"As an industry we are not focused enough on reminding people of the value of protection. By neglecting value, we allow consumers to focus on price."
Additionally, over half (55%) said they would not trust robo-advice, with just a quarter (25%) agreeing they would.
The research from The Syndicate also found that although 42% said advice was not a necessary part of the buying process, a third (32%) suggested that it was important when buying protection and42% said they believed professional advice could ensure they got the right level of insurance.
However The Syndicate said that the "mass indifferent" are one of the most challenging groups for the protection industry to deal with given their lack of interest in engaging with insurance.
A third (33%) of people without cover (including life insurance, critical illness and income protection) view protection as a luxury they can't afford.
When asked why they hadn't taken out any financial protection, over a quarter of those without cover (27%) said they did not want to pay money into something that may not be needed, a fifth (19%) said they didn't think they needed protection, while another 19% didn't trust the insurer to pay out.
The report believes that communication could be key to addressing this issue. When asking policyholders whether they had been contacted by their insurer in the past two years, two-thirds (65%) said they had not heard from them.
But of this group, over three quarters (77%) were happy not to have been contacted, preferring to forget about their purchase. However, 41% of the youngest age group (18 to 25 year-olds) said they would like to have heard from their insurer, preferably by email, showing that a preference for a lack of communication could reverse long-term. In general, the younger generation are more trusting of insurers and more open to being contacted about offers relevant to them.
The majority of advisers agreed, saying that a client's protection needs should be reviewed at least every three years.
Peter Le Beau, The Syndicate, commented: "It appears that insurance largely remains a grudge purchase for many and the majority are indifferent to the subject completely. As an industry we are not focused enough on reminding people of the value of protection. By neglecting value, we allow consumers to focus on price. This rationale also allows those who don't trust insurers and believe that claims will not be paid to justify not purchasing cover.
"There are a number of areas for concern highlighted in this report but there is also positivity in terms of opportunities for the future. We see a younger generation emerging who are not as cynical about protection insurance, who are not as financially savvy but who want contact with their insurer. The industry must seize the opportunity that this generation presents if the story of protection insurance is to find a happy ending."
