News Review: Protection
G-day – How was it for you? by Kevin Carr,
chief executive of Protection Review
and MD of Kevin Carr Consulting
Most people I’ve spoken to
in recent weeks say they defi- nitely saw an increase in pro- tection business in the run up to G-day. I’m told by a number of in-
termediary firms that trying to get all the business through in time was ‘crazy’ and that a huge sigh of relief came when the day finally arrived to- wards the end of last month. While some underwriters
and servicing teams worked extremely hard to get as many clients covered as possible, with some working until mid- night on the 20th to make it all happen, many of the con- cerns expressed by advisers earlier in the year were per- haps more valid than some first thought. When will insurers realise
that a cacophony of different rules and approaches is oſten counterproductive? For every adviser I’ve spoken to who made a real effort to get the most out of G-day, there’s an-
other who said insurers made the whole thing too compli- cated, trying to be different and ‘out do’ each other. So many advisers carried on as usual.
“When will insurers realise that a cacophony of different rules is often counter- productive?”
A recent consumer analysis
by BDRC Continental on the EU Gender Directive impact showed a perceived lack of in- formation from insurers and a belief that the legislation will be used as an excuse to charge higher premiums; only 3% of consumers recalled com- munication on the topic from their insurers. More than half said the industry had done “a poor job” of explaining which products were likely to be af- fected yet 60% were keen to know more about the EU Gender Directive and what it means for them. Te gender ruling wasn’t the industry’s idea of course;
Aviva has begun airing its latest national TV ad campaign which focuses on the key life stages when consumers can benefit from protection and retirement planning.
The 60 second “Cradle Talk” adverts
were first broadcast on Boxing Day and will continue to run throughout the year. Featuring Paul Whitehouse, who has appeared in a number of the firm’s ads, the campaign follows Whitehouse’s character from the birth of his first child to that of his
16 MORTGAGE INTRODUCER JANUARY 2013
it was forced upon providers despite the arguably sound evidence which supported the differences between men and women from an insur- ance perspective. On average women live longer than men, typically considered to be re- lated to factors such as chro- mosomes, prostate, lifestyle and so on, so shouldn’t their life insurance be cheaper? Premiums have of course
increased as predicted. In the short term, there are many customers still being under- written who will have to de- cide whether to accept the gender neutral premiums offered. Intermediaries still have much work to do, ensur- ing they get the best deal for their clients which could in- volve switching cover. New business volumes are
expected to fall by 20-40% as churning business will now be much harder to do – you can’t really switch policies on price when rates are going up. But this is very probably a good thing. Persistency rates will improve and advice around the quality and suitability of cover should take precedent over which firm is merely the cheapest.
Aviva continues protection related TV advertising
first grandchild, and begins by highlighting Aviva’s life cover product offering £10,000 of free life cover to new parents up to their child’s first birthday.
Along with Unum and few others, Aviva
were widely praised last year for their effort in promoting the need for protection to the public and this campaign should only enhance this view.
For advisers, it is another great way to help introduce the subject of protection into conversations.
News in brief
• IFA firm Plan Money is launching a non-advised proposition, Plan Direct, which will refer clients to comparison website
PayingTooMuch.com for protection products • PruProtect has appointed Kevin Watkins as Head of Wealth Protection to drive its post-RDR protection business
• Sesame Bankhall Group is launching a general insurance portal which will be rolled out to Sesame, PMS and Bankhall members • Insurers paid out 83% of income protection claims in 2011, according to new figures from the Association of British Insurers • An online petition calling for Friends Life to pay a life and critical illness policy for a father who died of cancer has amassed over 40,000 signatures • Exeter Family Friendly has announced an influx of new advisers into the protection arena post RDR • Think-tank Demos has called on bosses to offer employees income protection schemes to boost morale and productivity
• PruHealth is substantially increasing the level of rewards it offers to members of its Vitality wellness programme • New research from Zurich shows that the majority of UK adults are unaware of the limited financial support available to them if they become unable to work through illness or disability
www.mortgageintroducer.com
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