Bulletin 20, 2006
Round up
0 - no life insurance rate changes were announced this week.
1 - the number of new Pension Term Assurance launches confirmed this week with Standard Life providing a product for Barclays.
1 - the number of bulletin recipients confused by last week's email being sent on a Thursday who woke up the next day thinking it was Saturday!
3.1 - the % of women who took at least one day off work sick in the previous week, compared to 2.4% of men.
12 - the number of health events this month, including diabetes week and men's health week
13,000 - the amount in £'s reported that Dad's save families each year by taking on jobs around the home, say Friends Provident leading up to Fathers Day, highlighting the importance of having suitable life insurance and protection cover in place.
Diabetes a 'serious pregnancy risk'
Both type 1 and type 2 diabetes sharply raise the risk of pregnancy complications, according to research. UK experts say diabetic women should be offered specialist foetal heart scans because of the increased risk of serious abnormalities and infant death.
The Post Office and PPI
One word sprang to mind when we heard about the launch of a new PPI product this week - Why?
Why launch a product just three months after the OFT launched an investigation into products of this kind, and why use this very investigation as a reason for launching an average policy with average premiums and average benefits under the banner of protecting your lifestyle and treating customers fairly. Quite bizarre.
Actually, we all know why of course, its because PPI can be one of the most profitable insurance products around. The well documented reality is that it quite often isn't very good for the poor consumer who pays for it though.
That said, a product itself cannot treat customers unfairly, only the sales process and the information made available can do that. If you tell a customer a product's limitations there is no wrong doing. It is when customers aren't given the full picture, or worse are misled into thinking they have been told everything there is to know, where real detriment is caused.
Quoting directly from the press release, managing director Alan Cook said: 'There are widespread concerns that people taking out payment protection insurance are being unfairly treated. They’re often charged a high premium then aren’t able to claim because of the small print. We want to change that. We are challenging the market with this new standalone product, which offers cover where others don’t such as for back and stress-related conditions, and payment for the whole period you’re off work.'
Payment for the 'whole period you're off work' - funny that, because the policy details state 'Covers income for up to 12 months if unable to work because of accident, sickness or unemployment.'
Comments of the week
'The Post Office policy includes a 30 day cancellation clause, compared to a norm of 90-180 days, or in some cases five years. This represents poor value for consumers as they may not be able to find alternative cover, particularly if they have since developed a medical condition. Whereas products such as Income Protection cannot be cancelled or amended by the insurer at all'
Simon Burgess
Managing Director, britishinsurance.com
'Is there such a thing as ordinary life insurance rates any more? Every single customer I've dealt with today has been rated for their life insurance needs.'
Andrew Parker, LifeSearch support team leader.
Hero of the week
The excellent administration staff who helped a client from finally obtain cover after two years of trying. The client's circumstances were particularly complex and the life insurance offices in question didn't always make it easy. Yet our staff cared enough about the client and their life insurance needs to keep working away for two years, even though the commission earned was just £237.
A charity we are not, and we make no secret of our desire to grow profitably through putting the consumer first. Along with benefits such as independent advice and Red ARC we believe it is this level of service and dedication that will best fill the UK life insurance and protection gap.
Back to Life Insurance Bulletins
