The estimated full-year growth for the protection market is sitting around 20 per cent, according to figures from technology provider IRESS.
Overall protection is already up 13.7 per cent from 31 December 2017 with data showing the figure could settle between 19.5 per cent and 21 per cent at the end of the month.
IRESS’s quote and transaction portal, The Exchange, tracked sales data across the industry with term and critical illness jumping 22.9 per cent since last year.
Income protection has seen a 29.2 per cent increase in sales, while mortgage protection has seen growth of 7.9 per cent.
Multi-benefit sales – which combine two or three protection policies such as critical illness, income protection or mortgage protection – grew 12.3 per cent between November 2017 and November 2018.
This is up 19.3 per cent from full year growth figures as at 31 December last year.
IRESS executive general manager Dave Miller says the protection market is expected to continue growing strongly next year as well, with sales driven predominantly by the aid of new technologies.
He says: “2018 is going to be a record breaking year in terms of protection growth. We’ve seen some good product innovation in the protection market this year, utilising our technology to service under-protected customers.
“Looking forward to next year, I believe this trend of innovation will continue and we’ll start to see some transformative efficiency benefits, delivered through our technology.”
Addressing the protection gap will be critical in technology delivery for IRESS next year, Miller adds.
IRESS will launch a “buy-now” offering at the start of 2019 which is expected to enable brokers to sell more protection and wrap it in with various other products.
Miller says: “At the same time, this will reduce the client’s work and also lessen process times.”