The pandemic has seen an increased demand for protection products amongst consumers, according to the 2021 Protection Review report from consultancy Hymans Robertson, although many still have concerns surrounding the cost of protection.
Findings state that a staggering 39% of consumers are now more likely to buy insurance products than they were prior to the pandemic, however 31% are turned off by the cost.
Now more than ever, people are aware of the fragility of their own circumstances. The report found that the main reason for the increase in sales of protection products stems from witnessing the effects COVID can have on an individual's health, with 35% seeking life insurance, 37% critical illness.
Not surprisingly, 34% of consumers surveyed have sought income protection following a greater awareness of how devastating a loss of income would be.
Discussing the report's findings, Karen Brolly, head of Product, Insurance and Financial Services at Hymans Robertson, said: "The barriers that people put up as reasons not to buy protection - not only cost but also a perceived lack of risk - underline the need for a renewed focus on education about the broader value of protection products.
"There is so much that insurers and advisers can do to educate consumers about the importance of having appropriate protection insurance in place, and assessing financial resilience in difficult times, such as those brought about by the pandemic, can help to bring protection needs to the forefront."