Protection market update for September 2017
MACRO NEWS AND DRIVERS
87% agree that the claim is the 'core product, not the policy'
Some 87% of protection industry experts surveyed agreed that the 'claim is our core product, not the policy', according to a poll from the Protection Review. The remainder of those polled disagreed (8%) or said they were undecided (5%).
Artificial intelligence can boost uk claims process
Nathan Root, vice-president of insights and data for the insurance division at Capgemini Financial Services, said better use of artificial intelligence during the claims process at US insurers has cut down processing time and provided a more tailored service.
REGULATION AND LEGISLATION
Intermediaries criticise early details of ABI CI statement of best practice
Industry figures have said that the Association of British Insurers (ABI) Statement of Best Practice for Critical lllness Cover consultation has not yet involved intermediaries in a meaningful way as media reports have indicated that proposals currently involve a reassessment of stage one critical illness claim payments.
Royal London to set up subsidiary in Ireland to quell Brexit uncertainty
Insurance mutual Royal London has made plans to change its existing life business in the Republic of Ireland to a full subsidiary in order to mitigate Brexit uncertainty and guarantee continued access to its products.
PRODUCT DEVELOPMENTS AND INNOVATION
Aviva advances life cover payments for funeral costs to £11k
The advance payment can be used towards the cost of the funeral as well as the probate application fee. This could help to speed up the Grant of Probate application, allowing the full claims amount to be paid quicker.
Zurich launches travel safety app for group risk customers
Red24's TravelKit allows users to input their travel itineraries and then view flight and travel updates in real time. Users can also access a 24/7 emergency hotline and the latest news and security information for the countries they are travelling in.
Rivals refuse to follow aviva on group protection gap
Providers have refused to follow Aviva's lead in committing to immediately cover the potential gap in group income protection provision caused by the raising of the state pension age.
AIG offers family income benefit to expats
AIG has added family income benefit (FIB) to its product range for British expats requiring protection insurance for their UK financial liabilities.
UK adults reveal impact of ill health on finances
Almost a third (31%) of UK adults have experienced temporary or permanent leave from work due to ill health, a cancer diagnosis or a death within the family, according to a study by Aviva.
Fixed fees 'nine times more attractive' than percentage-based adviser charging
Consumers prefer fixed fees to percentage based charging, despite advisers' preference for the latter, research by Drewberry has found. Half of respondents to a survey by the firm said they would prefer fixed prices for 'standard' pieces of work.
The £2bn cost of bad employee communication
Employee benefits such as healthcare and pension entitlements are not being communicated effectively to staff, research from Unum has claimed. In a 30-page report, Workplace Communication Blueprint, the group healthcare provider revealed significant numbers of Britons in the workplace are unaware of any benefits offered to them.
The development of CI cover
As part of COVER's 20th Anniversary series, Fiona Murphy talks to Scottish Widows' Johnny Timpson about the critical illness market.