Life & Health InsuranceMARKET INSIGHT REPORT 2015 Q2

July 2015




MSM Confused Go Compare CTM Family Insurance Services
Lowest price £24.40 Payment Care £21.00 Payment Care £21.00 Payment Care £24.50 Realm £20.06 National
2nd Lowest price £24.50 Realm £26.40 HelpUCover £26.40 HelpUCover £26.00 Assurity £24.50 Realm
3rd Lowest price £24.56 FirstCall
£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 £19.31 Simplyhealth £19.31 Simplyhealth £14.69 General Medical £14.69 General Medical
Mid-range cover N/A £37.32 Health-On-Line £37.32 Health-On-Line £25.18 General Medical £25.18 General Medical
Comprehensive cover N/A £42.49 SimplyHealth £42.49 SimplyHealth £33.15 General Medical £33.15 General Medical
Number of insurers 0 12 12 14 14

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
£11.51 Aviva £11.06 Beagle
£11.24 Beagle
£11.71 Legal & General
2nd lowest price £11.16 LV= and Aviva £11.52 Beagle Street £11.27 Aviva £11.27 Aviva £12.03 Aviva
3rd lowest price £11.53 L&G £11.60 L&G £11.29 L&G £11.29 L&G £12.61 Bright Grey
Number of insurers 10 12 10 9 10

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 £23.23 AIG
2nd lowest price N/A N/A N/A N/A £23.59 Vitality Life
3rd lowest price N/A N/A N/A N/A £31.15 Zurich
Number of insurers 0 0 0 0 8

Life (WOL) prices based on 45 year old male, non-smoker, living in GL7, covering £30,000.

MSM Confused Go Compare CTM Family Insurance Services
Highest cover N/A N/A £5,217 Shepherds Friendly £6,020 One Family £6,020 One Family
2nd hightest cover N/A N/A £5,010 AIG £5,929 Shepherds Friendly £5,929 Shepherds Friendly
3rd highest cover N/A N/A £4,823 L&G £5,699 AIG £5,699 AIG
Number of insurers 0 0 4 6 6

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.


The recent report by Swiss RE was encouraging and optimistic showing an increase in numbers of protection policies sold in 2014 in comparison to 2013. It was not without cautions however. It suggested there were new routes to market to be explored and new markets to target if the recent increase in sales is to be sustained.

Key Facts:

Ian Sawyer, MD of Assured Futures gives his view:



Customer's request

At renewal stage, our client, based in Surrey, wanted to amend her hospital list to reduce her premiums. Insurers negotiate with hospitals or groups of hospitals the costs of tests and treatments. Hospitals are then grouped together according to how much they charge. As a rule, London hospitals tend to be more expensive. If the more expensive hospitals are included in the policy, the premium will reflect this. Excluding the more expensive hospitals from a policy can be a way of reducing the monthly premium. In this case, the client wanted to reduce her monthly costs so, taking advice from our specialist renewal team, given her location outside of London, she chose a cheaper and more suitable policy with fewer hospitals to choose from, but with hospitals near to her home included at a reduced cost.

Some months later the client needed some treatment for a shoulder injury. When she came to check which hospital she could receive treatment at following a GP’s referral a few weeks after her renewal, she was told by the insurer which hospital she could be treated at and went ahead with the procedure. She was then told by the insurer, the hospital she used was not on the reduced list she now had in place and the claim would not be paid so she called us for help.

Advisor's tips:

"Without the expertise, knowledge and personal relationships of my adviser, I would have been left without cover and out of pocket. My faith in the insurance industry has been restored thanks to Assured Futures.”


Osbourne’s recent budget was clear on the subject of welfare: the Government will be cutting benefits. This will impact on individuals and businesses alike as people, in theory, move towards employment. It will also impact on the insurance industry providing a huge opportunity. But are we ready?

Assured Future's Head of Income Protection Linsey Sutton comments:

Key Facts:


The Over 50s life insurance sector is at a pivotal point of its lifespan. As the target audience adapts with technological developments and increased levels of understanding demands more flexible and reasonable products. The insurance industry needs to keep up with its customers.


Sales of Over 50s life insurance products are traditionally made direct to customer and the majority is still sold this way. The main and long established providers of Over 50s life insurance products are AXA SunLife, Aviva which also provides the underwriting for the Post Office products. They all rely heavily on expensive TV advertising, free gifts and celebrity endorsement. It’s thought by some this investment in the promotion may be a little imbalanced, as expressed by Which? Money editor Gareth Shaw who, following the organisation’s recent study into this market said "Some companies are cashing in on the over-50s through poor-value products and clever marketing.” This can render the products to have such a high cost the profit margin is now seemingly unsustainable.

The direct to consumer route to purchase is contracting and the Swiss Re Term and Health Watch 2014 showed that sales of Over 50s products had declined in 2014.


Royal London recently produced a report investigating the value of Over 50s cover and calling the industry to change the products making them more relevant, flexible and better value for customers. Their findings identified that “28% of UK adults who purchase the insurance cancel their policy and £173m of life insurance was lost last year (based on 52,000 people cancelling their policy) representing £86m of wasted premiums”. Royal London believes these cancellations to be driven by financial difficulties which leave customers poorer and unprotected and that the products are confusing. In conclusion the products themselves should change as habits within the target consumer change.

Jerry Toher, CEO of Royal London's Consumer Division said: "The new analysis from Which? shines a well-deserved light on a sector that sells unfair and inflexible products: over-50s life insurance. Royal London welcomes these findings and we hope they go some way to disturb a market that we are also determined to shake up, because it is in urgent need of repair.

The target audience is increasingly using the internet to research and purchase these products - termed as the Silver Surfers – 45-55 year olds are turning to the internet more than any other age group. 83% of adults now go online using any type of device and there has been a nine percentage point increase in those aged 65+ ever going online - 42% vs. 33% in 2012 according to Ofcom Adults’ Media Use and Attitudes Report 2014.

This affects the route to market for many products including insurance policies allowing for potential growth in sales for the intermediary and comparison space. In the intermediary market these products are costed more effectively and are therefore better value.

There is lots of activity in this sector;


The market as a whole has declining sales but AFL sales are increasing. Our channel of sales through an intermediary via comparison websites is the opposite - our like for like sales in Q2 of 2015 are up 21% from the same quarter last year. AFL is in a good position within the sector; predicting, identifying and capitalising on the opportunities presented by the changes in the market.

Our panel is the largest in the market, a contrast to and Money Super Market who have no panel for these products.

The tables below compare quotes for Over 50s policy payouts for those bought direct from the insurer and those from one of our intermediary trading styles Family Insurance Services. Without using celebrity endorsement or advertising, we provide significantly more value.


Provider Payout Incentives
AXA Sunlife £2,190 First month free, prize draw for £100
Post Office (Aviva) £2,066
Aviva £2,046 £50 M&S Vouchers
LV= £1,953
Royal London £2,304 Can reduce payments at any time
Based on a 61 year old non-smoker
Provider Payout
Sheperds Friendly £2,855
One Family £2,700
AIG £2,533
L&G £2,345
Aviva £2,045
LV= £1,918
Based on a 61 year old non-smoker

Richard Harris, Head of Life Insurance at AFL commented

“We have always focused on communicating with our clients so we can adapt our provision and service according to their needs and demands. This approach enables a flexibility to make changes easily as the market changes not as an after –thought.”


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>

Family Insurance Services Logo



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.