More than a third of advisers (37%) who write health insurance expect demand to increase by 2026, according to health and life insurer The Exeter.
This is a clear change compared to 2025, when more than one in five advisors expected a decline in demand (21%). Half of advisors expect demand to remain the same (50%).
Despite this confidence, advisors who take out health insurance continue to face cost pressure.
Nearly four in ten cite the higher cost of doing business as their biggest challenge in 2026 (38%), compared to 32% in 2025.
The pressure on consumer finances is also a key concern, highlighted by over a quarter of health insurance advisers (28%).
Demand for both income insurance and life insurance is expected to continue into 2026. More than half of advisors expect demand to remain stable in both product lines, with about a third expecting growth.
However, advisors who write income and life insurance policies face similar challenges.
Rising operating costs remain the biggest concern, averaging around 36% for both products. The pressure on affordability for consumers is also great: about 30% cite financial tensions as a barrier.
Regulatory changes are another shared theme, highlighted by 32% of advisors for both products.
This reflects the FCA’s ongoing work, including the Market study for pure protectionwhich is expected to be completed in 2026.
Steve Bryan, director of distribution and marketing at Exeter, said: “Advisers are currently facing a combination of challenges, from rising costs within their own businesses to continued pressure on affordability for their clients, and that is not something to be underestimated. What is encouraging, however, is that they are continuing to adapt and find ways to meet these challenges, keeping insurance firmly on the agenda.
“We see this particularly in health insurance, where confidence in demand remains high as advisers respond to ongoing concerns about access to care and waiting times for treatments.”