Protection market news update for April 2016
Macro news and drivers
'Strong' Q4 protection sales driven by critical
Strong sales of pure critical illness policies helped boost
protection sales figures in the final quarter of last year,
according to exclusive analysis from Equifax Touchstone.
Tisa tackles protection issues with consumer
The Tax Incentivised Savings Association has established a
Consumer Protection Policy Council. Operating alongside Tisa's
other policy councils, the forum will focus on protection issues
and collaborate with industry trade bodies and consumer
Regulation and legislation
Insurance premium tax increases to 10%
Chancellor George Osborne has announced that insurance premium tax
(IPT) will increase by 0.5% to a rate of 10%. This is the second
increase to IPT in less than nine months.
Calls for PMI premium cut after budget tax
Insurer WPA has called for a reduction in premiums despite
repeated rises in the insurance premium tax over successive
Product developments and innovation
L&G enhances group IP mental health
Legal & General has made changes to mental health support
available through its group income protection policies. Insured
employees will now be provided with a choice of therapy options,
from face to face or telephone consultations, to secure video
AXA PPP extends virtual GP
Intermediaries can now offer AXA PPP healthcare's virtual private
GP service Doctor@Hand to SME and individual clients. The service
enables patients to have secure video and telephone consultations
with a UK GP at a time and location that suits them.
VitalityHealth enhances e-billing
VitalityHealth has invested in Healthcode's services so
independent practitioners and hospitals will find it quicker to
submit e-bills for patients with a VitalityHealth policy.
LV= Extends business care service
Provider LV= is extending its business care service for protection
policyholders to include advice on tax and VAT issues.
Holloway Friendly provides IP through Synaptic
Holloway Friendly has teamed up with Synaptic Software to provide
its income protection policies through their online portal. The
broker will now be able to search all Holloway Friendly products
and get a quote in real time and then apply for the policy while
they are still with the client.
Three in four employees overestimate value of statutory
Three out of four employees overestimate the value of Statutory
Sick Pay (SSP) according to research from Legal & General. Only
24% of employees surveyed knew that SSP is currently less than £100
Consumers failing to claim on policies
Customer data from LifeSearch has warned that many policyholders
are not claiming on their protection policies despite having a
legitimate reason to claim.
IPT increase should not see flood of
Simon Crewe says the increase to insurance premium tax (IPT)
should be viewed as an opportunity for clients to future-proof
their healthcare benefits.