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”.
“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.
| Week | Most recommended provider | Second most recommended | Third most recommended |
| 1(&2) | Royal London | Guardian | Aviva |
| 3 | Aviva | Guardian | Vitality |
| 4 | Vitality | Royal London | The Exeter |
| 5 | British Friendly | Guardian | AIG |
| 6 | AIG | Aviva | Vitality |
| 7 | AIG | Guardian | Aviva |
| 8 | Guardian | AIG | Aviva |
| 9 | AIG | LV= | Aviva |
| 10 | AIG | LV= | The Exeter |
| 11 | AIG | British Friendly | Guardian |
| 12 | Guardian | AIG | Royal London |
| 13 | AIG | British Friendly | Royal London |
| 14 | AIG | Guardian | British Friendly |
| 15 | AIG | Guardian | LV= |
| 16 | Guardian | AIG | Royal London |
| 17 | AIG | Guardian | Aviva |
| 18 | Guardian | AIG | The Exeter |
| 19 | Guardian | LV= | AIG |
| 20 | Aviva | AIG | British Friendly |
| 21 | Aviva | AIG | Guardian |
| 22 | AIG | Royal London | Guardian |
| 23 | Guardian | Aviva | British Friendly |
| 24 | Aviva | Guardian | AIG |
| 25 | Guardian | Royal London | AIG |
| 26 | AIG | Aviva | Legal & 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
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