Life & Health Insurance MARKET INSIGHT REPORT 2016 Q2

JULY 2016



Some exciting changes have been taking place behind the scenes at Assured Futures. Our company has grown hugely amidst a competitive industry and our re-branding strategy is about our renewed commitment to being a strategic partner of choice for insurers and aggregators alike. Our new mission is to “make the complicated simple” and with this at the core of the re-brand we have made the decision to put all of our services (Assured Futures, Family Insurance Services and PMI Partners) under the Assured Futures umbrella.

With the help of employees and external consultants alike, we have adopted the concept of “freedom” and simplicity as part of our new brand. Insurance is unnecessarily complicated. We make it as simple as possible, providing the knowledge, expertise and reassurance our customers and partners need to give them the freedom to focus on what they do best.

As we further emerge into this new exciting phase for the company, we would like to take this opportunity to thank all of our partners for their support so far and we look forward to working with you all in the next part of this great journey.

Freedom Assured Futures Brand



MSM Confused Go Compare CTM Assured Futures
Lowest price £25.31 Realm £17.20 Fortify Homeowner 120 £25.30 Realm £24.00 Realm £16.42 National Assurance
2nd Lowest price £25.37 FirstCall Payment Protection £20.70 Protection £27.07 Homeowner Income Protection £25.10 Paymentcare £25.10 Paymentcare
3rd Lowest price £27.38 Paymentcare £21.10 Fortify Homeowner 90 £32.14  Legal & General £26.86 Assurity £26.86 Assurity
Number of insurers 7 9 6 10 9

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

MSM Confused Go Compare CTM Assured Futures
Basic cover £27.12 Vitality £27.45 Bupa fundamentals £12.02 WPA £12.02 WPA £12.02 WPA
Mid-range cover £39.12 Vitality £29.45 Vitality £27.45 Bupa fundamentals £24.97 General and medical £24.97 General and medical
Fully Comprehensive Cover £59.90 Health on line £39.37 Aviva £43.75 Aviva £40.39 General and medical £40.39 General and medical
Number of insurers 7 10 12 13 13

PMI prices based on 30 year old male, non-smoker living in GL52, with an excess of £250.

MSM Confused Go Compare CTM Assured Futures
Lowest price £7.87 Beagle Street £7.13 Admiral £7.87 Beagle Street £7.74 Beagle Street £8.70 L & G
2nd lowest price £8.65 L & G £8.87 Aviva £8.21 L & G £8.49 L & G £8.86 Aegon
3rd lowest price £8.93 LV= £8.99 LV= £8.57 Aviva £8.71 LV= £8.93 LV=
Number of insurers 8 11 8 7 11

Life (Term) prices based on 30 year old male, non-smoker, living in GL52, covering £200,000, over 20 years with a fixed premium.

MSM Confused Go Compare CTM Assured Futures
Lowest price N/A N/A N/A N/A £10.52 AIG
2nd lowest price N/A N/A N/A N/A £10.81 Vitality
3rd lowest price N/A N/A N/A N/A £10.82 Old Mutual
Number of insurers N/A N/A N/A N/A 8

Life (WOL) prices based on 45 year old male, non-smoker, living in GL52, covering £10,000.

MSM Confused Go Compare CTM Assured Futures
Highest cover N/A £5,605 One Family £5,217 Shepherds Friendly £5,605 One Family £5,605 One Family
2nd hightest cover N/A £5,502 Shepherds Friendly £5,010 AIG £5,502 Shepherds Friendly £5,502 Shepherds Friendly
3rd highest cover N/A £5,277 AIG £4,711 L&G £5,277 AIG £5,277 AIG
Number of insurers 0 5 4 6 6

Over 50s prices based on 60 year old male, non-smoker, living in GL52 choosing a premium of £20 per month with a 24 month wait period.


With Brexit still in the forefront of everyone’s minds, it would be remiss for us to not make reference to it in this quarter’s market insight report. As this truly is an unprecedented event in the history of the UK, the uncertainty continues, as does the debate, as companies and people from both sides continue to look at whether Brexit will ever be a positive decision for the UK.

Szu Ping Chan, writing in the Telegraph at the end of June 2016 argues that Brexit may be a good thing for British based insurers. She writes of the effect that the EU’s regulatory framework (Solvency II) has had on the insurance industry as a whole and interviews Lord Turnbull, the former Head of the Civil Service who believes that the EU has “damaged competitiveness and constrained the sector’s ability to expand.” The Solvency II framework which came into effect at the beginning of this year has been widely criticised by the insurance industry as a whole especially because of the huge costs associated with implementing it and also as so far the framework has failed to achieve a level playing field in the insurance sector. The Chairman of the Treasury Select Committee (TSC) concluded that “the vote to leave may have created considerable risk. It also creates opportunities.”

