Protection market review October 2017 part 2
MACRO NEWS AND DRIVERS
Industry split on whether UK protection policies should adopt non-contestability period
Insurance experts are split on whether the UK insurance industry should adopt a compulsory non-contestability period on policies, according to poll from the Protection Review.
Employers urged to do more to support sick workers
Employers have been urged to improve their support for sick workers after a survey revealed almost a quarter (23 per cent) of employees would only take time off work if they were hospitalised.
REGULATION AND LEGISLATION
Dilnot restates call for cap to fix 'broken' care market
Sir Andrew Dilnot reiterated calls for a cap on care costs in order to remove the "catastrophic risk facing us all" and to help stimulate the market. Speaking at the inaugural Royal London annual lecture on Thursday, Dilnot (pictured) said "catastrophic" care costs were the "last big unpooled risk" that citizens face.
PRODUCT DEVELOPMENTS AND INNOVATION
Aviva latest to offer income protection for self-employed
The insurer’s Living Costs Protection product provides a monthly fixed benefit of between £500 and £1,500 to cover outgoings such as a mortgage, rent or bills if an individual cannot work due to illness or injury.
Zurich receives exclusive group life distribution rights to lloyds banking group’s clients
Lloyds Banking Group (LBG) and Zurich have signed a deal under which LBG will acquire Zurich's UK workplace pensions and savings business with assets under administration of more than £15 billion and circa 500,000 customers.
Generali UK teams up with mental health at work
The insurer said it has done so in recognition of the fact that widespread stigma surrounding mental health is preventing many people from getting the support they need.
AIG Life joins IRESS’s enhanced quote service
AIG Life is adopting IRESS's enhanced quote service, which allows partial underwriting by asking optional questions on height, weight and waist size as part of the process.
Royal London makes tpd optional on critical illness over
Customers who choose not to take the TPD option will receive a premium discount.
Cirencester friendly re-launches ‘income assured enhanced’
Now known as Income Assured Enhanced, it still has features such as Day One Cover and no loadings for occupation, smoking and hazardous pursuits.
Scottish Widows joins IRESS underwriting service
Scottish Widows Protect has joined Iress’ online comparison quote and transaction portal The Exchange. The system returns a partially underwritten quote that takes body mass index (BMI) into account, enabling advisers to provide their clients with a more accurate quote at outset for term, whole of life, income protection, critical illness, multi-policy and multi-benefit products.
Less than one in 10 seek protection advice
Only 7 per cent of people in the UK who support someone financially have spoken with an adviser about long-term financial protection, according to research.
Workplace protection must focus more on mental health
Workplace protection plans must support employees' mental health as being employed gives people with these issues a sense of wellbeing, routine and identity, research has found.
Denise Wond: Life! It’s a risky business
“I understand that when the world is rosy it’s difficult to have the protection conversation but if your clients really understood the risks they face they’d probably be far more willing to listen.”