Protection Premiership 2000-2025

  1. Term 2020. The market in 2020.
  2. Term 2000, 2010, 2020. The top 5.
  3. Critical Illness. The top 5.
  4. Term 2025. Who will be top 5 in 2025?
  5. Income Protection. Not yet written.
  6. Whole Life. Not yet written.

The term top 5 in 2020

This article examines volumes and market shares for the term market (life cover and critical illness cover) for the years 2000-2020, paying particular attention to the movements in 2020.

I would like to acknowledge and thank Ron Wheatcroft of Swiss Re for fielding a number of data queries. Any errors and views expressed here are my own.

Sales and market share of the top 5

Market volume and top 5 share:

The market and top 5 share Source: TermWatch 2001-2021

Key features:

Splitting the top 5

We now include 5 new lines, showing the market share for each of positions 1-5:

Gaps in the protection market Source: TermWatch 2001-2021

Market shares for positions 2-4 almost converged in 2020, illustrated by their overlapping labels. The numbers behind the graph showed the biggest lead of 1st over 2nd position was in 2015 (20.6%) followed by 2020 (19.5%). The 4th-5th gap is also at a record high.

Gaps in the top 5

Let’s look at those gaps before 2020:

Gaps in the protection market Source: TermWatch 2001-2021

In 2020:

Sales and market shares for 2020

The numbers behind the 2020 part of the graphs are as follows:

# Company Policies Market share
1 Legal & General 504,061 31.7%
2 Royal London 194,785 12.3%
3 Aviva 182,931 11.5%
4 AIG 182,013 11.5%
5 Zurich 101,946 6.4%

Source: TermWatch 2021

Over 2000-2020 the top position was taken by either Aviva (3 times from 2000-2002) or L&G (18 times from 2003-2020). That won’t change soon. Why is L&G so successful?

The real tension is in positions 2-4: in 2020 Aviva, having fallen to 3rd for the first time, was less than 1000 policies ahead of AIG. What happens next?

The 2020 top 5: market shares 2017-2020

For 2017-2020, inclusive, the top 5 positions have been taken by the same insurers. L&G has always been top, Zurich always 5th, with a little movement in 2-4.

Over 2017-2020 the top 5’s share reduced from 77.7% to 73.4%. In that context:

Top 5 market share 2017-2020

Where next?

My aspiration is to extend this post, giving:

I’ve always had a talent for intentions!