“Last January, we pioneered the underwriting of short-term ASU products at the point of sale with the launch of Home Protector and Income Protector. These products brought ASU in line with the way all other personal lines of insurance products are underwritten.”
“We’ve since conducted a thorough review of the performance of both products by analysing the claims experience and pricing structure.
"The results of this review inspired us to make a number of actuarial enhancements. Both products can now be further tailored to each individual customer’s own risk profile. This improved flexibility means that each customer’s policy more accurately reflects their own individual needs and circumstances.”
Enhancements to both products include individual year, age-banding categories and smaller increments in benefit steps, making cover and pricing much more specific to the clients individual needs.
Home Protector provides cover specifically for mortgage or rent payments while Income Protector is a short-term income protection policy that allows customers to protect a percentage of their income. Home Protector covers a maximum monthly benefit of 120% of mortgage or rental payments or up to £3000 (whichever is the lowest), and Income Protector covers up to £3000 of income.
Accident, sickness and unemployment benefits are available for 12 months, with the option to increase accident and sickness benefits to 24 months. Both products are annually renewable.
Paterson concludes:
“When we launched these products last year, we said that it was very much the first stage in what will be a continual evolution of our point of sale proposition. These enhancements demonstrate our commitment to constantly review our protection products to ensure that brokers can access flexible, competitive insurance cover for their clients."
