The evolution of protection in 2026
Royal London’s Protection Director Carrie Johnson comments on major trends in the protection market over the past year and offers insights into opportunities and challenges for advisers and clients heading into 2026.
As 2025 comes to an end, the protection industry is experiencing a period of transformation. This is being shaped by evolving consumer needs, greater regulatory uncertainty, and increasing expectations for technology, most notably AI, to impact our industry. Pleasingly, this year we have seen steady progress, as firms have embedded Consumer Duty into their everyday operations, which is now an integral part of how business is conducted.
Throughout the year, the FCA Pure Protection Market Study has been a central focus within the industry, engaging advisers, insurers and many other industry players in shaping its direction. While the final report is expected early in 2026, current signals suggest it will not introduce significant upheaval. The ongoing dialogue between the regulator and industry has shaped understanding and expectations. With an increasing focus on the protection gap, I am hopeful it will lead to opportunities to reach more people to ensure they get the cover that is so important to protect their financial resilience.
Technology continues to be a catalyst for change throughout the industry. The increased interest and adoption of AI solutions is not only freeing us up from everyday admin but absorbing significant amounts of resource to create new solutions, particularly in underwriting. After several years talking about this, there is light ahead where advances in summarisation capability can give underwriters more time to focus on complex cases, resulting in better decisions and faster turnarounds.
Even with ongoing financial pressures, many people continue to see the benefit of income protection and whole of life cover, in part due to the genuine experiences shared by others.
But, as an industry, we have more to do to make sure we reach people who really need us. Political changes have also brought pensions into the inheritance tax conversation, increasing awareness of and creating a real need for estate planning, where protection can play a crucial role.
Product development in 2025 has been characterised by incremental improvements, with more flexible options, expanded value-added benefits, and enhanced tools for advisers, collectively driving meaningful progress. As the industry looks to 2026, it is poised for further evolution, propelled by personalisation, automation, engagement, and regulation. We will see increasingly tailored premiums and services, leveraging richer data and deeper digital journeys.
The stage is set for a year of dynamic change, as the industry continues to adapt and innovate for the future.
