“Some providers have been waiting to see whether we could bring our vision to reality and with LifeSearch having rolled UnderwriteMe out to their entire adviser force, Cavendish Online live in the market with the first direct-to-consumer ‘buy now’ service using our technology and L&C Mortgages committed to launch with us in the coming months, we’ve proved that the theory works exceptionally well in practice.”
Mr McKenna adds: “In 2017, those insurers not engaged with these [comparison] services are likely to see their business volumes hurt.”
F&TRC benchmarks the operational procedures of life and protection companies, focusing on aspects such as the policy wording and claims process, and then provides qualitative ratings allowing advisers to compare providers. Mr McKenna advises using such qualitative data alongside the pricing information provided by the likes of UnderwriteMe, XRAE and Direct Life “to give a better indication of value and quality”.
UnderwriteMe is also looking at providing a ratings service further down the line. Mr Jeynes adds: “Currently, advisers or customers can expand each product choice to learn more about the USPs of each insurer and we’re looking into adding a ratings/evaluation service too.”
Critical illness cover
After many years of critical illness (CI) policies becoming ever more complex several providers have recently gone back to basics. AIG Life in 2016 launched Key3, which pays a lump sum upon diagnosis of cancer, heart attack or stroke.
The provider says it is filling a gap in the market by targeting people who are traditionally under-insured, such as younger, single renters. AIG claims that the policy will be around 30 per cent cheaper than a standard CI policy.
Key3 is available with or without additional life insurance and can be taken out by a single person, by a couple as joint life (first event) or on the life of another person/s.
Commenting on the product, Emma Thomson, life office relationship director at LifeSearch, said: “It’s much clearer for customers to understand what they’re covered for. This will hopefully encourage more consumers and intermediaries to consider disability cover who might otherwise not look beyond life insurance.”
Income Protection
Income protection (IP) providers have in 2016 continued to position themselves as service providers as well as product providers, extending their range of added value services and many now introducing carers’ cover.
This seems a sensible move considering the massive cutbacks in social care funding in the UK and, in line with this, recent figures from Employers for Carers, which show that one in nine employees are caring for someone who is older, disabled or seriously ill.
