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Term sales increase as IFAs take a 36% share

Term insurance sales in the UK rose by 8 per cent between 1999 and 2000 and IFAs accounted for over a third of sales, according to GE Frankona Re research.

The findings, which cover providers of stand-alone term insurance in the UK, reveals that although more people are buying policies online, IFAs are still the most popular channel.

Total standalone term insurance sales were 1,054,703 last year compared with 973,436 in 1999 and one in four of the population has term insurance, bringing the total number of policies in force to 7,291,026.

Although the internet accounted for 3 per cent of sales last year, or about 30,000 of term insurance policy sales, IFAs sold around 380,000 of term insurance policies, giving them a 36 per cent share of the market.

Level term insurance made up 51 per cent of sales, decreasing term insurance accounted for 36 per cent, pension term represented 4 per cent, family income benefit 2 per cent and convertible term 1 per cent.

GE Frankona Re head of sales Peter Elliot says: “It comes as no surprise that internet sales are beginning to make an inroad into term distribution.

“The product is simple to understand and is keenly priced, both of which make it ideal for consumer distribution over the internet.”

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