Professional Adviser's protection detective Kevin Carr delivers his verdict on five key developments in the protection space from the last month or so
Flick of the finger
VitalityLife has introduced finger-prick blood testing to improve the protection underwriting process. This allows test results to be available in seconds, rather than the four or five days required for standard tests. The procedure avoids the use of needles and tests can be taken in the convenience of people's home. It also minimises the risk of spoilt samples and retests as blood does not need to be transported to a laboratory.
Darren Lee, director of underwriting and claims at VitalityLife, said: "The next stage in our mission to improve the customer experience around medical underwriting is in the automation of underwriting decisions where a screening examination has been undertaken. Our aim is for the underwriting decision to be available within seconds of the nurse submitting the client's results and we are on course to launch this next phase later this year."
Verdict: Promising lead
Automatic for the people
Ellipse and employee benefits consultant Johnson Fleming have launched a digital group risk quotation system targeting auto-enrolment clients with protection. The system automatically generates client-specific quotes for group life cover, critical illness or income protection based on the auto-enrolment membership data already held by Johnson Fleming, with no additional manual input required.
John Ritchie, CEO of Ellipse said: "Auto-enrolment presents opportunities and challenges for advisers. While the thousands of small employers being introduced to workplace benefits for the first time present obvious opportunities, digital processes are essential for advisers to service this segment cost-effectively."
Verdict: Promising lead
All shook up
Gen Re has launched a Protection Pulse report, analysing sales over 2015. At first glance it looks like protection sales are down in all areas apart from income protection. But if you take out sales through the bank assurance sector, which almost halved in 2015, it is a much more positive read and the total market is up 7%. Mortality business is up 4.5%, guaranteed whole of life cover is up 17%, accelerated critical illness is up 5% and income protection is up by a whopping 26%.
Verdict: Promising lead
Good to talk
Aegon has launched a health and wellbeing support service for protection customers. The 24-hour service is available for the life of the policy, not just when a claim is made, and offers a range of support including bereavement counselling and help with concerns about health, work-related stress, marital and family issues.
Dougy Grant, Aegon UK's protection director, said: "While financial pay-outs are essential to help families make ends meet, they are often only part of the story. The need for practical and emotional support can be a more immediate priority."
Verdict: Promising lead
Record year for pay-outs
Almost £10m is paid out every day to help customers cope with the financial difficulties that can arise as a result of a death, serious illness or injury. Protection insurance includes products such as life insurance, critical illness cover and income protection, which help families cope with financial strains following a life-changing event. ABI figures for 2015 showed a record £3.6bn was paid out last year in protection insurance claims, with 97.2% of all protection claims paid overall.
Verdict: Promising lead
