Insurance Curator LONDON – The Association of British Insurers (ABI) unveiled its 2026-2028 strategic roadmap on Tuesday, marking a fundamental shift for the UK life insurance sector by prioritizing health prevention and proactive financial resilience to combat rising rates of long-term economic inactivity.
The three-year plan, titled "Securing the Future: A Partnership for Health," outlines a transition for the industry from a reactive safety net to an active partner in policyholders' wellness. The strategy focuses on deepening collaborations between insurers, the National Health Service (NHS), and private health providers to address the UK’s growing protection gap and the record 2.8 million people currently out of the workforce due to long-term sickness.
"The industry must evolve to meet the challenges of a changing workforce and an aging population," said Hannah Gurga, Director General of the ABI. "Our 2026-2028 strategy is designed to pivot the life and health insurance sectors toward early intervention. By focusing on prevention, we can help people live healthier lives for longer while strengthening the financial foundations of UK households."
A central pillar of the strategy involves "Partnerships for Health Prevention." According to the ABI, member companies will expand access to preventative services, such as digital health checks, mental health support, and wearable technology integration, as standard components of life and income protection policies.
The strategy comes as the UK life insurance market faces pressure to demonstrate value beyond death benefits. ABI data indicates that claims for mental health-related conditions and musculoskeletal disorders have surged, prompting insurers to invest in rehabilitation services that help employees return to work sooner.
Yvonne Braun, Director of Health and Protection at the ABI, noted that the strategy aims to normalize insurance as a proactive tool.
"We are moving away from a model where an insurer only hears from a customer at the point of crisis," Braun said. "Through data-driven partnerships, we can identify health risks earlier and provide the necessary interventions to prevent a medical issue from becoming a long-term disability."
On the financial side, the 2026-2028 roadmap addresses "proactive resilience" by advocating for simplified product structures and better consumer education. The ABI intends to work with the government to review the tax treatment of health-related insurance benefits, arguing that incentivizing employers to provide vocational rehabilitation could significantly reduce the burden on the state.
The roadmap also emphasizes the role of the "Protection Distributors Group" and other advisory bodies to ensure that life insurance becomes more inclusive. The ABI pledged to use the next three years to close the protection gap for "gig economy" workers and those in non-traditional employment who have historically been underserved by the life insurance market.
Industry analysts suggest the shift toward prevention is also a response to the Consumer Duty regulations enforced by the Financial Conduct Authority (FCA). By providing ongoing health services, insurers can demonstrate "ongoing value" to policyholders throughout the life of the contract.
The ABI confirmed it will begin publishing annual progress reports against these strategic goals starting in early 2027, with a focus on metrics related to workforce participation and the efficacy of early intervention programs.