Protection market review December 2017
1. MACRO NEWS AND DRIVERS
Record-breaking month for protection new business - IRESS
Financial technology business IRESS saw a record-breaking month for protection new business in November, with 59,000 applications filled out compared with 49,000 12 months ago.
The government has called on the protection industry to improve product design in order to boost take-up of group income protection (GIP). In the Improving Lives: The Future of Work, Health and Disability report, published on Thursday (30 November), it urged providers to develop GIP insurance products that better meet the needs of smaller businesses.
2. REGULATION AND LEGISLATION
How can you meet mifid ii recording requirements?
Firms that fail to put processes in place to meet the requirements of MiFID II now will undoubtedly feel the strain - both financially and operationally - in the near future, warns Matt Riordan.
3. PRODUCT DEVELOPMENTS AND INNOVATION
AIG life launches instant life offering
AIG Life has launched Instant Life, a level term insurance plan with an application time of less than 8 minutes. The online journey can be completed by the adviser or by the customer on a desktop or any mobile device giving an immediate decision without the need for medical evidence.
Zurich launches 'selfie' app to encourage life insurance take-up
FaceQuote guestimates a user's age before calculating how much life cover would cost per month based on the age suggested. Zurich said that the app has been launched to encourage people to engage with life insurance and show how affordable life cover can be.
L&G updates critical illness policy with redarc service
The services provided by RedArc include serious illness, disability or bereavement support, Second Medical Opinion, mental health support, carer support, Help at Home and Eldercare, providing customers with support tailored to their circumstances.
LV= hosts 'income roulette' webinars for advisers
LV= is hosting a series of webinars for advisers looking at the financial resilience of specific customer groups, and how advisers can help them.
'Brand failure' blamed for closure of holloway friendly subsidiary
Holloway Friendly has taken the decision to close its Optimal Protection group risk brand to new business with immediate effect. Holloway Friendly CEO Stuart Tragheim said the closure was a result of the brand's failure to achieve "sufficient scale despite the launch and promotion of new products in recent years".
Old mutual wealth streamlines underwriting process for advisers
Old Mutual Wealth's (OMW) protection business has increased its financial limits and produced a new shorter questionnaire to speed up its underwriting process for advisers. As part of the update, OMW has improved clarity on what high net worth clients require for underwriting in order to help advisers better manage their clients' expectations ahead of an application.
4. CONSUMER TRENDS
Millennials most affected by mental health problems
Young people aged 16 to 24 are more affected than other age groups by mental health problems such as anxiety and depression, yet are least likely to seek support, according to research from Aviva.
Bosses ignorant of employee benefits cost
Two-fifths of HR bosses are unaware of the amount their firm spends on employee benefits, according to research from Willis Towers Watson. The firm’s 2017 Employee Benefits survey found rising cost is the biggest barrier UK businesses face when delivering employee benefits programmes, with 50 per cent of HR decision-makers seeing it as a key challenge over the next three years.
5. EXPERTS CORNER
Vicky Churcher: it's time to kiss complexity goodbye
Has the protection sector now reached the stage where complexity is becoming one of the biggest threats to growth? Vicky Churcher urges product providers and advisers to 'keep it simple and straightforward'.