Protection market update for June 2017
MACRO NEWS AND DRIVERS
Life assurance terms for HIV-positive people
Research by financial advisers Unusual Risks reveals the average
length of policies taken out by HIV-positive people in the UK
between 2014 and 2017 was 19 years - up from ten years between 2009
Advisers see pre-tax profits fall - APFA
The advice sector's pre-tax profit fell by more than £50m in 2016,
according to the latest annual market report from the Association
of Professional Financial Advisers (APFA). Retained profit more
than doubled from £61m to £127m in the advice sector between 2015
and 2016, despite pre-tax profit dropping from £835m to £779m over
the same timeframe. APFA warned margins in the sector "remained
REGULATION AND LEGISLATION
ABI calls for independent pension
The government should bring in an independent retirement
commissioner, the director of policy, long-term savings and
protection at the Association of British Insurers has said.
Labour's medical insurance tax grab under
Labour's manifesto proposal to fund free parking in NHS England by
increasing the tax on private medical insurance premiums has met
PRODUCT DEVELOPMENTS AND INNOVATION
IRESS updates whole of life service on the
IRESS has updated its Whole of Life service on its online
comparison quote and transaction portal The Exchange. IRESS said
the Whole of Life user experience has been "completely refreshed"
and aligned with the other protection products advisers are already
AEGON JOINS IRESS' THE EXCHANGE
Aegon is the latest provider to offer partially underwritten
quotes through The Exchange, IRESS' online comparison quote and
transaction portal. IRESS has extended its underwriting service to
include all protection products on The Exchange.
Canada Life launches protection products through IRESS'
Two new protection products from Canada Life are to be made
available to intermediaries through IRESS' The Exchange. The new
term and decreasing-term protection products will be available in
addition to Canada Life's existing whole of life product.
L&G improves solvency position
Legal & General reported it had improved its Solvency II
position, with a surplus of £7bn and a coverage ration of 188 per
cent. This risk margin is designed to allow a theoretical
institution to take on the risks of the company after a one-in-200
year event occurs.
Standard Life reveals plan for EU hub after
The insurer and asset manager, which is headquartered in
Edinburgh, has chosen Dublin as the base for its European Union
subsidiary, according to the company's chairman Sir Gerry
Royal London makes funeral payment pledge
Royal London is latest firm to sign up to the Protection
Distributors Group's funeral payment pledge. The Protection
Distributors Group (PDG) has been campaigning for insurers to do
more to help bereaved families.
Mortgage debt exceeds the average life insurance pay
People are likely to be under-protected for the amount of mortgage
debt they have, an analysis by Aegon of both the ABI's and its own
latest protection claims statistics has suggested.
Mental health drives rise in employee protection
Group income protection benefits have helped rising numbers of
employees with support for mental health concerns, data from Canada
Life has found. According to quarter one data from Canada Life's
group income protection customers, there was a 12.9 per cent
increase in calls put into the employee assistance programme (EAP)
in 2017, compared with the first quarter of 2016.
Elderly people needing care to increase 25% by
The study, published by the Lancet Public Health medical journal,
said cases of disability related to dementia will rise by 40% among
people aged 65 to 84, with other forms of disability increasing by
Re-setting consumer expectations on
The life insurance industry finds itself in an unusual position.
Despite the numerous reputational issues faced by the banking
sector in recent years, more people still have a higher degree of
trust in banks (22%) than they do in insurers (19%). Consumer
scepticism seems to stem principally from the perceptions people
have around policy pay-outs.