Protection market update for December 2016, Part
Macro news and
£10m a day paid out on protection
UK insurers paid out the equivalent of £131 million to customers
every day under general insurance, long-term savings and pension
policies according to the definitive industry statistics published
by the Association of British Insurers (ABI).
Benefit strategy rethink needed following Autumn Statement
Almost three-quarters (71%) of delegates polled at Aon Employee
Benefits' recent salary sacrifice seminar felt they would have to
rethink benefit strategy as a result of the changes to salary
sacrifice announced in the Autumn Statement.
IFAS call on insurers to provide annual
Consumers should receive annual statements reminding them of their
insurance cover, similar to those received for pensions and
investments, according to the Protection Distributors Group.
Lib Dem leader challenges IPT rise
Liberal Democrat leader Tim Farron has urged the government to
reconsider rising insurance premium tax (IPT) to 12%. Farron, who
is also the MP for Westmorland and Lonsdale, submitted an Early Day
Motion for MPs to debate this matter in parliament.
FCA finalises guidance for fair-treatment of closed-book
In Finalised guidance 16/8: Fair treatment of long-standing
customers in the life insurance sector, the FCA wanted to ensure
that customers with life insurance products, such as whole of life
policies that are closed to new business, do not receive less
attention than customers who have recently taken out a new
EU disclosure rules will hit insurance
European requirements on insurance brokers to disclose
remuneration fully to clients could put additional pressure on
advisers, experts have warned.
Product developments and
Royal London launches digital trust
Royal London has launched an online trust service in the latest
enhancement to its protection proposition. The online trust service
hosts a range of the most popular trust forms that advisers would
require when placing a life policy in trust, including a Relevant
Life Trust and a Business Trust. The insurer is also planning to
add more trust forms in the future.
LifeQuote: communication gap
LifeQuote will support advisers whose clients do not have an email
address as an increasing number of life insurers insist on email
addresses on the application. Of the 11 insurers surveyed, six
require customers to have an email address in order to set up an
account. As life insurers update their online systems this
number is expected to rise.
Zurich to introduce e-signatures and electronic GP
Zurich is rolling out e-signature approval for the AMRA (Access to
medical records act) declaration and will soon be starting a pilot
of electronic GP reports on individual protection policies.
Legal & General partners with digital healthcare
Legal & General has partnered with digital healthcare service
Doctor Care Anywhere to offer virtual access to general
practitioners. The insurer is piloting this service with its
existing group income protection customers, giving insured
employees access to video and phone consultations with general
practitioners through their computer, tablet or smartphone.
The Exeter launches protection platform using TCP's 'SS/G
Implemented in under 10 months, 'SS/G Digital' deploys new
Customer and Adviser portals allowing The Exeter's customers and
their advisers to place, track and alter their cover with The
Scottish Widows to use electronic
Scottish Widows has introduced electronic General Practitioner
(GP) reports into its protection policy underwriting process. The
aim is to make it simpler and quicker to obtain customers' medical
information from their GP practice.
Canada Life chooses AXA PPP
Canada Life Group Insurance has chosen AXA PPP healthcare to
provide employee support services to its 2.7m insured employees in
23,500 employer-funded schemes.
More than 13 million UK women lack a financial safety
For nearly three in ten (28%) women in the UK, the inability to
support themselves or their families financially is their greatest
financial fear, according to research. The report from Aegon found
that nearly half (46%) of 2,000 women polled believe it's solely
their responsibility to make sure that their family has enough
income should the unexpected happen.
1 in 7 are absent from work for four weeks or
Some 1 in 7 employees had been absent for four weeks or more in
the previous 12 months, according to research from Ellipse. This
suggests that four week long absences are more common than the 1 in
18 risk reported by UK government earlier this month. Ellipse had
surveyed 1,005 UK SME employees.
Two thirds of stay at home mums don't have life
The financial risk to a family of the death of a stay-at-home
mother has been put at £29,812 a year by SunLife. The insurer has
highlighted that only one third of stay at home mothers are covered
by such insurance.
Protection market needs to adapt to fit retirement
Paul Roberts discusses what changing retirement trends will mean
for the protection market.