to unlock growth and help more families get the protection they need.
“A big part of that is evolving how we explain, design and recommend protection so it keeps pace with the changing lives it’s designed to support.
“We also want to thank CIExpert for making this research happen, for the insight it brings us, for pushing us to think differently and, most importantly, for the improvements we’re confident we’ll see in customer understanding and engagement as a result.”
