ProtectionSep 10 2018

Zurich brings one-stop protection platform to market

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Zurich brings one-stop protection platform to market

Zurich has overhauled its insurance service proposition and created a life protection platform that promises to give consumers and advisers choice, flexibility and ease of use.

The platform, which Peter Hamilton, head of market management for Zurich, has likened to "completely re-laying the foundations", has replaced five legacy systems with a single, streamlined one. 

The platform will enable clients to get instant cover online.

As well as real time updates on applications and immediate alerts from third parties, such as GPs, electronic signatures will apply to access under the Access to Medical Records Act. Online trusts will also be signature free. 

Alongside this, Zurich has also created products to sit on the platform - income protection and multi-fracture cover - as well as making improvements to its life and critical illness policies.

Mr Hamilton said the new propositions and improved cover meant policies could be better tailored to the needs and budgets of individual consumers.

"Previously, consumers had the choice between all-encompassing cover at a higher premium, or a cheap, basic product chosen on price. 

"With the platform technology underpinning these propositions, consumers and advisers can now make upgrades to people's income protection products or to remove features where needed, and provide the flexibility people need", he said.

The income protection and critical illness policies are available in two levels. ‘Core’ will provide an entry-level but extensive breadth of cover, and ‘Select’ will give more comprehensive, feature-rich protection.

It will appeal to those who value the option to flex up or down, depending on where they’re at in their lives.  Emma Thomson

The platform's technological capability will mean customers can move between the two levels as their personal circumstances change. 

Mr Hamilton said this meant the adviser's job would also become easier, allowing them to carry out regular reviews with their protection clients, rather than just sell a policy and leave it until the consumer makes a claim.

He said: "Now, the adviser can discuss regularly with the client whether they need to change the sum assured, improve policy terms, add children's benefit - or take it away, upgrade or reduce the cover, add fracture cover or change indexation."

All this, he added, would make protection products easier to recommend, easier to apply for and potentially more time-saving for advisers, while improving the choice available for consumers at different stages of their lives.

According to Mr Hamilton, the platform and products were both designed following consultations with advisers.

He stated: "In a world that demands 24/7 access, Zurich’s Life Protection Platform is about offering advisers and customers choice and convenience - both around how and when they choose to manage their policies and the type of cover available.

"The range of conditions covered, and new features like our multi-fracture cover and optional children’s benefit, reflect current lifestyles and the fact our lives and those of our families constantly change."

But he intimated there was "much more to come", stressing the new platform's capability would enable the company to "evolve and develop" over time.

Zurich is phasing in the launch of the platform to advisers across the entire market throughout September, but early adopters of the service have given it an initial thumbs-up.

Emma Thomson, life office relationship director for Lifesearch, said: "Zurich’s new range is great news for customers. It will appeal to those who value the option to flex up or down, depending on where they’re at in their lives.  

"Specialist services such as in-house rehabilitation for income protection customers will also provide reassurance that professional help is at hand when they need it most."

The range of conditions covered reflect current lifestyles and the fact our lives and those of our families constantly change. Peter Hamilton

Jon Nixon, head of protection for The Buy to Let Business, called it a "breath of fresh air" in an ever-changing market, while advisers working for Safeguard insurance services claimed it was "easy to use". 

According to Murray Baker, spokesman for Safeguard: "The back office staff love it as it gives total clarity and as the portal is self-serve, it means we don’t have to waste time hanging on the phone.”

The launch of the platform came as the Financial Services Consumer Panel (FSCP) issued a discussion paper, Understanding the Protection Gap, in which it found the protection market was "not producing good outcomes for consumers".

The paper called for simpler, more flexible products that were easier to understand, and strongly recommended more conditions to be covered, such as mental ill health. Coincidentally, Zurich's new-look CI cover includes mental illness within its 100 CI conditions.

The FSCP also suggested a greater attention to fintech developments could "help with providing further innovation, especially in the underwriting process".

Alan Lakey, founder of CIExpert, said he was impressed by the two policies which offer flexibility to match individual needs, and particularly the select version which will enable Zurich to "compete strongly with other top quality policies".

Mr Lakey said: "For many years Zurich has been content to offer a reasonably costed but average critical illness plan which relied as much on reputation and underwriting as it did the quality of its definitions.

"The new contracts confirm that Zurich is emerging as a serious player in both the premium-based and the quality led determinations."

simoney.kyriakou@ft.com