Life & Health InsuranceMARKET INSIGHT REPORT 2015 Q1

April 2015




MSM Confused Go Compare CTM Family Insurance Services
Lowest price £24.50 Realm £26.40 helpucover £26.40 helpucover £24.50 Realm £18.93 National
2nd Lowest price £24.56 FirstCall
£30.00 Realm £30.00 Realm £26.00 Assurity £24.50 Realm
3rd Lowest price £26.40 helpucover £30.80 Home Owner £30.80  Home Owner £26.40 helpucover £26.00 Assurity
Number of insurers 9 8 8 12 12

Income protection, covering £1,000 per month, for 12 months, for accident, sickness and unemployment with a 30 day excess for an employed 29 year old male, earning 40k per year living in GL52.

MSM Confused Go Compare CTM Family Insurance Services
Basic cover
hospital treatment
N/A £33.90 AXA PPP
£33.90 AXA PPP
£8.81 General Medical £8.81 General Medical
Basic cover
N/A £19.31 Simply
£19.31 Simply
£18.37 Aviva £18.37 Aviva
Mid-range cover N/A £33.18 Bupa £33.18 Bupa £23.51 General Medical £23.51 General Medical
Comprehensive cover N/A £38.47 General & Medical £38.47 General & Medical £33.15 General Medical £33.15 General Medical
Number of insurers 0 11 11 13 13

PMI prices based on 35 year old male, non-smoker living in GL7, with an excess of £250.

MSM Confused Go Compare CTM Family Insurance Services
Lowest price £10.82 Beagle
£11.26 Beagle
£10.87 Beagle
£10.87 Beagle
£11.47 Aviva
2nd lowest price £11.16 LV= £11.79 LV= £11.30 LV= £11.30 LV= £11.55 L&G
3rd lowest price £11.48 L&G £11.95 L&G £11.81 L&G £11.81 L&G £11.79 Zurich
Number of insurers 5 10 9 5 8

Life (Term) prices based on 35 year old male, non-smoker, living in GL7, covering £200,000, over 20 years.

MSM Confused Go Compare CTM Family Insurance Services
Lowest price N/A N/A N/A N/A £10.00 Aegon
2nd lowest price N/A N/A N/A N/A £12.18 Zurich
3rd lowest price N/A N/A N/A N/A £14.13 L&G
Number of insurers 0 0 0 0 8

Life (WOL) prices based on 35 year old male, non-smoker, living in GL7, covering £10,000.

MSM Confused Go Compare CTM Family Insurance Services
Highest cover N/A £5,217 Shepherds Friendly £5,217 Shepherds Friendly £5,502 Shepherds Friendly £5,502 Shepherds Friendly
2nd hightest cover N/A N/A N/A £5,165 AIG £5,440 AIG £5,440 AIG
3rd highest cover N/A N/A N/A £4,726 L&G £5,393 Engage
£5,393 Engage
Number of insurers 0 1 4 6 5

Over50s prices based on 60 year old, non-smoker, male, living in GL7 choosing a premium of £20 per month with a 24 month wait period.


Assured Futures Limited (AFL) is launching a new insurance brand National Assurance next month. This exciting new brand will provide protection insurance products with unique selling points to fill a gap in the market identified by advisers at AFL following conversations with clients.

The protection insurance products will be sold through AFL’s own websites; and the broker brand website for Family Insurance Services as well as through AFL’s aggregator partners.

The products are the result of collaboration between underwriters Alpha and April UK; administrators Trent Services and distributors Assured Futures Limited.


The products themselves focus on areas of protection insurance

The income protection product offer is something new to resolve issues clients were faced with e.g.: expensive short term income protection to cover a mortgage, financial commitments and general lifestyle expenses

Private medical policies include the second opinion service Best Doctors as standard as well as a straight forward pricing structure and easily adapted features to increase suitability to lifestyle or reduce monthly premiums

Over 50s life insurance policies, provided by AIG, also include the Best Doctors second opinion service and can be paid directly to a funeral service provider to make the transaction easier for the beneficiaries.

Example Policy

Client X requires Mortgage Payment Protection and some money to cover bills and living expenses for his wife and family.

Client X Financial Commitments:

Mortgage £800
Utility Bills £100
Council Tax £120
Nursery Costs £150
Car loan £70
Commitments £440
Food £150
Petrol £50
Fun £60
Extra Expenses £260
TOTAL cover required £1,500

Client X Cover Details:

Client: X

Age: 35

Cover: AS&U

Excess: 30 days

Benefit period: 12 months

In this example, this risk would usually have to fall under an income protection plan and not a cheaper mortgage plan because the extra cover risk is greater than the usual limit of mortgage +25%. But National Assurance charges each portion at the different appropriate rates then wraps them into one simple policy.

Good mortgage risks therefore do not get penalised for arranging the right cover.

