Brokers and IFAs who rely on the critical illness insurance (CII) market as a major source of revenue have been urged to consider alternatives in a new report from Datamonitor.
Datamonitor said it was not predicting a crash in the market but said growth had slowed dramatically.
The CII market is today worth £330m, up 65% on its value in 2000. But Datamonitor said that while the market is forecast to rise to £389m by 2008, actual growth will be less than 20% during this period.
“While this is not a market in collapse, the good times have undoubtedly come to an end,” said Datamonitor lead financial analyst and author of the report Janette Weir.
“The housing boom is cooling off. Although it will still enable further growth in mortgage-related sales to take place, they will be at a much-reduced rate to that seen in 2000 and 2001.
The Critical Illness 2004 report, providing detailed analysis of the UK critical illness market, is available through the Insurance Times website. Simply click on the ‘Research and Statistics’ button on the navigation bar to go through to the joint Insurance Times and Datamonitor reports site.
