The protection market has remained stable but is shifting as demand becomes more tailored and customers look for flexible and simpler products, according to Swiss Re’s Term & Health Watch 2026.
Around two million new protection policies were sold in 2025, up 1.7% on the previous year.
Jennifer Gilchrist, senior industry affairs manager at Swiss Re, said: “The market is not contracting, but rebalancing.
“Customers are taking a more considered approach to spending, working with advisers to align protection with their needs and budgets.”
Income protection grew by 11.9% in 2025, while demand for more comprehensive protection has become more selective.
The estate planning market expanded by nearly 30% with the introduction of joint life second death term assurance alongside whole of life, adding about 7,600 policies.
At the same time, joint life first death policies have declined, with new level term joint life policies falling by 30.6% in one year.
Charlie Dellar, principal analytics consultant at iPipeline, said: “Protection demand is evolving rather than retreating. 2025 saw continued growth in multi-benefit policies with income protection an increasingly popular benefit.
“Whilst advisers are focused on increased efficiency, it may be that consumer sentiment has also driven this demand – a sense of financial vulnerability driven by cost of living and economic pressures.”