Equivalent rate from Helpucover: £44.10

Equivalent rate from British Insurance: £66.70

Equivalent rate from IRESS/Exweb: £45.51

Equivalent rate from The Source: £88.60 (Examples correct as at 28 April 2015)



When speaking with customers who are thinking about purchasing a private medical insurance (PMI) policy, one comment is heard time and time again. The ability to see a GP quickly - namely on the same day as symptoms occur. We estimate at least 65% of our clients comment on this and have seen an increase in sales of policies that included access to some sort of GP support service. The level at which a GP can be accessed varies from provider to provider and ranges from a GP phone service to a private GP service via face time type service. For example AXA PPP provides a 24 hour phone service to a range of qualified doctors and experts including GPs.

Our long established relationships with insurers enabled us to address this issue directly with the policy makers and they are now beginning to respond. Aviva were the first to establish a provision of this nature and subsequently provide their customers with access to Babylon. This is an app which provides Aviva customers with “the world’s first integrated digital healthcare service”. That is, an almost instant smartphone face time or skype GP appointment system, which has the ability to issue prescriptions when appropriate or make a referral to a specialist consultant.

How It Works

The Babylon app is a feature of Aviva group PMI schemes and can be added to personal policies too at a small monthly payment – currently £4.99.

It's a simple process with the following features:

Assured Futures’ Richard Kerton, Head Of Health Insurance, gives his view:

  • Several insurers have followed suit and are also now either in the process of, or have recently put in place similar systems. It’s a fantastic example of market demand gaining results to improve their product and service.
  • Some of these service suppliers are working with the NHS too and will have secure access to each user’s medical records making it a truly integrated medical service which benefits the policy holders and eases pressure on the currently over-stretched NHS GP service.
  • Some insurers are also rolling out the service to other types of insurance policies. Exeter Family Friendly provides a virtual GP service to those with income protection policies as well as to PMI policyholders.
  • Our research has also shown that the typical PMI claimant is a 49 year old woman requiring a hysterectomy. We are also aware that the demographic studies of those seeking a second opinion are young and middle aged women. This correlation presents a market opportunity which is now, gradually, being fulfilled.
  • Online services like Ask-A-Doctor provide a question and answer written dialogue which is accessible to all, fast and user friendly. However it does not offer any visual capacity so the doctors are unable to see the patient and make an assessment of a specific issue. They are also unable to issue prescriptions so while some queries can be resolved quickly; there are limitations to this service.


As the financial year gets under way, EY’s Global Insurance Outlook 2015 has some interesting insights. The authors observe that while this year may be one of slow growth and low interest rates there are still opportunities. Shaun Crawford writes “the focus of insurers in 2015…is “technology.” Many insurers are investing in digital platforms that strengthen their relationships with customers [and] empower both businesses and consumers to better shop for insurance, making products more transparent, easier-to-understand and compare.” In turn the predicted “spend trend” in 2015 will be on cyber security.

With specific reference to protection insurance, it’s cited in the report that an “Increased awareness of natural catastrophes will continue to boost demand for protection products”. Whilst this may be true for some countries, this is not a driver in the UK.

Key Findings


Head of Business Development at Assured Futures, Richard Seaman, shares his thoughts

  • We are also working on our customers' digital body language lifestyle which will enable us to have greater insight into their individual insurance interests and online purchase behaviours. We’ll then use this to ensure we offer our customers insurance advice and a point of sale which is most suitable for them.
  • The report confirms the need to better educate customers about insurance products. We whole heartedly agree! We have, in previous Market Insight Reports, made note of this point and are involved in the 7 Families initiative which is making progress to advance knowledge of the benefits of income protection. However, perhaps impartial information on protection insurance benefits is needed too.
  • Innovation and development should also apply to products. Virtual GP appointments are gradually becoming more prolific and insurers, like Vitality Life & Health, are linking biometric risks such as health with mortality exposure to their product pricing structure. Incentives are offered to policyholders who share health and fitness information via apps and wearable devices proving their mortality risk is low or reducing.

Customer Case Study:

Customer Request: My client had been a serving soldier on the front line in Afghanistan until he was struck by an improvised explosive device (IED). His list of injuries was horrific and he had spent years in rehabilitation. Since being medically discharged from the Army he had no income or payment cover. He is currently an agency worker but without sick pay, so wanted to ensure his mortgage, car loan and ultimately his family, were protected.

Adviser's Tips:

Customer Comment: “I’ve learned not to give up hope since suffering life changing injuries. Edward took this mantra on and ran with it until I had an insurance policy which suited me at a price I could afford.”


Industry News

Income Protection

Life Insurance

Private Health Insurance



Ian Sawyer
Managing Director
Richard Harris
Head of Life Insurance
Richard Kerton
Head of Private Medical Insurance
Linsey Sutton
Head of Income Protection Insurance
Richard Seaman
Head of Business Development
Ros James
Marketing Managerdiv>

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Please note the above represents the views of the authors only and does not constitute insurance advice.

Assured Futures Ltd is authorised and regulated by the Financial Conduct Authority (FCA).

Assured Futures, Ellenborough House, Wellington Street, Cheltenham, GL50 1AP, 01242 537 082. Registration number: 3040737.


  • Over 1,346 people will die
  • 2.2 million people of working age will be off work for at least six months at any one time
  • More than 1.57 million people are claiming Jobseeker’s Allowance
  • More than 2.56 million people are claiming Incapacity Benefit/Employment and Support Allowance
  • More than 3.2 million people are claiming Disability Living Allowance.