The third annual Profile of an IP Customer report, produced by the Income Protection Task Force (IPTF) in collaboration with Iress, reveals a market growing in momentum, but still far short of the consumers who need it most.
The Income Protection Task Force (IPTF) today launches the third edition of its annual Profile of an IP Customer report, produced in collaboration with Iress. Drawing on nearly 55,000 Income Protection applications submitted via The Exchange and three years of cumulative market insight, this comprehensive picture shows who is buying Income Protection in the UK, how, and why, and where the biggest opportunities to grow the market still lie.
Key Findings
The latest report reveals a market growing in scale and ambition, but one still grappling with a protection gap that remains, in the report’s own words, “stubbornly large”:
Overall IP applications rose 7% compared to 2024, with application volumes up 56% since 2022.
- Multi-benefit (menu) plans now account for 49% of all IP benefit applications, with 88% of multi-benefit buyers aged 45 or under.
- The most common age range for buying a multi-benefit plan is 26–35, signalling a generational shift toward building financial resilience earlier.
- Yet despite this growth, 85% of Income Protection needs in the UK remain unmet, and 76% of people have no income protection in place at all.
- Average monthly benefit amounts continue to rise but still fall over £1,200 short of the average monthly expenditure for mortgage-holding households.
- 41% of UK adults feel financially protected, but only 19% actually have adequate cover, creating a 22% “perception gap” that the report describes as a call to action for the industry.
Women are 25% more likely to engage with Income Protection when presented as part of a holistic, multi-benefit solution, yet women’s uptake of standalone IP remains disproportionately low.
“While more people are engaging with protection, too many still remain under-protected, under-informed, or unsure whether the cover they have is enough. For the IPTF, that makes this report more than a snapshot of market activity. It is a practical tool for advisers, providers and the wider industry to better understand today’s customer and help turn awareness into meaningful financial resilience.” Vicky Churcher, Executive Director, IPTF
A Younger, More Integrated Market
One of the clearest trends across three years of data is the younger age profile of IP buyers. For multi-benefit plans, 88% of buyers are now aged 45 or under, with the peak buying age concentrated between 26 and 35. Consumers who are using integrated plans as an affordable entry point to financial protection before they reach peak financial pressure in their late 30s and 40s. The report describes this as a ‘Milestone Convergence’ a generation engaging with protection earlier than any before it.
Over 70% of individual policies now run into retirement, reflecting the parallel trend of mortgages extending deeper into later life, with the three most common end-of-mortgage ages now standing at 68, 69 and 74.
“More than 85% of income protection needs in the UK remain unmet, highlighting the scale of the protection gap and the significant opportunity for the industry to better support customers. Through the data and insights underpinning this third edition, we hope to help the market better understand evolving consumer needs and continue driving meaningful change.
We have already seen tangible improvements in adviser behaviour and product design as a direct result of our previous reports, and we are proud to continue supporting the work of the IPTF by delivering the market intelligence that helps shape real progress in the protection industry.” Jane Irwin, Protection Product Lead, Iress
From Insight to Action
The report calls on advisers, providers, and industry stakeholders to use its findings to shape better conversations with clients, improve access to protection for underserved groups, including women, younger buyers, and those in complex or non-standard occupations and to ensure that growth in IP applications is matched by growth in the quality and adequacy of cover.
The Profile of an IP Customer 2025 is available to download at https://iptf.co.uk/profile-of-an-ip-customer/ IPTF welcomes responses and reflections from the industry at [email protected].
