It’s often said that protection insurance has “gone to the dogs”. Looking at the data, that observation may be more literal than rhetorical.

 

According to FCA life insurance sales figures, 2.19 million life policies were written in 2024. The 2025 Swiss Re Term & Health Watch reported 545,251 critical illness (CIC) plans sold in the same year. In contrast, the ABI confirmed that 4.6 million pet insurance policies were purchased during 2024.

 

Are consumers genuinely more inclined to insure their pets than themselves and their families?

 

A longer-term view reinforces the point. Pet insurance has grown steadily in popularity over the past 12 years. In 2013, 2.7 million policies were sold; by 2023 that had risen to 4.4 million. The ABI reports that 25% of dogs and 12% of cats are now insured.

 

CIC sales tell a different story. In 2023, 531,700 policies were arranged, compared with 638,269 in 2013.

 

Mortgage lending over the same period paints yet another picture of growth — from 734,000 mortgages in 2013 to 1.2 million in 2023. Against that backdrop, it is reasonable to ask why CIC sales have fallen by 15% while pet insurance has increased by 70% and mortgage activity by 66%.

 

Was 2013 simply an unusually strong year for critical illness? Unlikely. Back in 2003, total CIC sales reached an all-time high of one million policies, albeit with some written as riders to endowment plans.

 

Insurers report that today’s sales are broadly split between lower-cost core cover and more comprehensive — and more expensive — plans. Yet Swiss Re’s latest publication confirms that overall term insurance sales have now declined for the fourth consecutive year.

 

Distribution trends are also shifting. Aggregator sites account for more than 8% of the life insurance market. Critical illness penetration through these channels is lower, at around 3%, but online purchasing across all protection types is rising. It seems inevitable that more consumers will choose non-advised routes.

 

That raises concerns. Without advice, individuals risk selecting unsuitable or overly limited cover, and may have reduced recourse to the Financial Ombudsman Service in the event of a dispute.

 

Consumer understanding is undoubtedly part of the challenge, although education is a long-term solution. Overly complex and poorly written policy literature does little to encourage engagement.

 

Perhaps the more pressing issue, however, is adviser focus. Many advisers now concentrate primarily on mortgages, pensions and investments, with protection receiving less attention.

 

When I joined the industry in 1978, there were approximately 300,000 insurance advisers specialising in protection. Today, that figure is less than 15% of what it once was, a decline accelerated by regulation and the Retail Distribution Review.

 

There are positive examples. Networks such as Mortgage Advice Bureau have demonstrated that protection volumes can be materially increased. Initiatives such as structured signposting — where mortgage or wealth advisers refer clients to a dedicated protection specialist on a shared commission basis — have gained traction. Yet despite these efforts, overall sales continue to drift lower.

 

The number of insurers serving the adviser market has also reduced significantly, from 51 in 1995 to around 10 today.

 

Whichever route advisers choose — direct advice, referral, or partnership — ensuring clients are properly protected remains essential. If we help clients take on what is often the largest financial commitment of their lives, it is both prudent and principled to ensure they are safeguarded against premature death and serious illness.

 

CI Expert