Swiss Life (UK) plc has confirmed its position as an innovator in the group risk market with the l...
Swiss Life (UK) plc has confirmed its position as an innovator in the group risk market with the launch of Matrix Income Protection. This comes hot on the heels of being voted Group Risk Provider of the Year 2003.
Group protection in general provides a huge selling opportunity for advisers – particularly with big ticket pensions business getting harder and harder to come by. And income protection is no exception. With only 11% of the working population covered by income protection there is an untapped market waiting for advisers to develop. However, where group income protection has faltered, is in its inability to fit the changing world of today's employers. Developed in a white collar world of 'jobs for life' and providing benefits without looking carefully at strategic fit or cost/benefit, group income protection is in need of a shake up in order to grow the market.
We believe Matrix Income Protection will stimulate the market, providing cover for previously uninsurable industries, giving employers a variety of options on cost and extent of cover. There should hopefully be an option to suit every employment scenario.
Matrix provides all of us who are involved in group protection with a fantastic opportunity to grow what up until now has been a largely static market.
The various options under the Matrix Income Protection contract mean it can be adapted to suit different budgets and different company cultures - it's extremely flexible. To give you an idea on cost, some of the options available under Matrix Income Protection represent a 50% saving on standard group income protection rates.
Under our standard group income protection contract, claims are assessed on whether or not an employee is able to return to their 'own occupation'. But under Matrix Income Protection we offer employers the option of selecting stricter criteria – for example, paying the employee an income only where he or she is unable to perform certain physical activities or where the employee has suffered some form of mental impairment. Even where 'own occupation' is selected as the criterion, we can cover more employees than before simply through placing a time limit on the duration of any claim.
In essence it means we can now provide cover to employees who may previously have been ruled ineligible, something we view as a major step forward. Better to have some cover than no cover at all.
The application procedure is no more lengthy or complicated than when applying for our standard group income protection contract. Normally, it's simply a case of completing a proposal form, providing details of the employees to be covered and paying a deposit.
Overall there'll be more new business for everyone because we're expanding the entire group income protection market. We're doing this by extending cover to employees that previously haven't had it and to companies that previously couldn't afford it.
We also believe that we'll be successful in retaining a higher proportion of our existing business simply because Matrix Income Protection provides those employers for whom affordability is a major issue with an alternative to outright cancellation.
‘Important to have an anchor’
Report to be written by TPR
Lack of innovation for solutions
Some 2,000 consumers affected