the ongoing challenge of energising the market. The responsibility to drive meaningful change continues to rest heavily on intermediaries, and advice remains a critical lever. As a distributor, we’re actively lobbying for support across several areas. However, progress in process development remain fairly stagnant. It could be argued that while current products are largely fit for purpose, they lack the flexibility and innovation needed to truly inspire market change. Could the upcoming FCA Review be the catalyst for change? Possibly—but any concrete shifts still seem a way off. In the meantime, here’s where we’re seeing some movement and interest… Inheritance Tax (IHT) Inheritance Tax (IHT) is quickly becoming one of the most talked-about topics in the IFA and Wealth Management space, with upcoming changes being the topic most on people’s lips. At Paradigm Protect, we’ve seen a certainly seen a significant percentage growth in Whole of Life (WOL) policy completions since the start of the year—reflecting growing concern among clients and advisers alike. Rumours around changes to Tax-Free Cash limits and the treatment of previously exempt Pension Funds are fuelling this interest. A recent article highlighted that pension withdrawals increased by 35.9% over the past year, amid concerns over IHT implications and potential changes to the 25% tax-free lump sum. The overall value of money being withdrawn from pension pots increased to £70.1bn in 2024/25, up from £52.2bn in 2023/24, according to data from the FCA. Indeed the FCA’s retirement income data found that in Mike Allison Director of Protection Paradigm Protect Protection Market Update 04 AUTUMN PROTECT NEWSLETTER Welcome to the latest edition of the Paradigm Protect Newsletter! This month, we’re bringing you a mix of insights and perspectives designed to inform and inspire. Among the highlights is a thought-provoking article from LV= on Income Protection, which offers a practical tip that could make a real difference for clients on benefits. This draws on our September webinar, when Carl Heard from LV= shared a compelling example: by arranging for LV= to pay a client’s Income Protection benefit directly to their lender, the client could retain a significantly larger portion of their monthly income. It’s a smart strategy that’s well worth exploring. Dive in to discover more! The Market – What’s Hot (and Not) in Protection Recent reinsurer stats show that the protection industry experienced modest year-on-year growth in Q1 2025, both in terms of Annual Premium Equivalent (APE) and number of policies sold. • Policies sold: Just over 531,000, up from 512,000 in Q1 2024 • Total APE: Reached £205 million, up from £196 million last year • Growth rates: 3.7% in policy volume and 4.6% in APE While these figures are encouraging, the growth remains relatively flat—highlighting
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