Protection market update for July 2018 including news, updates on regulation and legislation and product development.
MACRO NEWS AND DRIVERS
Buried costs: Regulation of prepaid funeral plan providers – Inflation-busting increases in the cost of funerals are leading more people to explore ways to cover these future expenses. Although not normally a mainstream area of financial advice, proposals to regulate funeral plans, coupled with the variety of planning options available, mean there are chances for advisers to get involved.
Average death-in-service benefit ‘leaves £68,000 gap’ - People receiving a death-in-service benefit from a loved one’s employer would receive an average payout of between £27,600 and £55,200, leaving them with a mortgage shortfall of £67,678, an analysis shows.
REGULATION AND LEGISLATION
MPs call for social care tax for over-40s – MPs from two Parliamentary committees are calling for the government to introduce a new tax for people over 40 to fund social care.
'Outdated' Insurable Interest Bill redrafted for life – The joint Law Commission (Scotland and England & Wales) has today published an updated draft of the Insurable Interest Bill, which includes broader considerations for life insurance, as well as accident and health cover.
PRODUCT DEVELOPMENTS AND INNOVATION
Legal & General launches GIP benefits hub - Legal & General has launched a benefits hub providing information on group income protection (GIP) features.
Royal London rolls out diabetes life cover - Royal London has announced its diabetes life cover policy is now available from advisers across the UK. The full market launch follows positive feedback from advisers who helped shape the product during a pilot, the insurer said.
AXA partners with health startup - Global insurance company AXA has partnered with London, UK-based startup Spoon Guru to introduce the startup’s healthy eating diet and nutrition app to the corporate wellness market.
L&G improves intermediary income protection proposition - Product now offers additional flexibility in the event of a claim for NHS doctors, nurses and surgeons
Canada Life adopts iPipeline’s Digital Platform - IPipeline has revealed that that Canada Life has selected its Digital Platform to distribute individual protection products.
Three quarters of UK residents believe PMI is too expensive – ActiveQuote - British people put the average estimated price of a private medical insurance (PMI) policy for a family of four at £78.10 - almost double the amount of the real cost of £40 a month - a survey by activequote.com has found.
Absenteeism levels three times higher at large firms – GriD - Firms with more than 250 employees have the highest absence rates - averaging 7.5 days per year - compared with micro businesses (one to nine staff), which average 2.8 days per year, research from GRiD suggests.
Two-in-five UK employees happy to work into old age - Canada Life – Over a third (36%) of UK employees want to work beyond 65 - a figure that has more than doubled in three years (from 17%) - research from Canada Life has revealed.
Nicki Plews: Getting comfortable with critical illness is simple - Customers don't care about medical definitions, they just want to know they are covered.