Consumers overwhelmingly expect financial advisers to discuss protection against everyday accidents as part of their protection planning, yet significant gaps in understanding and provision are leaving many exposed, according to a major new report launched today from National Friendly.
The friendly society's "Bruised Britain #2: The Mishap Gap" report, which surveyed 5,000 UK adults, reveals that three-quarters (74%) of consumers would expect an adviser to discuss protecting their income from everyday accidents as well as illness and loss of life as part of a discussion on their protection needs, climbing to 81% of Gen Z and 84% of Millennials.
Furthermore, 58% of consumers would expect advisers, platforms or banks to advise on Accident Only Income Protection (AOIP) when discussing income protection – rising to 62% among Gen Z and 67% among Millennials. Among consumers who already have an adviser, half (50%) say it's likely they'd discuss accident-only or short-term injury income protection with their adviser, versus focusing solely on life or critical illness cover. This rises dramatically among younger consumers, with 78% of Gen Z and 77% of Millennials saying they're likely to have this conversation.
The affordability advantage
The research uncovers a compelling opportunity around AOIP's affordability. Almost one in two (49%) consumers who said they were interested in IP would consider a policy that only covered them for accidents if it was available at a cheaper price – rising to 56% of Millennials.
Price sensitivity emerged as a key theme, with 30% of all consumers saying affordable or lower pricing would make them more likely to buy accident cover, rising to 37% among Gen X. However, the research exposes a significant knowledge gap: 40% of consumers have no idea what AOIP costs per month. On average, consumers estimate AOIP costs £27.80 per month, with younger people assuming it costs more (£29.90) and 23% of consumers believe that it costs over £30 pm. National Friendly’s AOIP cover starts at just £7.50 a month.
Awareness without understanding
While 61% of consumers claim to have heard of AOIP – rising to 67% of Gen Z and 65% of Millennials – the research identifies many barriers to AOIP ownership. This includes the perceived cost (32% of consumers, 39% among Gen X), while 16% don't trust AOIP to pay out and 10% remain confused by the options available (rising to 16% among Gen Z and 15% among Millennials).
Tellingly, 10% say they've never heard of AOIP, 7% don't know where to get it (15% of Gen Z), and 5% reported their adviser didn't suggest it.
Consumers are clear about what would help them engage with AOIP: 16% want clearer explanation of what's covered and not covered, 15% seek transparency around exclusions (20% of Gen Z), and 15% want clear and simple policy terms (20% of Gen Z and Millennials).
Emma Vaughan, Managing Director, Omni Protect, said: "It’s encouraging to see consumers - especially younger ones - open to more flexible protection options. If nearly half of younger consumers would consider income protection for accident-only cover at a lower price, it’s a clear signal that affordability and simplicity are key to unlocking engagement. This kind of modular approach could be a powerful gateway into broader protection conversations, helping advisers meet clients where they are while still delivering meaningful cover.”
Graham Singleton, CEO of National Friendly, said: "This research reveals a critical disconnect in the protection market. Consumers – particularly younger generations – are clearly signaling they want accident cover to be part of the conversation, yet many advisers aren't routinely discussing it, and consumers fundamentally misunderstand what AOIP costs and covers.
"The headline is stark: three in five consumers expect accident-only income protection to be discussed if they seek advice about income protection. Yet only 4% currently own AOIP policies. This represents both a significant gap in consumer protection and a substantial market opportunity.
"What's particularly striking is the affordability angle. When consumers understand that AOIP can provide meaningful protection at a lower price point than full income protection, appetite increases dramatically – especially among younger people. The challenge for our industry is to close the awareness gap and ensure accident cover becomes a routine part of protection conversations."
In its report, National Friendly identifies four critical factors for realising the potential of non-traditional cover:
Better consumer education and awareness about product value and reliability.
Addressing cost misconceptions.
Broadening protection conversations beyond death and catastrophic accidents / illness to include the financial impact of everyday accidents.
Creating affordable, flexible, accessible products that meet diverse needs.
Current ownership levels
The research found that 7% of consumers say they have standard income protection, rising to 9% of Gen Z and 14% of Millennials. Similarly, 7% have accident, sickness and unemployment (ASU) cover. Just 4% currently have AOIP, rising to 7% among Millennials. National Friendly's AOIP and Friendly Shield products have seen a growing appetite, achieving 136% growth in just six months and comprising 46% of its overall sales volume.
Joshua Sargent CEO at Clark UK, said: “By demonstrating the value of the product and highlighting the points of differentiation, AOIP can become a prominent solution for many UK consumers, and we have already witnessed this. Sometimes self-insurance is proposed by customers as an alternative route to any form of protection insurance, but explaining the potential impact accidents can have on their typical savings tends to highlight the level of inadequacy.”
National Friendly's income protection product family consists of Accident Only Income Protection, Friendly Shield and Standard Income Protection – the latter two policies covering both accidents and sickness. With no medical underwriting, Friendly Shield is designed to cover the needs highlighted in the Bruised Britain report, providing faster access to financial support when it's needed most, with cover extending to family members including children.
For more information on National Friendly, please visit www.nationalfriendly.co.uk and read the full’ Bruised Britain #2 – The Mishap Gap’ report here
