- Austerity. The ongoing withdrawal of state support presents an opportunity for the protection market. Rumblings in the market about the potential future widespread use of so-called Protection Statements could help to greatly raise individual awareness of how little the state will provide in the event of illness or injury.
- Regulation and legislation. Imminent changes such as the introduction next year of General Data Protection Regulation (GDPR) and gender pay gap reporting are all helping to drive cultural change in businesses. Added to that, Brexit is expected to make finding and keeping the right people for the job even harder. In short, retention programmes are going to be key and benefits such as group income protection form a key part of that.
- Technology. James Tait of Pacific Life Re, said in his opening address at Protection Review that the next 12 months are going to be very important for comparison sites, such as UnderwriteMe. “Technology enables propositions that start with the consumer in mind,” he added. “Robo-advice presents the industry with an opportunity to engage with people who are not currently getting involved with traditional channels.”
- Personalisation. Personalisation represents a significant theme that, underpinned by technology, will influence the future of the industry according to commentators. Mr Tait highlighted Royal London’s diabetes cover and VitalityLife’s Wellness Optimiser as innovative attempts to “personalise” protection. He added that new brands getting involved in the market suggested there was much scope and appetite for growth, for example the recently announced life insurance partnership between BGL Group and Virgin Money, plus start-up company Gryphon Group Holdings raising £180m to design and build an “insurance challenger”.
2. Understand & better communicate what it means to be “impaired”
There’s a general understanding that work is good for us, so most of us will endeavor to work in some capacity even when faced with impairment.
The problem is that the nature of that work might change, and the salary accordingly, as we age and acquire more impairments. This needs to be better understood by providers and intermediaries then communicated to consumers.
Sammy Kornhauser of Disability Rights UK, speaking at Protection Review, said that 20 per cent of the UK population is currently declared as impaired.
Some 46 per cent of impaired individuals are in work “but they are less likely to be employed to work with able-bodied people,” he added.
The Seven Families project showed the positive impact of financial support on people’s lives, helping them get back on their feet and, in some cases, back to some kind of work and “normality”.
