Protection Watch August 2012


“If it takes five months to process your application, the deadline was last week.”

Protection Watch with Kevin Carr

1. “If it takes five months to process your application, the deadline was last week.”
December may feel like ages away but an adviser I know made a very good point recently. When speaking to a client who he knew would need a fair amount of underwriting, he said: “If, all things considered, it takes five months to process your application, the deadline was last month.“ That’s a very fair way of introducing clients to the potential importance of G-day, especially as we get closer to the day when gender neutral pricing (and other pricing issues) hit the protection market. Some life offices have already begun to issue sales aids and guidance information, which must be applauded, although many advisers are already questioning whether there is enough detail.
VERDICT: Promising lead

2. Easy Street?
A new protection provider entered the market last month. Beagle Street Life Insurance, part of the BGL group, provides instant cover with no further underwriting that can be bought directly through comparison sites. The majority of customers will buy online, although there is team of telephone advisers as well. I guess the only surprise about this sort of development is that it didn’t happen sooner.
VERDICT: Promising lead

3. Gender and I-E broker comms continue
LV= has launched a website for advisers on the forthcoming gender directive and I-E tax changes. The adviser site, which is called ‘No more guess work’ summarises the changes, the key-dates and provides tool-kits for advisers to use. This follows a guarantee from Ageas Protect, which vows to help customers who cannot be placed on risk immediately before the introduction of gender neutral pricing. It will be interesting to see what else insurers come up with before the year ends.
VERDICT: Promising lead

4. Time (Clock of the heart)
According to L&G almost half of their group income protection claims for cardiovascular conditions, such as heart disease, come from the manufacturing sector. An analysis of all the company’s group IP claims since 2000 show the manufacturing sector accounted for the greatest proportion of cardiovascular claims at 43%. I’ve always felt that linking facts and statistics that are personally relevant to individual clients was a great way to highlight the need for protection. As such the more stats like this we have the better.
VERDICT: Promising lead

5. ABI+ and severity-based CI cover trend continues
Aviva has improved its critical-illness cover by covering three new partial payment conditions and upgrading five of its illness definitions. Each new condition will be eligible for a payment of up to £20,000, which is separate to the main policy, meaning the cover is still in place should the customer need to claim in the future. Aviva has also improved five of its core definitions beyond ABI standards continuing the so-called ‘ABI+ race’ amongst CI providers. But at the end of the day, better cover is better cover, which should be welcomed.
VERDICT: Promising lead

Kevin Carr is Chief Executive of Protection Review and Managing Director of Kevin Carr Consulting.
article first appeared on IFAonline