13/10/2026

The Financial Conduct Authority (FCA) has said that millions of people in the UK are leaving themselves financially exposed, which is why it’s teaming up with the industry to get more people covered.

Majority of Brits Unprepared for Financial Emergencies

Announcing a new cross-industry push¹ on 21 September 2026, the regulator said around 58%² of adults have no Life Insurance, Critical Illness Cover or Income Protection. Of those, 59%² have never even considered buying it.

The FCA has announced it will work with industry partners to prompt people to think about protection at key life milestones; such as becoming a parent or buying/renting a home. The Association of British Insurers (ABI) will also work to cut delays in obtaining medical records.

This project will focus on groups who are disproportionately unprotected: renters, the self-employed, people on lower incomes, and those with pre-existing medical conditions.

People Forget to Protect Their Biggest Asset: Themselves

Our own research discovered similar gaps. Our 2025 Individual Protection Survey³ asked more than 1,000 UK adults about their protection, finding that:

36% of adults have no personal protection at all
Only 1 in 11 (9%) have Income Protection
Just 38% have Life Insurance and 15% have Critical Illness Cover
16% couldn’t last a month if their household’s main income stopped.

We insure our cars, phones and pets, but too often we don’t insure the income that pays for them.

What’s Stopping People Getting Protected?

Three of the biggest myths around protection insurance are that it’s too expensive, that sick pay will be sufficient, and that insurers don’t pay out. These myths are costly barriers, which our research uncovered:

“It’s Too Expensive”

Cost was the top reason people gave for going without insurance in our survey, but on average, they overestimated the cost of Income Protection by a whopping 63%³, and overestimated the price of Life Insurance by a staggering 400%³.

“I’ll Be Fine on Sick Pay and Savings”

41%³ said they’d rely on employer sick pay, but 24%³ didn’t know what they’re entitled to. For many people, it’s little more than Statutory Sick Pay. If your income stops, your rent, mortgage payments and bills carry on regardless.

“Insurers Don’t Pay Out”

48%³ of those asked believed fewer than half of Income Protection claims are successful. According to the ABI⁴, 97.9% of Income Protection claims and 96.5% of Life Insurance claims were paid in 2024.

Have Insurance? Still Check Your Gaps

Having an insurance policy isn’t the same as being properly protected. Only 10%³ of Life Insurance holders we asked said their policy is written into trust, and more than a third weren’t sure. Without a trust, a payout can be delayed by probate or pulled into an inheritance tax bill, at the moment a family needs it most.

Renters are among the groups the FCA highlighted as being unprotected. Around 19%⁵ of UK households rent privately, yet they often haven’t encountered the life events that prompt people to buy cover, such as taking out a mortgage.