2026 protection market outlook: 'A highly volatile environment brings both opportunities and challenges'
We caught up with some of the Vitality senior leadership team for their predictions, wishes and expectations for the life industry over the year ahead
Greg Levine, CEO Vitality Group Operations
The world remains highly unpredictable in 2026, bringing both opportunities and challenges for our industry.
From a UK perspective, we’ll be hoping for a year of stability, with inflation coming down, steadier politics and a pragmatic push for productivity rather than dramatic changes and policy interventions. Households remain cautious though, particularly given the recent tax rises and stretched public services.
Inheritance tax will continue to be a big topic of discussion, and I expect the life market will grow off the back of this. Elsewhere, efforts by the industry to raise awareness of Income Protection will continue to bear fruit, with more younger people seeking out cover.
Elsewhere, I expect sustained growth in demand for private medical insurance (PMI), with more customers drawing on their cover more frequently—particularly for everyday care services such as virtual GP appointments, Talking Therapies and Physiotherapy.
Other key health trends will include prevention, digitisation, and managing demand, as we shift from reactive treatment, to personalised, data-driven prevention and onward care pathways.
More broadly across the insurance space, Artificial Intelligence (AI) will shift from concept to real-world application. We will see it increasingly be integrated into underwriting, claims processing, diagnostics, triage and clinical administration to improve productivity. The winners in this new environment will be those firms that can translate these applications into real savings and improved customer experiences, whilst maintaining those crucial human touchpoints when it really matters.
Justin Taurog, VitalityLife CEO
Looking to the year ahead, several key trends stand out. Products like Income Protection and Whole of Life will continue to see sustained growth[1], driven by greater consumer awareness and changing protection needs. This will give advisers more opportunities to provide comprehensive advice to their clients and protect more of what matters to them.
It’s clear that technology will continue to transform the protection landscape – from digital tools and underwriting to wearable devices and data-driven insights, allowing us to streamline processes and enhance customer engagement.
Customers will also continue to look for greater value and more holistic support from day one, particularly given the growing interest in health and longevity[2]. More people want solutions that are centred around their health and wellbeing, alongside the financial security provided by traditional protection products.
We wait with anticipation the findings of the FCA’s Pure Protection Market Study, which are due to be published in the next few months. This will be a key moment for our industry, and the initial signs are promising that the regulator recognises the critical role we play in strengthening people’s financial resilience.
Justin Garbutt, Director of IFA Distribution
With the volatile economic environment, various tax changes and other financial pressures facing households, high-quality, comprehensive advice will be as important as ever in 2026.
The financial planning advice landscape is undoubtedly shifting though, bringing with it opportunities for advisers to thrive in the years ahead and pivot to evolving client needs and expectations.
We’re currently living through a period of massive intergenerational wealth transfer, with over £300 billion set to be transferred from the Baby Boomers to younger generations over the next decade[3]. Engaging with that younger generation of future clients now is critical.
Conversations around protection insurance for renters, first-time buyers or those starting a family will be a great way of reaching the children of older clients and improving their financial resilience as early in life as possible. As we further embed Consumer Duty, this will also be critical to driving better client outcomes and avoiding foreseeable harm.
As I said last year, I also expect health to be the future of wealth. By making health and wellness a key part of client conversations advisers can deliver better outcomes for their clients and stronger, long-term relationships.
With the mortgage market also expected to ‘boom’ in 2026[4], protecting more homeowners with comprehensive cover must be on the agenda. There’s a growing recognition that cover should go beyond just the mortgage and I expect to see continued interest in products like Income Protection and Serious Illness Cover, alongside traditional mortgage life insurance.
All of this is against a backdrop of continuing increases in the cost of lead acquisition for adviser firms, driven by changes in consumer search activity. Companies that will thrive and succeed in this new environment will be those with a predictable and cost effective client source.
At Vitality, we have the largest distribution team in the UK market, and our Business Consultants will continue to support advisers to grow their protection business, whilst helping them to understand the benefits of getting their clients engaged in health and wellness.
Expect more innovation as well, as we continue to enhance our protection products to best meet the needs of clients in 2026. And where 2025 undoubtedly saw challenges across the industry around underwriting and claims processing, the increased use of AI will drive real efficiencies and improvements, freeing up underwriters time to deliver faster decisions and more predictable service levels.
Lara Fascione, Adviser Operations Director
As we enter 2026, the need to deliver a truly simplified service proposition has never been greater, particularly against the backdrop of ongoing economic pressures that challenge retention.
For customers, engagement will remain the cornerstone of loyalty and trust. With digital adoption accelerating, expectations are shifting toward personalised, proactive communication and seamless experiences. Initiatives such as tailored wellness programmes, intuitive self-service tools, transparent pricing, and smooth onboarding will be critical in reinforcing value beyond claims, especially in a Consumer Duty-driven environment. High-touch support during key lifecycle moments (onboarding, renewals, claims, and servicing) combined with data-driven insights will set insurers apart.
For Advisers, we are strengthening welcome and engagement strategies for their clients, delivering renewal experiences that feel relevant and timely, and redefining onboarding and service journeys through the growth of digital and AI technology. These enhancements will create a more connected experience, reduce lapse rates, and deepen trust, opening the door to long-term relationships and opportunities for cross-sell and sustainable growth.
Matthew Dijkstra, Chief Customer Officer
It’s clear that what customers expect from us is changing - and we need to adapt and keep pace. People want more than just products; they’re looking for businesses that truly understand them, make things simple, resolve issues quickly, and show real empathy.
The key to success? A culture that puts customers first and a commitment to act on feedback. Back in 2023, we launched our Customer Charter – a set of clear principles that guide how we deliver on customer expectations. These principles are now woven into everything we do and closely tied to our values. We’ve made great progress and in 2026 we’re determined to go even further.
A clients first touchpoint with us is usually the underwriting process and here we’ll be rolling out innovative technology such as AI summaries of GP reports to speed up the process and help advisers get their clients covered as quickly as possible.
At the moment of truth: the claim, we will also continue to roll our further enhancements to our claims experience, communications and payments over the next year. This builds on the work we’ve already done to remove the need for printed forms, give advisers the ability to monitor progress end-to-end and speed up payments.
We remain obsessed with our goal of delivering a world-class claims experience to both you and your clients.
Personal Protection from Vitality
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