Bulletin 19, 2006
Round up
5 - the number of life insurance rate changes announced in the hyperactive world of life insurance and protection pricing. Bright Grey, Legal & General, Norwich Union, Scottish Equitable and Scottish Widows all thought that changing prices for life assurance would change their world!
100 - the percentage of Canada Life's group income protection clients who will now receive access to Best Doctors.
36 million - the number of UK adults admitting they don't understand the different types of financial advice available, says IFAP.
3.6 billion - The price in £'s Resolution Plc are proposing to pay for the UK and offshore life insurance business of Abbey National, marking the entry of Resolution into the life insurance new business market.
The Tesco contradiction
The words pot, kettle and black sprang to mind when reading a Tesco car insurance press release.
Tesco were slamming their competitors for misleading consumers by hiding information in the small print on policies, or not fully informing customers what they are getting. Sound familiar? Tesco believes their customers should have "both a choice and the knowledge that the service will deliver when they need it." LifeSearch wonders if Tesco truly believes they apply these principles to their life insurance and protection sales processes as well?
Comment of the week
"As Critical Illness can be complex, firms sometimes have trouble getting customers to understand what they are buying. This lack of understanding makes it difficult for customers to make a judgement about whether Critical Illness - rather than a payment or income protection policy - is the right product to meet their life assurance and protection needs. The high level of claims rejected because of customers failing to fully disclose their personal circumstances shows just how important it is for firms to ensure that consumers know what information they have to provide."
Sarah Wilson
FSA Director, Retail Firms
Heroes of the week
Professor Marius Barnard
Professor Barnard - the inventor of Critical Illness cover and Johnny Timpson of Scottish Widows were on a train, travelling to talk at a life insurance and protection workshop on Critical Illness and Income Protection needs. In the middle of the countryside the train pulled to a stop and the guard asked for any passenger with medical knowledge to come forward, as a fellow passenger had collapsed with a suspected heart attack. The Professor recovered the man and they got him off at the next station. A well deserved hero!
Bright Grey
For their informative and clear communication on life insurance and protection issues through their new Brighter Outlook newsletter. But if Bright Grey pride themselves on differentiating and adding value, why lead the newsletter on cutting prices for life insurance with differentiating topics such as "financial support is valuable, emotional support can be invaluable" coming much further down the list?
