“We have also seen simplification in terms of more consumers being accepted on an ‘own occupation’ basis,” adds Ms Thomson. “If an individual can’t do their own job they can claim, as opposed to not being able to complete a number of ‘work tasks’ or being assessed whether they are unfit enough to do any job, which is essentially what the welfare state assessment is. This makes things clearer, fairer and enables more clients to claim.
“Going forward, we will shortly be seeing new products launch that should make things simpler for consumers with specific health conditions, to make it easier for them to buy cover. This is a very welcome move.”
Royal London recently set the bar in the life market on that score, more of which next.
Life Insurance
Royal London said at a recent conference that it would launch a life cover policy tailored for people with diabetes during Q1 2017. On an annual basis, policyholders will be asked to share the results of HbA1c – the standard test to measure blood sugar levels. If there has been any improvement in their condition, Royal London will look at reducing premiums.
I spoke to a close friend with Diabetes, who said: “This is a fantastic idea. Most people are very regularly monitored, sometimes twice a year, so it should be easy for those who are trying to improve or at least stabilise the condition.”
Other notable developments in the life market include the growing demand for medical screening, second opinion services, health MOTs, GP consultations and specialist referrals. For a number of years, Square Health has provided screening services to major providers.
It is now helping to make life insurance “a more tangible product”, says marketing director Steve Casey. “There’s an increasing appetite for 2nd opinion services, health MOTs and virtual GP services in life products. These kinds of services are now proven to help reduce lapse rates, not to mention helping customers manage conditions, preventing them from becoming more serious.”
Square Health has worked with one IFA recently to set up a loyalty service for the clients to whom it has sold life insurance, which included its 2nd opinion and virtual GP services. “The regulator is always saying that IFAs should be talking to customers more regularly – encouraging them to make frequent use of our services gives IFAs a good reason to make contact,” adds Mr Casey.
Combined products
PricewaterhouseCoopers (PwC) in its report called Life Insurance 2020: Competing for a Future, identified a gap in the market with regards to integrated health and wealth solutions and advice. This is attributed to a combination of the UK’s huge and ever growing retirement population, the scaling back of state support and the rising cost of healthcare.
