DUBLIN, Oct. 13, 2020 /PRNewswire/ — The “Income Protection – United Kingdom (UK) Protection Insurance 2020″ report has been added to ResearchAndMarkets.com’s offering.

The report provides an in-depth assessment of the income protection market, looking at current and historical market sizes with regards to changes in contracts and premiums. It examines how income protection products are distributed and highlights key changes in the competitive landscape, as well as the proposition of the key market players. It provides five-year forecasts of contracts and premiums to 2024 and discusses how the market, distribution, and products offered are likely to change in the future, as well as the reasons for these changes.

The UK’s income protection market has grown strongly in recent years. Of the main protection products, income protection was the only product to register double-digit growth in premiums in 2019. Advised sales remain far more common than non-advised sales. However, the non-advice channel has experienced the fastest growth over recent years in terms of new business premiums.

Income protection providers face the prospects of increased claims due to job losses and increased illnesses as a result of COVID-19. As such, insurers have been forced to withdraw unemployment cover from the market and add exclusions to the wording of those policies that remain. The market is anticipated to plunge in 2020 before returning to growth. Financial hardship will highlight how vulnerable people are without a regular income, be it the result of unemployment or illness. This will generate strong demand for income protection products over the coming years.

Scope

  • New business premiums in the income protection market grew 18.3% to reach £65.5m in 2019, making it the only protection product to register double-digit growth by this measure.
  • Aviva strengthened its position as the largest provider of income protection insurance,

By Brian Levitt, Global Market Strategist

History suggests a potential increase in the capital gains tax rate might not have as big an impact on the stock market as many assume.

I’ve been on my soapbox lately demonstrating that history suggests that elections do not mean nearly as much for equity markets as many investors suspect. Case in point, the average annual return on the US equity market, as represented by the S&P 500 Index, has been 10.1% since 1957.1 Per the rule of 72, that’s a doubling of one’s investments roughly every 7.1 years across the terms of 12 different US presidents. For more potential fodder to ease election concerns, please refer to “2020 US Presidential Election: 10 Truths No Matter Who Wins.”

The first question I inevitably receive as I conclude my presentation and come down from my platform (and by that I mean the same chair I have been sitting in for the past seven months) is, “But what if the capital gains tax is increased?” Joe Biden has proposed increasing the top tax rate for capital gains for the highest earners to 39.6% from 23.8%.2 Inherent in that question is a concern that investors will dump their equity positions prior to the end of the year to lock in the lower capital gains rate, thereby driving markets meaningfully lower.

I make the following five points to respond to that ever-present question:

1. Yes, it is true that the two previous hikes in capital gains taxes (the Tax Reform of 1986 and the American Taxpayer Relief Act of 2012) led to an increase in stock selling. For example, the total capital gains realized in 1986 climbed by over 7% of US gross domestic product, up from 3.9% the prior year.3 The increase in total