Richard Waters, Head of Production Distribution, HSBC Life UK, spoke to Paul Roberts, Propositions and Distribution Director at CIExpert, and Britney Trussler, Protection Manager at Dynamo, to get their predictions for the coming year, alongside handy tips for advisers.

1. Get on top of 2025’s major trends

The FCA’s market study into how pure protection insurance products are sold will dominate 2025. Although the results are not yet in, providers will already be making improvements. Top of their agenda is likely to be improving claim handling turnaround times, which should boost customer and adviser satisfaction and increase provider reputation and customer loyalty. 

Running alongside that, providers will be continuing to improve service standards for customers and advisers to ensure the industry continues to grow and deliver best outcomes.

Another major trend for 2025 will be the continued focus on value-added benefits (VABs). The top protection trends in the past year have been about adding value and enhancing cover, providing better outcomes for customers whether they’re claiming on their protection insurance or not, and this will continue into 2025.

At HSBC Life UK, our cover now includes the customer’s partner and children up to age 23, with a free annual health check and mental health services available for children aged 16 to 23. We’ve broadened definitions within mental health and thoughts of suicide and included new conditions, such as type 2 diabetes, to reflect changing customer needs. In 2025, we predict more customers will start to recognise the value of and make use of their VABs. We encourage this with 6-monthly reminders about VABs, and again within the annual statement.

2. Be prepared for big changes

The life insurance market is going to see some big changes in 2025, says Britney Trussler, Protection Manager at Dynamo and winner of Rising Star, Intermediary in the 2024 COVER Women and Protection and Health Awards.

“I think we’ll see a greater focus on underwriting this year,” she says. “The way evidence is currently collected is outdated and a huge pain point. The NHS is obviously overstretched and completing a medical report for an insurer is understandably low on a GP’s list of priorities. Clients are stuck waiting months on end for GP reports to be returned.

“By the time the GP report is back, clients are often completing on their homes, or they haven’t been able to. There may also be health changes in the meantime which can leave customers vulnerable.

“The industry needs to address these concerns and find better ways to get the medical information they need without making it painful for clients. I think we’ll see a movement towards leveraging technology, such as data from NHS apps, and even providers accepting specialist letters directly from clients. There’s an urgent need for systemic change and for providers to be more forward thinking.”

3. Boost your education and awareness

The needs and circumstances of the average family are changing rapidly, and understanding where your clients are at can be key to forging and maintaining mutually beneficial relationships. Paul Roberts of CIExpert, authors of the Critical Thinking Report on the UK critical illness market, is a great believer in education and awareness. What do consumers really need and want? You can only truly know if you commit to educating yourself, says Roberts.

He cites the movement away from joint critical illness policies to single policies as an example of a changing landscape. A rise in interest in single policies, as recommended by CIExpert in its ‘Single is Best’ campaign, can be understood in the context of greater awareness of financial independence, coercive relationships, economic abuse and related issues. While products themselves cannot be quickly or easily changed, the way we talk about them with customers can. Which is why awareness and understanding of the needs of vulnerable customers and the changing social and economic context is invaluable.

HSBC Life UK’s adviser toolkit is packed with information for advisers and clients. Customers might not know, for example, that with HSBC Life UK they get access to VABs such as a second medical opinion, unlimited 24/7 digital GP consultations, mental health services, remote physiotherapy, and an annual health check.

And For more self-education that counts towards your CPD targets, The Protection Coach, Matthew Chapman, has released his free Blueprint to Protection Success course. “The Protection Coach’s resources are a great place to educate yourself and open up conversations with clients”, says Britney Trussler of Dynamo.

4. Cultivate your connections

We know great networks are essential for bolstering success and you can start cultivating yours today, says Paul Roberts. He adds: “When we collaborate, we can all help grow the market together by inspiring innovation in advice.”

Perhaps have a meaningful conversation with a peer today or resolve to have one at your next networking event. Don’t have any events booked in yet? Now’s the time to get booking.

Britney Trussler’s top picks for learning and networking events in 2025 include anything hosted by COVER magazine or Protection Review, including ProtectX and ProtectZ. She says Protection Review’s insightful events tend to dive into new – and sometimes controversial – topics and can help advisers engage the younger generation. She added that the Health and Protection Awards in October are always a must-attend.

5. Keep it simple

According to research by CIExpert, the average consumer doesn’t understand what critical illness cover is. And those who have critical illness cover don’t always understand what they’ve been buying.

To make sure customers get fair value and good outcomes, they need to have a full understanding of the products advisers are recommending.

“My biggest tip is to keep things simple,” says Britney Trussler. “Talk to clients in a way that they can easily understand; use everyday language, not long-winded explanations. Don’t overcomplicate things – it confuses people and makes it harder for them to see the value of what you’re offering.

“Simplifying conversations also helps build trust. When a client feels like they get it, they’re much more likely to trust you and feel confident in their decisions. Focus on understanding their concerns and providing a solution, rather than overloading them with industry jargon and product intricacies.

“I like to use tools like risk reality calculators to give my clients a direct and tangible figure. It’s something right in front of them that they can resonate with.”

In conclusion, 2025 is going to be a big year for the industry as we look to further understand customer needs in this changing landscape and provide better experiences and outcomes. Advisers can find a wealth of tools and information at HSBC Life UK, and we look forward to catching up with you throughout the year.

HSBC Life (UK) Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England (United Kingdom) number 00088695. Registered Office: 8 Canada Square, London E14 5HQ. Our Financial Services Register number is 133435. HSBC Life (UK) Limited is a member of the Association of British Insurers.