16 News analysis PruProtect continues innovation drive with launch of diverse protection suite n But advisers stress that proof will be in the pudding
Cover for school and tuition fees is one of seven new products PruProtect has launched in a bid to fill some “huge gaps” in the protection market. The insurer’s protection team is conducting a series
of roadshows to introduce the new range to IFAs. Underpinning the range is an “Accelerator” option which reduces clients’ initial premiums by up to 23% before premiums rise by 3% per year. Those clients engaging with the Vitality programme will be able to offset the 3% rises and maintain their initial monthly payment throughout the term. The four new products for consumers include family
income cover, with both primary and comprehensive options available. Life cover and / or serious illness cover is available and extra features include funeral benefit of up to £2,000 and a “Spend Protector” which guarantees to pay the family’s bills for 12 months after claim, up to the amount of monthly benefit chosen, effectively doubling the payout for the first year. Education cover – which PruProtect claims exists
nowhere else in the market – will cover the costs of school and tuition fees in the event of a parent’s death. Both state school and private school options are available and extra features include £1,000 child hospitalisation benefit and children’s serious illness cover worth £5,000. Sarita Manzi of London-based advisory firm Get Private is an immediate fan
of the education product. “This is really relevant considering what is happening with tuition fees,” she
said. “They have hit the nail on the head with that product in particular. It’s not overly expensive and it offers peace of mind. I have done policies before where people have specifically taken out protection to make sure their kids’ school fees are covered. This will be more affordable.” PruProtect is also seeking to grow the market for whole of life cover, which
currently represents less than 2% of the life insurance market. The product, which is up to 40% cheaper than that offered by the leading competitors in the market according to the insurer, includes guaranteed rate and joint life second death options. PruProtect will be paying the same commission levels to advisers as they do for standard term assurance, which is normally more generously remunerated.
IFAs enjoy the view at the launch venue: the top floor of the Millbank Tower in London
MADELEINE DAVIES n School and tuition fee cover among a number of new offerings from sector’s innovators-in-chief
The protection team, led by actuarial and product
director Deepak Jobanputra, also announced that Vitality Plus – which is already available to PruHealth members – will be available to PruProtect customers. For an additional monthly premium customers will be able to access offers including a 50% discount on gym memberships with LA Fitness and Virgin Active. While Manzi said she had been “not so keen” on
Herschel Mayers, chief executive of PruProtect, introduces the new range
recent changes to Vitality, which she says have made it harder for people to attain Platinum status, she welcomed the announcement. “About 90% of my clients engage in Vitality,” she
said. “Perhaps they [should] educate brokers a bit more about how easy it is to participate and review how easy it is to get to Platinum status. The benefits are actually, from personal experience, really good, especially in London where the gyms are really expensive.” Manzi also suggested that more explanation of the
Accelerator option would be required. The new range also offers brokers a business protection plan, including a relevant life option
designed to help employees access life cover in the most tax efficient way.
Rodney Sulkin, a mortgage broker at London-based Rodney Sulkin Financial
Services, welcomed the flexibility offered by the new range but said it was important that the quoting facilities for brokers matched it. “The only problem when you come to this is whether or not it is easy to access
different quotes easily,” he said. “It can be difficult to juggle the benefits online to find an acceptable premium. You have an advancement in the product, but how advanced is the technology to allow you to sell it?” “Feedback from IFA partners is that quote system is comprehensive but
easy to navigate,” said Phil Jeynes, head of account development at PruProtect. “But we have every intention to continue to develop that area as we get more feedback from IFAs using it.” Quotes for the new range are available now. According to latest figures from the Association of British Insurers, PruProtect enjoys a 5.6% share of the UK IFA market. HI
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Mag.indd 2 HealthInsurance
24/03/2011 16:50
www.hi-mag.com April 2011
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