Protection  

McKenna: 2024 is the year income protection is recognised as ‘essential’

McKenna: 2024 is the year income protection is recognised as ‘essential’
“The quality of people’s products doesn’t change week on week so the volatility is from price changes” said Ian McKenna

Adviser favorability data shows 2024 is “the year income protection is recognised as essential”, according to Protection Guru founder, Ian McKenna.

McKenna’s comment follows the release of data by Protection Guru which shows how volatile favorability in the market has become, something which he attributed to increased competition leading to price changes.

McKenna explained, at the start of the year, Protection Guru asked advisers specifically which product they were recommending, thereby providing a “really rich vein of data”.

Article continues after advert

“Our research system is the only one that, across all protection products, looks at both quality and price,” he added.

“Definition of value is more than price alone for advisers and we get to see that explicitly.”

The data detailed that AIG spent the most weeks as the number one recommended protection provider in 2024, with 11 weeks at the top spot.

However, this changed on a near weekly basis with Royal London, Aviva, Vitality, British Friendly, and Guardian all claiming the poll position at one point.

This volatility increased further in the other two podium positions, featuring LV, British Friendly, Legal & General, and The Exeter.

WeekMost recommended providerSecond most recommendedThird most recommended
1(&2)Royal LondonGuardianAviva
3AvivaGuardianVitality
4VitalityRoyal LondonThe Exeter
5British FriendlyGuardianAIG
6AIGAvivaVitality
7AIGGuardianAviva
8GuardianAIGAviva
9AIGLV=Aviva
10AIGLV=The Exeter
11AIGBritish FriendlyGuardian
12GuardianAIGRoyal London
13AIGBritish FriendlyRoyal London
14AIGGuardianBritish Friendly
15AIGGuardianLV=
16GuardianAIGRoyal London
17AIGGuardianAviva
18GuardianAIGThe Exeter
19GuardianLV=AIG
20AvivaAIGBritish Friendly
21AvivaAIGGuardian
22AIGRoyal LondonGuardian
23GuardianAvivaBritish Friendly
24AvivaGuardianAIG
25GuardianRoyal LondonAIG
26AIGAvivaLegal & General
Credit: Protection Guru

McKenna attributed this volatility to the price factor, pointing out that “the quality of people’s products doesn’t change week on week so the volatility is from price changes”.

He also suggested that the volatility could be due to how competitive the market is at the moment.

“We’ve been trying to get income protection recognised as essential for years and this is the year where that seems to be happening, business is up, people are seeing growth, and that’s stimulating huge price competition,” he said.

As a result, McKenna cautioned: “If you’re setting up an income protection case, you probably want to set it up within a week of running the quotes.

“If somebody has quotes from you and they come back two or three weeks later, you probably want to run those quotes again. 

“That’s how competitive the market is.”

tom.dunstan@ft.com

What's your view?

Have your say in the comments section below or email us: ftadviser.newsdesk@ft.com