Ian Sawyer, Managing Director of Assured Futures gives his view:



Jennifer Gilchrist of Royal London writes in Money Marketing how whole of life plans are so much more than an inheritance tax planning tool and that advisers should be thinking of the other functions they can serve when recommending life insurance policies to their clients.

She rightly observes that as the dynamics of modern day life are changing and evolving, whole of life plans may become a more and more appropriate choice for consumers. As people have children a lot later in life and with the average age of the first time buyer continually getting older, it seems to some that term assurance is becoming less and less relevant. Here are some features of whole of life policies:

As lifestyles change, it is only right for advisers to constantly review insurance policies against the modern day needs of clients- back in the 1940’s most people buying life insurance bought whole of life policies. It then became widely accepted in the early 1980’s that people were better off buying a term assurance and then investing in the markets where they would get better returns. Maybe now, the tides are turning once again and it is up to insurers and brokers to ensure that their advisers fully understand the features and benefits of both whole of life and term assurance policies and that they make the right recommendation based on the personal circumstances of their clients rather than just following the status quo.

Richard Harris, Life Insurance Team Manager at Assured Futures comments:
“We whole heartedly agree that there is definitely a need for whole of life policies and we would always in an ideal world recommend them to our customers. We don’t however live in an ideal world and as the article alludes to, with the average age of first time buyers increasing into their early 30’s and with the need for sizeable deposits in order to purchase their homes, budgets are already stretched. Ironically, the ideal time to buy a whole of life policy is when someone is in their 20’s when premiums will be lowest but human nature is to go for the cheapest policy that does the job such as covering the mortgage but this doesn’t allow for long term planning.”


An article published in Cover Magazine in June 2016 detailing recent research carried out by Canada Life Group Insurance, claims that the majority of British workers could live for just 4 months on their savings were they to lose their job. Other research carried out in the past, as well as our experience with some clients suggests that the figure could in fact be nearer to 4 weeks.

The biggest challenge to those advisers selling income protection is that most of the people without adequate protection totally believe that they are immune to anything bad happening to them which will stop them from working. The culture of "it won't happen to me' is prevalent and deeply embedded in many people's psyche. The widely promoted '7 Families' initiative has gone a long way to highlighting the impact that failing to have adequate protection in place can have on normal everyday families but this recent research shows that there is still much to do.

A survey carried out by Zurich in 2015, found that as well as thinking that bad things are things that happen to other people, those people who accept that something could prevent them from working such as an accident or poor health, believe that if it were to happen to them, it would be much later in their life and three quarters of those surveyed believe that they look after themselves enough to prevent them from becoming ill. Half of British people believe they have a less than one in 10 chance of being unable to work through disability when in reality 300,000 people a year suffer health related issues which sees them having to rely on the Government welfare system. Worryingly, as well as being naive when it comes to understanding issues that may affect them and stop them from working, many people also totally overrestimate the amount of money paid out in the form of Government benefits. Cover magazine estimates that UK workers average state benefits for illness to be £172 per week, which is in fact £90 less than they would actually receive were they to have to claim this support.

Linsey Sutton, Head of Income Protection at Assured Futures comments:

The insurance industry knows that they face a challenge in increasing the uptake of income protection but the initiatives such as 7 Families that keep it in the media are sure to help. The role of the adviser is critical in ensuring that people are given a fair and unbiased idea of what would happen if they were unable to work due to ill-health. It is vital that there is a concerted effort to ensure that the scenarios outlined both in the press and by insurers and brokers alike are not perceived to be negative and scaremongering in nature but rather a vehicle in opening eyes to the difficulties that would be placed upon someone without the necessary protection in place.




A client was insured with an insurer who at renewal changed the terms and conditions of their policy. These changes reduced the access to hospitals and so the client's partner was no longer able to use the hospital or consultants that she had previously been using as part of her cancer treatment.



"This particular case just highlights the message that we are constantly trying to communicate and that is that a Broker can provide so much more than just finding a customer the right policy at the right price. We provide constant support to a customer including helping them through the claims stage and being their voice when they are experiencing difficulties.”
Ian Pascall, Head of Medical Insurance at Assured Futures



Ian Sawyer
Managing Director
Richard Harris
Life Insurance Team Manager
Ian Pascall
Medical Insurance Team Manager
Linsey Sutton
Income Protection Team Manager
Rebecca Fludder
Commercial Development Manager


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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. Infographic Icons made by Freepik from is licensed under CC BY 3.0