Protection Watch with Kevin Carr - March 2013


1. Up, down, turnaround, please don’t let me hit the ground...

Protection Watch with Kevin Carr

1. Up, down, turnaround, please don’t let me hit the ground
The protection market has been all over the place in Q1. Following the much talked about G-day and taxation changes some premiums have gone up, while some have gone down, likewise the volume of protection business being written, and who is writing it, seems equally volatile. I’m told that the expected migration of non-protection advisers into protection is gathering pace, which is no bad thing, and that some of the models who primarily existed to switch business around on price are already struggling, which is perhaps no bad thing either. The market will settle down, but it may take some time.
VERDICT: Promising lead

2. The IT Crowd

Those working in Information Technology have the highest volumes of searches for Accident, Sickness and Unemployment cover according to new research by MoneySupermarket. Analysis of the data shows the top ten sectors whose employees have been looking for cover to protect themselves should they need to cover loss of income. Topping the list were those in the IT sector who recorded the most searches for short term income protection in the last 12 months. Taking second place were those in the banking sector and third in the list were those working in the retail sector.
VERDICT: Promising lead

3. Don’t know, don’t care

Consumers are increasingly confused about protection insurance and instead many adopt a casino mentality, according to The Syndicate’s second annual report, published in January. The report, based on an omnibus survey of over 3,000 adults, found that half of those polled said life insurance was the most important type of protection, although 80% could not accurately identify how basic life cover worked. The economy also had a significant affect on people’s planning, with 58% saying they had abandoned plans to save in the current economic environment to focus on monthly outgoings. Other findings included:
• 62% of respondents said they were more likely to buy a protection policy if it was rated by Which? magazine
• Up to three quarters (75%) said they were less likely to cancel an insurance policy if their loyalty was rewarded
• The vast majority (80%) said it would be useful to receive an annual statement detailing their existing cover
• 75% could not identify how a basic critical illness insurance policy worked
VERDICT: Back to the lab

4. I bet you don’t look good on the dance floor

Sixty five per cent of men are now classed as obese – and only one in three is now a ‘normal’ weight, according to new figures from the NHS. The report shows a ‘marked increase’ in obesity over the last 20 years, with 58% of women now classed as overweight or obese. Just 37% of people are a 'normal weight', which is defined as having a body mass index (BMI) of 18.5 to 25.
VERDICT: Back to the gym

5. We are the Champions

Ageas, Aviva and LV= lead the shortlists for this year’s 10th LifeSearch Protection Awards, which take place in London on 7 March 2013. The annual awards, which are voted by the firm’s advisers, include a range of categories including best service, best product and best leader. Herschel Mayers of PruProtect, Louise Colley of Aviva and Richard Verdin, also Aviva, are nominated for the coveted Best Protection Leader Award.
VERDICT: Promising lead

Kevin Carr is Chief Executive of Protection Review and Managing Director of Kevin Carr Consulting.
article first appeared in Professional Adviser