Life & Health InsuranceMARKET INSIGHT REPORT 2014 Q3

OCTOBER 2014

Contents

COMPETITOR ANALYSIS

Key

MSM Confused Go Compare CTM Family Insurance Services
Lowest Price £14.50 Payment Care £14.70 Helpucover £14.70 Helpucover £13.00 Assurity £13.00 Assurity
2nd Lowest Price £14.70 Helpucover £19.00 PaymentCare £19.00 PaymentCare £15.25 Realm Protection £15.25 Realm Protection
3rd Lowest Price £15.06 FirstCall Payment Protection £19.21 Sanctuary £19.21 Sanctuary £17.89 DMS £17.89 DMS
Number of Insurers 8 7 7 10 10

Income protection, covering £500 per month for accident, sickness and unemployment with a 30 days wait period (excess period) for an employed 35 year old male earning £12k per year, living in GL7.

MSM Confused Go Compare CTM Family Insurance Services
Basic Cover N/A £13.12 WPA £13.12 WPA £13.12 WPA £13.12 WPA
Mid-range Cover N/A £31.75 Aviva £31.75 Aviva £29.02 General Medical £29.02 General Medical
Fully Comprehensive Cover N/A £45.11 Aviva £45.11 Aviva £40.45 General Medical £40.45 General Medical
Number of Insurers N/A 13 12 12 12

PMI prices based on 35 year old male non-smoker living in GL7 with Nil Excess.

MSM Confused Go Compare CTM Family Insurance Services
(Not Discounted)
Lowest Price £36.47 Beagle Street £37.21 Beagle Street £36.17 Beagle Street £35.60 Beagle Street £44.42 Scottish Provident
2nd Lowest Price £39.82 L&G £42.42 L&G £43.29 L&G £42.38 L&G £44.75 Aviva
3rd Lowest Price £43.40 Aviva £43.57 Aegon £43.32 Bright Grey £43.87 Aegon £44.82 L&G
Number of Insurers 10 10 9 7 10

Life (Term) prices based on 35 year old male non-smoker, living in GL7, covering £150,000 over 20 years and inclusive of CIC.

MSM Confused Go Compare CTM Family Insurance Services
Lowest Price N/A N/A N/A N/A £61.29 LV=
2nd Lowest Price N/A N/A N/A N/A £65.33 PruProtect
3rd Lowest Price N/A N/A N/A N/A £69.68 PruProtect
Number of Insurers 0 0 0 0 8

Life (WOL) prices based on 35 year old male non-smoker, living in GL7, covering £150,000.

MSM Confused Go Compare CTM Family Insurance Services
Highest Cover Provided N/A N/A £5,217 Shepherds Friendly £5,502 Shepherds Friendly £5,502 Shepherds Friendly
2nd Hightest Cover Provided N/A N/A £5,165 Ageas £5,440 Ageas £5,440 Ageas
3rd Highest Cover Provided N/A N/A £4,726 L&G £5,395 Engage Mutual £5,395 Engage Mutual
Number of Insurers 0 0 4 6 5

Over50s prices based on 60 year old male living in GL7 choosing a premium of £20 per month.

SEARCH AND SWITCH - ENCOURAGING BETTER PRODUCTS AND CUSTOMER BENEFITS

Accenture’s thought leadership report on financial consumer behaviour offers a new perspective on the changing ways of customer interaction with financial institutions. The report, entitled: “Holding on to profitable customers in a high-switching world” provides insight on both customer behaviour and the reactions to these comportments by financial institutions. It also comments on the ways customers interact with financial services institutions, including insurance providers and how it’s changing in terms of loyalty and how that loyalty can be gained, harnessed and acted upon.

Richard Harris, Head of Life Insurance at Assured Futures shares his thoughts:

Key Facts from the report:

OCCUPATION RATINGS: THE NEED FOR GREATER CLARITY

A recent article in Cover magazine highlighted the problem caused by the imprecise definition of occupations used when underwriting Income Protection (IP) policies and claimed this creates a ‘considerable sales barrier’.

Linsey Sutton, Head of Income Protection at Assured Futures gives an overview of the report and examines whether addressing this issue could have a direct effect on increasing the volume of long term IP product sales.

Key Facts:

UK PROTECTION MARKET - REASONS TO BE OPTIMISTIC

A report by Gen Re suggests that although sales results for Quarter 2 are not as positive as they had been for Quarter 1, there is still evidence to encourage cautious optimism. In common with all players in the financial services industry, insurance sales have, in recent years, been battered by the economic climate and suffered from mistrust by the general public. Are we now emerging into a healthier era helped by the MMR effect, new product developments and awareness initiatives such as the Seven Families project?

Ian Sawyer, MD of Assured Futures shared his thoughts on the facts and figures:

Key Facts:

CUSTOMER CASE STUDY: CHALLENGING PREVIOUS MEDICAL INVESTIGATIONS

CUSTOMER'S REQUEST: Following on from a purchase of a family PMI policy, we were tasked with finding a client a life insurance policy inclusive of critical illness cover which would take into account the fact that the client had, four years previously, found lumps in her breast which had not been cancerous. A policy was found which included a breast cancer exclusion so an alternative was sought and found successfully which removed the breast cancer exclusion even when new lumps were found and investigated (and again diagnosed as benign) during the underwriting process.

ADVISER'S TIPS

CUSTOMER COMMENT: “I am very grateful to the staff at Assured Futures. All of them, from the advisors to the administrative staff, have taken the time to familiarise themselves with my situation and subsequently dealt with my queries sensitively and professionally. They have all done way over and above what they have needed to do just for my satisfaction. I can’t tell you what a relief and comfort that simple fact has made to me. Their personal touch and communication methods are very impressive in this age of computerised, impersonal banking and purchasing.”

NEWS ROUND - TOPICAL LIFE AND HEALTH INSURANCE NEWS

Industry

Income Protection

Life Insurance

Private Health Insurance

INSURER WATCH – KEEPING YOU INFORMED ON LIFE & HEALTH INSURER NEWS

TODAY IN THE UK:

  • 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.

CONTACT

Ian Sawyer
Managing Director
Richard Harris
Head of Life Insurance
Richard Kerton
Head of Private Medical Insurance
Linsey Sutton
Head of Income Protection Insurance
Ros James
Marketing Manager

Family Insurance Services Logo

Awards:

- UK Broker Award Finalist
- Edge Awards Runner-up
- Cover Excellence Awards - shortlisted

Awards

Family Insurance Services is a trading name of Assured Futures Limited.

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

Assured Futures, Ellenborough House, Wellington Street, Cheltenham, GL50 1AP, 01242 537 082.