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Protection market review - March 2018


Protection market update, including; news, regulation & legislation, product development & innovation, consumer trends and experts corner.


Insurers most mistrusted in financial services - Only one in four consumers say they trust insurers, making them the least trusted organisations across the financial services sector, new research has revealed.

Could mortgage advice reform boost protection? - A wider discussion around the risks of mortgage debt should increase protection sales. There is no regulatory requirement for mortgage brokers and advisers to discuss protection or go through the wider risks clients face when taking on mortgage debt.

Ten million brits ‘will live to 100’ - Ten million Britons alive today can expect to reach 100, government figures reveal. At present, there are just 15,000 centenarians. The government is launching a £300m fund to research old age in order to support the ageing population.


Almost 60% of over 55s want to gift more than annual gifting allowance - Of 17.2m over-55s in the UK, almost 60% want to gift more than the £3000 tax-free allowance to their loved ones after they pass away, a survey of 500 over-55s by Old Mutual Wealth has suggested. While 71% want to pass on their wealth during their lifetime or both during their lifetime and after, the research found.


Penrith Building Society and PG Mutual launch ‘Income Protection Plus’ - Penrith Building Society has partnered with income protection specialist PG Mutual to launch ‘Income Protection Plus', a plan to provide financial support to those who cannot work due to illness, accident or injury.

Aviva axes critical illness cover from disputed protection product - Aviva has removed critical illness cover from its relevant life insurance product, which was criticised by competitors for not being compliant with tax rules.

Intrinsic launches critical illness comparison tool - Intrinsic has launched a critical illness comparison tool with independent software provider Defaqto. The tool allows advisers to compare new and historic individual and business cover policies.

Aviva to offer mental health services for corporate PMI clients - Aviva's large corporate PMI clients are being offered access to a specialised mental health service which gives an assessment within 48 hours. The plan, which is available to all holders of Aviva's private health insurance product Optimum, includes links with a range of specialists such as psychotherapists, psychologists, counsellors and psychiatrists.

Unum EAP counselling ‘improves mental health for 92% of users’ - Nine in 10 (92%) people who used the counselling support provided by Unum’s employee assistance programme (EAP) last year saw an improvement in their condition, according to figures released by the employee benefits provider.

The Exeter paid 91% of income protection claims in 2017 - Healthcare and protection insurance specialist, The Exeter, paid out on 91% of all income protection claims received last year, its IP claims statistics for 2017 showed. Musculoskeletal problems, fractured/broken bones and back conditions accounted for the majority (58%) of all claims.

AIG Life paid 99% of life claims in 2017 - AIG Life has revealed it paid 99% of life claims (up from 96% in 2016) and 93% of CIC claims (up from 92.3% in 2016), with the highest pay-outs sitting at over £5m for life, £765,000 for CIC and £459,000 for terminal illness. The average age at claim was 64 years for life, 59 years for critical illness cover (CIC), 3.5 years for children's CIC, while cancer claims accounted 45% for life, 60% for CIC claims, 96% for terminal illness and 27% of children's critical illness claims.


HIV life terms up as policies stabililse - Figures from Unusual Risks, the medical financial advisers, showed HIV positive men and women were taking out life insurance in the UK and insuring themselves for an average of £125,933. The average term for policies taken between 2009 and 2013 was only 10 years but it is now possible to get a term of between 15 and 25 years.

Poor company management damaging worker performance - Almost of half (45%) of employees say that their employer does not improve their productivity and almost a fifth (16%) feel that poor management is having a negative impact on the quality of their work, research by Canada Life Group Insurance has suggested.

Millennials ‘twice as likely as parents to suffer from stress’ - Millennials are almost twice as likely to suffer from stress as baby boomers, research suggests. The survey of 2,824 employees at medium and large private sector companies from Willis Towers Watson found 61% of millennials suffer high or above average stress, compared with 33% of baby boomers and 50% of generation X. The research also found 34% of millennials said they have suffered from severe stress, anxiety or depression in the last two years.

Households ‘could lose £25,000 a year if the woman falls ill or dies’ - If women at the height of their financial and family responsibilities (aged 25 to 45) fall seriously ill or die, their household could lose up to £25,000 per year in lost income and other contributions, research shows.


Paul Yates: Protection’s paradigm shift - For the first time - arguably in a long time - there's a tangible buzz in the protection industry. It is driven, in part, by the growing realisation that insurance technology can be used for a lot more...

Tom Baigrie: Consumer ‘experts’ must report more responsibly - The UK protection industry is unfairly defined by occasional failures, when the focus must be on the thousands it has helped.


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