Protection market update for October 2018
MACRO NEWS AND DRIVERS
Advisers told to prepare for shift in 'worker cultures' – Employers and advisers have been urged to accommodate evolving societal trends by an employee benefits provider, which predicted the emergence of four separate worker "cultures."
REGULATION AND LEGISLATION
Three out of five advisers ready for IDD deadline – UnderwriteMe - Survey reveals finds 40% of brokers unprepared for Insurance Distribution Directive (IDD) deadline on 1st October. Online policy comparison service UnderwriteMe quizzed 101 protection advisers and mortgage brokers and found that 60% of them are ready for the IDD deadline today (1 October).
How protection payments affect benefits – Clarification from the Department for Work and Pensions (DWP) that it will exclude mortgage-related protection payouts in state benefit assessments is great news for the insurance industry. But while this should lead to an increased take-up of income protection (IP), insurers will need to ensure product design meets the DWP’s conditions.
PRODUCT DEVELOPMENTS AND INNOVATION
AIG Life adapts term assurance for IHT planning - The addition of a new joint life second death (JLSD) option provides an alternative to whole of life insurance for couples who want to gift assets and erode their IHT liability by a certain age.
Maternity app for business customers launched by Bupa Global - International private medical insurance (IPMI) provider Bupa Global has made an app designed to support working pregnant women throughout their pregnancy available to those covered by business policies.
F&TRC rolls out age-banded CI analysis for advisers - Finance and Technology Research Centre (F&TRC) has added functionality into its Quality Analyser system which enables advisers to compare critical illness (CI) policies based on an individual's personal circumstances - such as age, gender and term of the plan.
Return of investment calculator for EAPs launched - Algorithm assessing productivity, absenteeism and number of staff available for advisers and providers to use. The Employee Assistance Professionals Association (EAPA) has funded the development of an open-access calculator which provides return of investment (ROI) figures for employee assistance programmes (EAPs)
Amazon to go head-to-head with advisers - Amazon, the online retail giant, could soon become the world's biggest distributor of insurance products, putting it in direct competition with brokers and advisers.
Insurer plans to expand into income protection market – Inchora is set to expand its range of insurance products over the next 12 months, with new income protection products and more help for the rental sector.
LV= adds ‘parent and child cover’ to IP policy - LV= has added parent and child cover to its income protection (IP) policy, providing a lump sum if a parent needs to care for a child because they are diagnosed with a specific illness or has an operation or medical procedure.
Cirencester follows Vitality's rewards lead – Cirencester Friendly has launched a member rewards scheme across its income protection range, in a bid to offer customers benefits throughout their membership and not just at the point of claim.
Zurich unveils revitalised and compelling upgrade - The protection market has seen dramatic changes over the last year with a plethora of insurers bringing to market product changes. While most of these upgrades have focused on a particular product – usually critical illness – Zurich’s latest update was quite different as it delivered a massive overhaul of all product types coupled with a new and more flexible platform.
Sandwich generation’s finances spread too thinly - The UK’s ‘sandwich generation’, those people looking after both children and elderly parents, are increasingly concerned about their overstretched finances.
Trust in protection providers low, research finds - A majority of people underestimate how many protection claims are paid in the UK, underscoring the low confidence in the sector. New Aegon research shows 92 per cent of people believe the UK protection industry pays out less than 90 per cent of protection claims each year.
One in eight would need to sell home if left without income - Zurich - According to research by Zurich, more than half of UK adults (53%) have had to take unplanned leave from work through injury, sickness or unemployment, yet do not have financial backing in case it happens again.
Nine in 10 went to work while ill last year - Research by Canada Life has found that as many as 28 million employees may be coming into work while ill in the UK, with 88% of those questioned admitting they go into the office when suffering from a minor illness.
Steven Dean: Helping business clients meet legal requirements - How group income protection policies can offer legal support to business owners. The world of business is never short of new rules for company owners to keep track of - employment law, regulations, health and safety - the list can feel endless.