Product innovation in income protection helped drive an 11% rise in policy sales in 2008, the Income Protection Task Force says.
The action group, co-chaired by Clive Waller and Peter Le Beau, says original launches from the likes of Fortis and LV= also led to a staggering rise in new premiums last year compared with 2007.
According to the Association of British Insurers (ABI), the number of new contracts purchased rose from 118,000 in 2007 to 130,000 in 2008, an increase of 11%. Elsewhere, new premiums rose from £4m to £55m.
"It is to be hoped that 2007's figure was a low water mark in income protection production," Peter Le Beau, managing director of Le Beau Visage, says.
"Last year, apart from the rise in sales, there were a number of new product innovations which shows a lot of attention is being paid to innovation in this market.
"We welcome this and believe it will continue, particularly given the uncertainty over payment protection insurance at the present time."
Clive Waller adds: "It is clearly very positive to see production moving in the right way; we hope this momentum in sales will be maintained throughout the current difficult economic circumstances.
"Income protection is a product that virtually all working people should consider."IFAonline
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