United Kingdom Funeral Plans Consumer Research Report 2020: Almost 160,000 Funeral Plan Sales but COVID-19 Cuts Net Sales Numbers – ResearchAndMarkets.com | Financial Buzz

United Kingdom Funeral Plans Consumer Research Report 2020: Almost 160,000 Funeral Plan Sales but COVID-19 Cuts Net Sales Numbers – ResearchAndMarkets.com

The “UK Funeral Plans Consumer Research Report 2020” report has been added to ResearchAndMarkets.com’s offering.

This report looks at the pre-paid funeral plan market and sets that into the context of how consumers pay for their funeral. It considers consumer use of funeral plans and other means they use to pay for their funeral, especially over50s insurance. It includes an assessment of the size of the market and its trends.

At the end of 2020, the publisher expects there to be almost 1.6 million funeral plans in force (i.e. not drawn down). While the number has continued to rise in recent years, there has been a notable slowdown in growth in recent years. The number of new sales has declined steadily since 2016 mainly because of competition from over50s life insurance policies.

Like the UK economy, the funeral plan market has faced a roller coaster year in 2020 because of COVID-19. As a result of COVID-19, net new sales in 2020 (gross sales less plans drawn down) are expected to be only around one-quarter of the number seen in 2019.

The funeral plan market is being reshaped today by a number of key factors, including:

  • COVID-19, leading to a significant rise in deaths in 2020 and possibly into 2021, thereby increasing the number of plans drawn down and making it harder for funeral directors to sell new plans.
  • Increasing competition from substitute products like over 50s life insurance and traditional life insurance.
  • The continued rise in funeral costs.
  • Proposed new FCA regulation of funeral plans, which will significantly raise costs for plan providers and possibly prevent some from selling new policies.

Other key findings from the research are:

  • The total number of policies in force will grow by 6.3% over 2020 to 2025.
  • Dignity, the Co-op Group and Golden Charter are the largest providers of funeral plans in the UK.
  • Just under one-in-ten consumers own a funeral plan.
  • There is a significant lack of understanding of plans among consumers who own them.

Key Topics Covered:

EXECUTIVE SUMMARY

  • Funeral plan market and the Over50s life insurance market
  • A market being reshaped by new developments
  • 1.6 million plans in force and almost 160,000 gross sales
  • Little growth in plans in force over the coming years
  • Less than one-in-ten consumers owns a funeral plan
  • A significant lack of understanding among consumers
  • A near 50:50 split between lump sum and regular payments

INTRODUCTION

HOW CONSUMERS PREFER TO FINANCE THEIR FUNERAL

  • Just over half of adults have made provision for their funeral
  • It is not just older consumers who own funeral plans
  • Affluent married men with children the core market

FUNERAL PLANS

  • Most funeral plan holders use FPA providers
  • Almost half of funeral plan owners pay via a lump sum
  • Most plan owners paid between £4,000-£4,500 for their plans
  • Lower cost plans more likely to be paid by single payment

CONSUMER UNDERSTANDING

  • Significant gaps in consumer understanding

NEW DEVELOPMENTS

  • COVID-19
  • Cost of funerals are rising
  • Treasury pushes for FCA regulation of funeral plans
  • Could traditional life insurance become a significant competitive product?

MAJOR PLAYERS

  • A market with considerable overlap
  • Dignity and Co-op Funeralcare lead the funeral plan market
  • Sun Life (Phoenix Life) leads the Over50s insurance market
  • Alternative Planning Company Limited
  • Avalon Funeral Plans
  • Co-operative Societies
  • Ecclesiastical Planning Services (EPS)
  • Dignity Plc
  • Lodge Brothers (Family Funerals Trust Limited)
  • Funeral Planning Services
  • Golden Charter
  • Golden Leaves
  • Sun Life
  • Examples of other players

MARKET SIZE AND TRENDS

  • Almost 160,000 funeral plan sales but COVID-19 cuts net sales numbers
  • Almost 1.6 million plans in force

FUTURE

  • Future FCA regulation
  • CMA Investigation into the funeral market
  • Forecast

ASSOCIATIONS

For more information about this report visit https://www.researchandmarkets.com/r/zgdld

Contacts

ResearchAndMarkets.com

Laura Wood, Senior Press Manager

press@researchandmarkets.com

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