UK health and life insurer The Exeter has released new data showing that rising business costs have become a significantly greater challenge for advisers in 2026, while confidence in demand for protection products has improved compared with 2025.
Health insurance
Health insurance shows the clearest improvement in adviser sentiment. More than a third of advisers writing health insurance expect demand to increase in 2026 (37%), a marked change from 2025 when over one in five anticipated a fall in demand (21%). Half of advisers expect demand to remain the same (50%).
Despite this confidence, advisers writing health insurance continue to face cost pressures. Nearly four in ten cite the increased cost of doing business as their biggest challenge in 2026 (38%), up from 32% in 2025. Pressure on consumer finances is also a key concern, highlighted by more than a quarter of advisers writing health insurance (28%).
Income protection and life insurance
Demand for both income protection and life insurance is expected to continue in 2026. More than half of advisers expect demand across both product lines to remain stable, with around a third anticipating growth.
However, advisers writing income protection and life insurance face similar challenges. Rising business costs remain the top concern, averaging around 36% across both products. Affordability pressures for consumers also feature strongly, with around 30% highlighting financial strain as a barrier.
Regulatory change is another shared theme, highlighted by 32% of advisers across both products which reflects the FCA’s ongoing work, including the Pure Protection Market Study expected to conclude in 2026.
Steve Bryan, Director of Distribution and Marketing at The Exeter, commented:
“Advisers are facing a combination of challenges at the moment, from rising costs within their own businesses to ongoing affordability pressures for their clients, and that’s not something to underestimate. What’s encouraging, though, is they continue to adapt and find ways through those challenges, keeping insurance firmly on the agenda.
We’re seeing that particularly in health insurance, where confidence in demand remains high as advisers respond to ongoing concerns around access to care and treatment waiting times. If advisers are continuing to overcome obstacles, insurers need to ensure that we’re doing our part to back that effort and help them deliver the best outcomes for their clients.”
ENDS
Notes to Editors
Methodology
This research was conducted among 750 UK financial advisers, comprising 250 advisers writing health insurance, 250 writing income protection and 250 writing life insurance, in November 2025
PR Contact
Tom Stewart-Walvin, Rostrum
T: +44 (0)7855 689 302
E: theexeter@rostrum.agency
About The Exeter
The Exeter is a leading protection and healthcare insurer who have been supporting UK families in the event of ill health or injury since 1888.
Formerly known as the Exeter Friendly Society and Pioneer Friendly Society, The Exeter is a mutual friendly society. This means it’s owned by members and run for their benefit, rather than shareholders.
The Exeter is a trading name of Exeter Friendly Society Limited, which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (Register number 205309) and is incorporated under the Friendly Societies Act 1992 Register No. 91F with its registered office at Lakeside House, Emperor Way, Exeter, England EX1 3FD.