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Protection market review April 2017

Protection market update for April 2017

MACRO NEWS AND DRIVERS

Too few workplaces offer women protection
Nearly half of women in employment in the UK do not have any form of protection in place, according to an Aegon report. The study, entitled Protection Matters, surveyed 2,051 women and found just 10 per cent of working females receive protection automatically through their workplace.
https://www.aegon.co.uk/news/women_can_t_relyontheiremployertoprovidefinancialsafetynet.html

ABI partners with LGBT professional network
The Association of British Insurers (ABI) has strengthened its commitment to diversity by partnering with LGBT Plus professional network Outstanding.
https://www.ftadviser.com/protection/2017/03/24/abi-partners-with-lgbt-professional-network/

Life expectancy worsens as pension age is set to rise
Mortality rates started to increase in 2015, latest figures have shown, with higher than expected levels of deaths among both male and female Britons.
https://www.actuaries.org.uk/news-and-insights/news/cmi-publishes-cmi2016-mortality-projections-model/

https://www.ftadviser.com/pensions/2017/03/24/life-expectancy-worsens-as-pension-age-is-set-to-rise/

iPipeline's SolutionBuilder announces partnership
iPipeline has integrated its SolutionBuilder quote and apply portal with 360 Dotnet's client management system, 360 Lifecycle. Accessing SolutionBuilder via 360 Lifecycle allows advisers to research and compare both single and multi-benefit protection products on one screen.
http://www.ipipeline.com/uk/insurance-software-solutions/news/ipipelines-solutionbuilder-integrates-with-360-dotnets-cms-360-lifecycle

REGULATION AND LEGISLATION

Residence nil-rate band - lack of consumer awareness
Two reports for the government - one by John Cridland, the other an analysis for the Department for Work and Pensions (DWP) - have raised the prospect of millions of people working longer to qualify for a state pension.
https://www.covermagazine.co.uk/cover/news/3007104/government-reviews-recommend-later-retirement-age#

Residence nil-rate band - lack of consumer awareness
The new residence nil-rate band comes into force this week and yet, according to research from Old Mutual Wealth, the great majority of people know nothing about it.
http://www.professionaladviser.com/professional-adviser/feature/3007646/five-things-clients-need-to-know-about-new-residence-nil-rate-band

Brexit confusion threatens UK insurance brokers
The UK currently holds number one position in the European insurance market, with £7.8bn in European revenues - but, according to the British Insurance Brokers' Association (Biba), this has been put at risk by the decision to exit the European Union.
https://www.biba.org.uk/press-releases/biba-new-eu-trade-agreement-article-50-invoked/

PRODUCT DEVELOPMENTS AND INNOVATION

Pulse insurance launches simple life cover for those with HIV
Pulse Insurance has launched Positive Life, a straightforward solution for anyone with HIV who is otherwise healthy. Clients will have a simple proposal form to complete confirming there are no other current health issues to consider and that they meet the basic eligibility requirements. Medicals or doctors' reports are not required.
http://www.professionaladviser.com/professional-adviser/news/3007651/pulse-insurance-launches-simple-life-cover-for-those-with-hiv

Aegon uk reveals 2016 claims statistics
Aegon UK's 2016 claims data has revealed the company paid a total of £123.4m in claims for life (including terminal illness), critical illness and income protection to more than 1,300 families and businesses last year.
http://www.professionaladviser.com/professional-adviser/news/3007330/aegon-uk-reveals-2016-claims-statistics

Cover Me Now to launch instant quote-and-apply system
Synaptic Software is due to launch its instant quote and apply tool, Cover Me Now, at the end of March. It asks 20 simple yes/no medical underwriting questions and, assuming a customer can answer 'no' to all of these, they can get on risk for a single life level or decreasing term assurance product within 15 minutes, with the quote returning in as little as six seconds.
http://www.covermagazine.co.uk/cover/news/3006681/cover-me-now-to-launch-instant-quote-and-apply-system

Vitality life adds to serious illness cover
Vitality Life has made three changes to its serious illness cover product that the firm believes will lead to more claims. Cancer relapse benefit is now included. This new offering is unique in the market and means Vitality will pay out an extra 50 per cent of the sum assured on the recurrence of cancer.
https://www.ftadviser.com/protection/2017/03/22/vitality-life-adds-to-serious-illness-cover/

AIG life and critical illness payouts jump 49%
The firm's life insurance arm paid out 95 per cent of claims last year, totalling £46m - more than double the £19m it paid in 2015.
http://www.covermagazine.co.uk/cover/news/3007416/aig-life-increases-payouts-for-life-and-critical-illness-claims

The Exeter adds range of London hospitals
Private medical insurer The Exeter has added a range of prestigious hospitals in central London to the hospital list for its Health Cover for Me and Health Choices for Me plans.
https://www.covermagazine.co.uk/cover/news/3007343/the-exeter-adds-range-of-london-hospitals

CONSUMER TRENDS

Half the value of your home at risk from average care home stay
New analysis by Royal London shows that the typical person entering residential care will face total bills of between £50,000 and £93,000 depending on where they live. Variations in house prices around the UK mean that this could amount to anything from 18% to 56% of the value of the average house.
https://www.royallondon.com/about/media/news/2017/march/half-the-value-of-your-home-at-risk-from-average-care-home-stay/

Mothers have inadequate savings and income protection
Mothers might expect to do well on the card and flower front this Mother's Day but research undertaken by Aegon suggests when it comes to savings, income protection and relying on their partner's income, they fare poorly.
http://www.actuarialpost.co.uk/article/a-working-mothers-day-is-full-enough-but-needs-protecting-10831.htm

More people insure their phone than get CI cover
Aviva has said advisers need to help address parents' lack of financial preparedness for a health crisis. The company's latest report revealed nearly half (45 per cent) of families could not support their lifestyle for a month if the main breadwinner was unable to work.
https://www.healthinsurancedaily.com/health-insurance/product-area/life-critical-illness/article482265.ece

EXPERTS CORNER

Providers need to pay out to boost interest in protection
The claim is our core product in protection; not the policy. In a digitally enabled world, where all power is flowing rightly to the consumer, we should be making the sharp end of what we do - the end that matters most - utterly brilliant.
https://www.moneymarketing.co.uk/issues/23-march-2017/providers-need-pay-boost-interest-protection/

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