Why demand for unemployment insurance is soaring
Kesh Thukaram, co-founder, Best Insurance, discusses rising demand for unemployment insurance amid economic uncertainty, as well as the outlook for 2026 and beyond, and opportunities for advisers.
Consumer anxiety around job security is rising. More people across the UK are becoming increasingly worried about potential layoffs and corporate restructuring, while others are continuing to struggle in their search to find a new job.
As a result, demand for unemployment cover has seen a significant surge. Data from Best Insurance shows that enquiries for unemployment cover more than doubled in 2025, rising by 105.5% between Q1 and Q4.
Economic uncertainty
The figures reflect a year marked by stagnant growth, economic uncertainty and evolving government policy, and culminated in the UK unemployment rate hitting a five-year high of 5.2% at the end of 2025, according to figures from the Office for National Statistics (ONS).
Young people aged between 16-to-24-years-old have been hit the hardest, the data shows, with unemployment among this demographic rising to 16.1% – its highest in more than 10 years.
Meanwhile, the retail and wholesale sector saw the biggest fall in workers over the course of the year, with 65,000 jobs lost in the sector since January 2025.
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