Life & Health InsuranceMARKET INSIGHT REPORT 2014 Q4

January 2015




MSM Confused Go Compare CTM Family Insurance Services
Lowest Price £14.50 Payment
£14.70 helpucover £14.70 helpucover £13.00 Assurity £13.00 Assurity
2nd Lowest Price £14.70 helpucover £19.00 Payment Care £19.00 Payment Care £14.70 helpucover £14.70 helpucover
3rd Lowest Price £15.06 FirstCall Payment Protection £19.21 Sanctuary £19.21 Sanctuary £15.25 Realm Protection £15.25 Realm Protection
Number of Insurers 8 7 7 12 12

Income protection, covering £500 per month for 12 months, for accident, sickness and unemployment with a 30 day wait 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 £19.31 Simply
£19.31 Simply
£18.37 Aviva £18.37 Aviva
Mid-range Cover N/A £30.03 Aviva £30.03 Aviva £23.51 General Medical £23.51 General Medical
Fully Comprehensive Cover N/A £38.47 General Medical £38.47 General Medical £33.15 General Medical £33.15 General Medical
Number of Insurers 0 13 13 13 13

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

MSM Confused Go Compare CTM Family Insurance Services
Lowest Price £36.47 Beagle
£36.40 Beagle
£36.17 Beagle
£32.11 Beagle
£36.80 L&G
2nd Lowest Price £37.91 L&G £40.74 L&G £41.47 L&G £38.89 L&G £37.05 Bright Grey
3rd Lowest Price £40.59 Zurich £41.84 Aegon £41.84 Bright Grey £42.50 Ageas £39.88 Aviva
Number of Insurers 9 10 9 4 9

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 £10.00 Aegon
2nd Lowest Price N/A N/A N/A N/A £10.02 Zurich
3rd Lowest Price N/A N/A N/A N/A £14.13 L&G
Number of Insurers 0 0 0 0 7

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 Provided N/A N/A £5,217 Shepherds Friendly £5,502 Shepherds Friendly £5,502 Shepherds Friendly
2nd Hightest Cover Provided N/A N/N/A £5,165 Ageas £5,440 Ageas £5,440 Ageas
3rd Highest Cover Provided N/A N/A £4,726 L&G £5,393 Engage
£5,393 Engage
Number of Insurers 0 0 4 7
including products exclusive to Assured Futures from Zurich and Ageas
including products exclusive to Assured Futures from Zurich and Ageas

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



For this issue of our quarterly market insight report (covering the final months of 2014); we thought it may be helpful to have a collection of thoughts and opinions, reviewing the Income Protection Market during the past few years and an outlook of its future for the next few years.


The Timetric Income Protection and Critical Illness Insurance in the UK, Key Trends and Opportunities to 2017 report highlights the following:


In simple terms the review period (2008 – 2012), was characterised by recession and high unemployment. Despite economic uncertainty and rising job insecurity, (which should have supported demand for creditor insurance), growth in income protection was impaired by a combination of regulatory intervention, negative press coverage and customer antipathy. Banks have also tended to withdraw from the distribution process. Remedial measures, which include a ban on the sale of creditor insurance policies at the point of sale of a loan or credit card, has led towards the development of simplified products which can be sold on a stand-alone basis, or through price-comparison websites.

Looking forward to 2017 and despite these challenges; any prevailing expansion will be underpinned by a recovery in the UK economy and rising awareness of, and demand for, new short-term protection products. Gross written premiums in the category are forecast to grow between 2013 and 2017, logging a total of around GBP800 million by the end of this period. The paper also noted that Gross written premiums reported in annual regulatory returns totalled GBP711 million in 2012.

Having reviewed the above we have some further thoughts for your consideration about the STIP market. The headline points are:

AFL Customer Motivation Survey Report: Income Protection
October 2014


The purpose of the research was to establish why individuals are purchasing or seriously considering purchasing protection cover at that specific moment in time. This information could then be used to target specific groups of individuals at key times in their life using appropriate marketing initiatives to procure more and better quality leads for the advisors.

Research Notes

Records were collected by the specialist advisor team over a period of one month.

Duplicates and entries with insufficient data were removed, only records of sufficient completion contributed to the below findings and statistics.

Information was collected from a sample of activity during the specified period.

Key Information

Records: 712

Women: 206 (29%)

Men: 506 (71%)

Average age: 39

Average wage: £31,000 per annum

The clients were all aged between 23 and 63. The ages which occurred most frequently were: 28 & 44

Results: Motivations to Purchase ASU



A charity led campaign to provide a tax-free income for one year to seven people who have lost their income because of a serious or long-term illness or disability.

The initiative wants to highlight the need for people to plan financially in case they become too ill to earn an income. The charity Disability Rights UK are working with the seven families where the main breadwinner has been forced out of work by an accident or illness and not received any related insurance pay out.

Seven Families is about awareness; it’s about prompting conversations among families about how they would cope; it’s about letting a group of families who’ve hit a crisis talk to other families who haven’t…yet. Whilst this applies to the public it is also relevant to the adviser community where advice around protection is crucial.

How Assured Futures Is Involved

AFL is supporting one of the seven families, initially to offer free financial reviews and income protection advice. We soon realised, our involvement was to become much more involved.

Daniel Pinder, is 50, divorced and two of his three children live with him. He was born deaf and developed epilepsy as a child, neither condition hindered his ability to work and he had a successful career as a rehabilitation officer for visually impaired people.

Since being diagnosed with MS in 2009 he eventually had to stop working in March 2014. He has difficulty walking for any distance and steps can be problematic for him and as MS is degenerative, these current impediments will worsen and increase. Daniel can still type and drive with an adapted car, he feels that as he still has 15 years until retirement age, he’d like to return to work and feel like he’s contributing to society. Despite being experienced, having qualifications and the desire to work, Daniel’s self-esteem is low he’s concerned any potential employers or colleagues may not see his worth. His children are also concerned that without a job, his confidence will reduce and perhaps cause a downward spiral for his condition too.

AFL is helping Daniel gain access to the tools which will allow him to build this back up himself and achieve his goal of working again. For us, as a broker of protection insurance, our involvement in this important initiative has put much wider issues surrounding those afflicted by long-term illness and accidents in the spotlight. We’ve learned that for those with a policy covering accident or sickness, the money from a claim is of course helpful for physical logistics and medical needs. However, the psychological impact there is on the policy holder and those around them is often forgotten or ignored. It is this that actually needs to be addressed and hopefully our assistance with Mr Pinder will ease this strain and allow for the emotional element of accidents and sickness to be acknowledged by the wider IP industry and open a discussion on how it can be addressed and how any solutions (careers counselling, social groups etc.) are funded.

Our advisers, since we’ve communicated internally Daniel’s story, have more understanding of the direct impact not being insured can have and have, as a result, become better advisers – more empathetic and a clearer understanding or how someone’s life can be changed.

Customer Case Study:

Customer Request: A client rang in for a policy that would cover his funeral costs. During the first few minutes of our conversation he mentioned his wife wasn’t able to get any cover as she was too young for an Over50s policy and had a serious medical condition. His wife is aged 46 and had a brain haemorrhage two years ago, leaving her with memory loss and balance problems. He was her full time carer and her condition was so severe, she couldn’t be left alone.

Advisor Tips

Customer Comment: "It's not like me to single out an adviser but on this occasion I feel that [our adviser] deserves a very special mention as I felt that she went over and above the call of duty and made this process very simple and with great professionalism. Thanks"


Protection Insurance Industry

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
Ros James
Marketing Manager

Family Insurance Services Logo


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


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.