Life Insurance in the UK: From 1700s Risk Pools to TikTok Ads.
Let’s be honest when most people think of life insurance, they picture paperwork, policy jargon, and something your mum tells you to get once you buy a house. But this slow burn financial product has been around for centuries, quietly shaping how Brits prepare for the worst and protect what matters.
So where did it all begin? And what does life insurance actually mean in today’s world of fintech apps and financial influencers?
Let’s rewind.
It All Started in London, 1583
The UK didn’t just dabble in life insurance it invented it. The first proper policy on record was signed in London in 1583. A guy called William Gibbons was insured for a year at the Royal Exchange. It was risky stuff, kind of like gambling on whether someone would die. (Awkward, but true.)
Things got more sophisticated in the 1700s. That’s when the Amicable Society launched basically the world’s first life insurance provider. Then came Equitable Life, the real game-changer. They were the first to figure out how to price premiums using actual maths and mortality rates, not vibes. Big shoutout to William Morgan and the other OG actuaries who turned this into a science.
By the end of the 1700s, life cover was becoming a thing not just for the elite, but slowly filtering into the mainstream.
The Industrial Boom and the “Man from the Pru”
Now fast forward to the 1800s. The UK was deep into the Industrial Revolution. Cities were growing, factories were buzzing, and people wanted security especially the working class.
Enter Prudential. You might’ve heard of the "Man from the Pru" real-life agents going door-to-door, collecting pennies from factory workers in exchange for tiny life policies. It was gritty, but it worked. By 1900, about one in three Brits had a Prudential policy. Wild, right?
Back then, life insurance wasn’t about investment growth or inheritance tax planning. It was about making sure your family could afford a funeral and wouldn’t starve if you died. It was dignity, in policy form.
Life Cover Goes Mainstream
As the 20th century rolled in, life insurance started looking a bit more like what we recognise today. With-profits endowments, critical illness riders, pensions... the industry got bigger and more layered. By the 1950s, it wasn’t just about dying it was about saving, retiring, and planning ahead.
But it wasn’t all smooth sailing. Mis-selling scandals in the 80s and 90s (hello, dodgy endowments and personal pensions) knocked public trust hard. Regulators stepped in, and insurers had to clean up their act. The old-school mutuals either demutualised, got acquired, or vanished. The ones that stuck around like Legal & General, Aviva, and Royal London adapted fast.
At the same time, life insurers became massive investors. Like, trillions-under-management levels of massive. If you have a pension, chances are a life company has its hands on it.
Life Insurance in 2025: Still Kicking, Still Misunderstood
So where does life insurance sit today?
It’s still here. Still essential. But still a bit misunderstood.
Roughly half of UK adults don’t have life cover. Among under-35s, it’s even lower. And yet, every survey says the same thing people know they need it. They just don’t get around to it.
Blame optimism bias, or the fact that death doesn’t really fit the aesthetic of your For You Page. But also: buying life insurance hasn’t always been easy. It's long winded, full of paperwork, and people worry it’s expensive (even though term life can cost less than a Spotify subscription).
COVID reminded people how fragile life is. Life cover sales spiked briefly. But now, cost-of-living pressures have pulled the focus elsewhere. In 2022, new life policy sales dropped by almost 8%. Not because people don’t value it—just because other bills scream louder.
And yet, there’s a quiet evolution happening. Digital-first brands. Instant quotes. Reward-based policies for healthy habits. Policies for renters, freelancers, dog mums. The space is starting to shift.
Globally Speaking: We Were First, But We’re Not Alone
Quick detour across the pond. In New York, giants like New York Life and Equitable Life of the US blew up in the late 1800s, inspired by British models. Their sales tactics were bolder. Their scandals were bigger. But they helped spread life insurance globally.
Meanwhile in Europe, countries like Germany, Italy and France developed their own life giants Allianz, Generali, AXA often blending savings and protection into popular long-term contracts. In France, life insurance is basically a tax-efficient way to save, not just something for “if you die”.
The UK? Still one of the top life markets worldwide. We punch above our weight. But we’ve got some catching up to do when it comes to digital distribution and closing the protection gap.
So, Is Life Insurance Still Relevant?
Absolutely. But it’s overdue a rebrand.
In a world where TikTokers talk about budgeting and burnout, life insurance needs to show up not just as a safety net—but as a lifestyle tool. Protection that fits flexi work, modern families, and digital lives.
People don’t need another lecture. They need a product that fits into their narrative—not just the one insurers have always told.
Life insurance isn’t about doom. It’s about making sure your story continues, even if you’re not around to tell it.
And that’s powerful.
Written By Luke 🤟
Contributor at RiskWire – The Pulse of UK Insurance.
