2024 saw breakthrough integrations, upgraded offerings, and improved underwriting with Consumer Duty kicking ‘fair value’ back into the spotlight.
In January, Guardian Financial Services (Guardian) launched its new low-cost life cover and announced several significant changes to its protection menu. The provider’s ‘Life Essentials’ product includes various benefits offered with Guardian’s flagship Life Protection, such as a dual life approach, premium waiver, optional Children’s Critical Illness (CIC), Payout Planner, and additional added-value services.
“The introduction of greater choice from Guardian has been well received by the market. Sitting alongside our existing premier life cover, this addition provides more choice for a wide range of advisers,” explained Hilary Banks, Sales Director at Guardian.
Guardian announces significant changes to its protection menu
Later that month, Cavendish Online announced its partnership with Aveni.ai for Artificial Intelligence (AI) analytics and automation technology - making it one of the first protection distributors to use AI to improve customer experience.
Aveni.ai’s Generative AI & Natural Language Processing (NLP)-based technology platform learns from customer calls, enabling Cavendish Online to speed up improvements in the quality of advice. It also detects customer vulnerabilities during a call.
Rose St Louis, Protection Director at Lloyds Banking Group & CEO of Cavendish Online, has said “delivering excellent outcomes for all customers is at the heart of our mission.” She believes this partnership with Aveni.ai puts Cavendish at the “forefront of AI-driven innovation for financial services distribution, and further demonstrates our commitment and focus on delivering great customer outcomes.”
HSBC Life introduced new digital rules for mental health disclosures made during a Life and/or Critical Illness (CI) application – building on its mission to remove the stigma surrounding mental health.
HSBC Life recognises that customers with historic thoughts of suicide or self-harm should have the opportunity to receive standard terms at application stage, with no back-office underwriting or mandatory GP report.
HSBC Life no longer requires GP reports for historic thoughts of suicide or self-harm
In March, LifeSearch announced its latest ‘test and learn’ partnership with 1st Central, to navigate the introduction of protection when buying Car Insurance. Considering that most new driver policies are tailored towards 17-24-year-olds, LifeSearch envisions this partnership opening a new avenue for customers to start having protection conversations earlier than when buying a mortgage.
“We’ve transformed buying Car Insurance, making it a more accessible and effortless experience for customers. The relationship that this success has built with our customers means that we have the unique opportunity to tackle the wider UK protection gap,” explained Rose Howarth, Head of Partnerships at 1st Central.
LifeSearch launch ‘test & learn’ partnership with 1st Central
Next up, British Friendly launched its optional Children’s CIC which can be added – for an additional cost – to its new Protect & Breathing Space Income Protection (IP) policies. This product provides policyholders with a cash lump sum if their child is diagnosed with one of fifty-seven 100% payment conditions and twenty additional 50% payments.
Furthermore, it includes a 100% payment for admission to a UK waiting list for eight named surgeries as well as optional Fracture Cover for eighteen common fractures. Notably, this benefit includes flexibility to add at a later stage, subject to the policyholder meeting one of the five life change/GIO requirements. This cover doesn’t include Child Death Benefit or Terminal Illness payment.
Commenting on the launch, Alan Knowles, Managing Director at Cura Financial Services, said “As an adviser who usually prioritises IP over other plans, the ability to add comprehensive Children’s CIC is welcome news. We don’t want to think about these things happening to our children, but if it does, then having some money can help reduce the financial worry.”
British Friendly launch optional children’s CIC for its new Protect and Breathing Space IP policies
Expanding Bupa Well+ (which is now available for self-paying customers to sign up directly for a 12-month subscription), the private healthcare provider has introduced Bupa Well+ Silver. Alongside access to digital GP & nurse appointments, customers with Bupa Well+ Silver will be able to book digital consultations with physiotherapists and mental health specialists.
“Our Bupa Well+ subscription service aims to make health & wellbeing services more accessible and affordable. We know some of the biggest concerns people have about their health is accessing appointments when they need them. We hope that giving people the option to book these around their busy schedules will allow them to get the health & wellbeing services they need,” said Richard Washington, Interim General Manager at Bupa UK Insurance.
Bupa expand health & wellbeing subscription service
In October, Scottish Widows launched its new flexible IP product after finding less than one in ten (8%) adults in the UK have protection in place, yet 42% worry that their household wouldn’t cope if they were unable to work due to ill-health or injury.
The policy includes fracture & hospitalisation benefits as standard with no extra charge, rehabilitation/proportionate benefit as a top-up payment to help customers return to the workplace, and partnership benefits such as ‘Clinic in a Pocket’ (included in cover) to access GP services 24/7 and receive sick notes, as well as dedicated personal nurse services via RedArc.
As part of this launch, Scottish Widows joined the Income Protection Taskforce (IPTF), formalising its long-term commitment to open dialogue on the importance of IP. Jo Miller, Co-Chair of the IPTF, said it welcomes Scottish Widows’ timely launch which will “support the pressing need for accessible & affordable IP solutions. We look forward to continued dialogue and initiatives that will drive greater awareness and adoption of IP.”
Scottish Widows launch new IP offering and enter long-term commitment with IPTF
Recently, CIExpert launched its ‘single is best’ campaign, asking why individual protection plans aren’t preferable for couples, with advisers forced to justify selling single plans over joint life in numerous networks.
CIExpert’s campaign already has the support of Johnny Timpson OBE, Jeff Prestridge, Roy McLoughlin, Vicky Churcher, Neil McCarthy, Emma Thomson, Tony Mudd, Phil Cleverley, Steve Casey, Christine Husbands, David Mead, Emma Vaughan, Ruth Gilbert, Kevin Carr, Peter LeBeau, Roger Edwards, and Paul Reed.
“We strongly believe an industry shift is needed to prevent consumers from holding suboptimal policies for marginal savings. There are very few instances where joint life plans can deliver a better customer outcome than two individual plans,” explained Alan Lakey, Director at CIExpert.
CIExpert asks why advisers are forced to justify selling single plans over joint life to couples
Unum UK has launched its new digital portal for employers, with online tracking & rehabilitation referral capabilities following feedback that there’s a demand for digital solutions. Speaking exclusively with Protection Reporter, Paula Coffey, Director of Claims, Rehabilitation & Medical Services at Unum UK, said it’s important that “we’re seen as not only trusted but also innovative. Therefore, we’ve spent the last twelve months piloting our online claims & rehabilitation capabilities for employers.
“Employers can submit claims and referrals to us online, and then track progress on a case-by-case basis. Chatting with line managers & HR departments, the majority said they struggle for time. Our dashboard lets you see how many claims have been submitted, and the next steps – removing administrative barriers,” she added.
Finally, RedArc has said bereavement support that solely offers counselling is falling short. The added-value service provider recognises that grief can be complicated, affecting every aspect of a person’s life – this can include work, sleep, relationships, and health.
Limited practical support for bereavement extends across both the group & individual markets. Last year, Adrian Matthews, UK Deputy General Manager at MetLife, told Protection Reporter “Insurers say they’re really sorry for your loss, here’s a cheque. What they don’t take into account is the stress it puts on the family.”
RedArc warns bereavement support that solely offers counselling is falling short
Overall, I’d say we’ve achieved all the ‘P’s this year, but don’t forget, these aren’t ‘one-and-done’ goals. Here’s to yet more breakthrough integrations, upgraded offerings, and improved underwriting in 2025.
