Nearly 4 in 10 consumers (39%) say they are are more likely to buy protection insurance as a result of their experiences during the pandemic, particularly the impact on others.

The Coronavirus pandemic has been the biggest spur to the increase in protection insurance, according to a new report from pensions and financial services consultants Hyman Robertson.

In terms of life insurance, 35% of people said they had seen the impact of the pandemic on others' health, 33% were more aware of risks to their health and 31% feel their health is more vulnerable.

Similar figures were seen for Critical Illness Cover and Income Protection (see table below).

2021 Protection Report: Impact of Pandemic

Source: Hymans Robertson

Despite concerns about the pandemic, price also remains a primary consideration, with 31% of consumers saying they have not purchased protection policies because they think they would be too expensive. 

In its 2021 Protection Report, Hymans says value-add services, increasingly common in recent years, were often a leading factor in encouraging people to purchase a particular policy over another. 

The most popular addition was legal services, with over a third (34%) citing this as something that would lead them to buy a policy. 

Health and wellbeing services were the second highest in popularity with 27% citing this, closely followed by access to virtual GPs with 26% of people claiming this would make them favour one policy over another. 

Nutrition and dietary advice were the lowest ranked option, cited by only 15%.  

About 1 in 10 (12%) over 55s say value added services would make no difference, compared to under 35s who said at least one option of value added service would influence their purchase. 

Karen Brolly, head of product, insurance and financial services, Hymans Robertson, said: “It isn’t a surprise that the turbulence of the past 18 months has led people to re-evaluate their priorities and look at whether additional protection could be worthwhile. The focus on health has undoubtably brought this into sharper focus.  Yet, despite the demand, cost will always be a consideration so this is something that insurers must be mindful about."