Almost three in 10 (29 per cent) advisers say their clients are more conscious about protection than ever before, research from MetLife has revealed.
MetLife's Everyday Risk Report found advisers are seeing a “marked” increase in the volume of clients wanting to protect themselves with 34 per cent seeking cover.
MetLife head of individual protection, Rich Horner, said: “One reason we created the UK's first Everyday Risk Report is to help advisers understand and easily communicate their clients' risks.
“But as an industry we also need to collectively help improve people’s understanding of the types of protection cover available – ones that help relieve financial stress and worry for everyday people who just want to live their best lives, every single day.”
Despite the increased desire to protect themselves, the research found there is still a knowledge gap on what the right type of cover is for their needs.
Some 31 per cent of advisers confirmed their clients had taken out the wrong type of protection before seeking advice, while 29 per cent said most customers have little understanding of the kinds of protection products available for them.
A quarter often did not understand the difference in financial protection offerings.
The report also underlined the importance of protection cover, reporting that accidents make up one in 10 of all hospital visits, and 76 per cent of these lead to admission for further treatment.
Analysis showed daily visits to Accident and Emergency units across UK hospitals have been on the rise for a decade.
An average of 16 million people visit major hospital A&E units, and 9 million at minor units, every year.
However, even with accidents being common, not all financial protection policies provide the cover that people really need - leaving many in the UK financially vulnerable in their everyday life.
Consumer research from MetLife found that UK adults have previously needed, or would need, an average of £1,217 from their savings to support them should they need to take time off work or out of their business due to accident or illness.
“Accidents are far from a rare occurrence, and the Everyday Risk Report exposes the raw facts; that the scale of hospital visits continues to grow,” Horner added.
“The simplest of daily tasks gone wrong can turn your whole life around. Imagine falling out of bed, falling over on your way to work or having a serious asthma attack while kicking a ball around.
“The financial difficulties an injury or illness can cause shouldn't be underestimated. Trying to get better with financial concerns while you are earning less, or not at all, can have a real impact both at the time, and far into the future.”
tom.dunstan@ft.com
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