The perceived value of a protection policy drops after its sale and is leading to lapsed policies, The Syndicate has said.
Research from the partnership, comprising Hannover Re, The Protection Review, Zurich, PruProtect, Beagle Street and Ageas Protect, found 70% of those with policies had had no contact with their provider in the last two years.
The report, ‘Consumer Emotion; Measuring trust, value and loyalty in the protection arena', concluded the benefits of a protection policy "are not tangible enough for those who have not made a claim".
When asked, 26% of those cancelling IP policies said they saw no point in having one anymore, compared with 25% for CI and 18% for life cover.
The report also shows continuing confusion over IP and PPI, noting that the distinction needed to be clearly communicated.
Commenting, Phil Jeynes, head of account development at PruProtect, said it was concerning that people were lapsing as a result of failing to see the benefits of cover.
He added: "We are not demonstrating clearly enough that our plans have an ongoing value, a status quo we are determined to change.
"Continual engagement with customers, aligned with high quality products that meet people's expectations is how we must alter public perception that protection is an expensive or luxury purchase, all too redily cancelled."
