How to write Group Risk business Unum Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England 983768.
Disclaimer Terms and conditions apply to all Unum products This presentation has been designed for an audience highlighted in this presentation and they may differ from with knowledge of financial products and nothing provider to provider and over time. from it should be used with customers as a sole basis for making decisions on selling products. The Unum is not authorised to give advice. The material presentation uses examples to demonstrate products contained in this presentation applies only to Unum and but these are for illustration purposes only. For its products. Whilst we have taken all reasonable steps to actual customer illustrations please contact your ensure that the information within this presentation is Group Risk provider or Unum Representative. accurate and up-to-date, we cannot accept liability for any error or omissions. Unum Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered and Head Office: Milton Court, Dorking, Surrey, RH4 3LZ. Registered in England company number 983768. 2
Agenda 01 Learning objectives An introduction to Employee Benefit (Group Risk) products 02 How Employee Benefits (Group Risk) can build your wider portfolio 03 04 Writing ‘New to Market’ business 05 Switching and transferring business Processes for new, existing and renewal business 06 3
Learning objectives 01 03 02 04 Understand what Recognise the Identify how ‘added Understand how Employee Benefits are in processes involved in value services’ form Employee Benefit the Group Risk context quoting and writing part of a broader products can and the types of new business and Employee Benefits form part of your products available wider portfolio switching existing offering policies 4
What are Employee Benefits? Employee Benefits (within the Group Risk context) is the umbrella term mainly used for three core products Income Life Critical Protection Insurance Illness Cover These are under a ‘group’ scheme but can be funded differently Employer Employee Combination of both 5
What is Income Protection? Provides a financial benefit and rehabilitation support if an employee is unable to work because of long term illness or injury. Benefits are normally based on an employee’s earnings with options available to meet the employer’s specific needs and budget. 6 Terms and conditions apply. Cover depends on policy.
What is Life Insurance? Provides a tax-free lump sum pay out to loved ones in the event of an untimely death. Life Insurance also gives family members much needed practical and emotional support during a very difficult time. Terms and conditions apply. Cover depends on policy. Based on our understanding of current UK tax legislation 7 and HMRC practice. Unum does not give advice. Please seek independent tax advice as appropriate.
What is Critical Illness cover? Provides employees with a tax-free lump sum after they, their spouse or partner (if covered) or children (up to the age of 18 or 21 if in full-time education) survive one of the defined medical conditions (such as stroke, heart attack or cancer) or undergo a surgical procedure covered under the policy and survives for 14 days. Terms and conditions apply. Cover depends on policy. Based on our understanding of current UK tax legislation 8 and HMRC practice. Unum does not give advice. Please seek independent tax advice as appropriate.
Opportunity for clients To offer clients access to To help existing clients with To develop relationships products in a growing potential cost savings with new clients or market Help your clients get the best industries products to suit their needs Group scheme have the potential to reach new private clients as well, to address their general insurance needs 9
Adviser opportunity To supplement existing To offer a broader To further contact with adviser revenue streams product portfolio existing clients Commission paid monthly or Cross-selling Auto-enrollment process annually, as long as the policy opportunities to starts April 2020 and this remains in force compliment is an additional existing policies opportunity to add Group Employee benefits as part of this programme 10
Market opportunity 98% 90% 59% Potential Potential 24m clients clients Full-time employees Group Life Group Income Group Critical coverage Protection coverage Illness coverage 11 Sources: ONS (January , 2019), Swiss RE Group Watch Report (2019)
Consultancy support Joint client visits and support, such as seminars, Chamber of Commerce support and breakfast meetings Data driven market insight capability, including propensity to buy modelling and management information on existing block Marketing and pitching materials, such as bespoke website copy, presentations and internal communications support 12
Writing Group Risk Business
What could you look for? Examples of the type of thing you could look for when transferring business include: Enhanced Non-Medical Employee Assistance Policy expiry Benefits Payable Programmes and their Limits (Free Cover Levels) dates (eg: State overall participation as some providers may Pension age) restrict benefits 14 14 Contact your Consultant for additional support
Quoting ‘New to Market’ business To produce an initial Group Risk quote the following is required: ✓ ✓ Company name and Companies work locations (if there are House registration number multiple sites) of employees ✓ ✓ Names and/or gender and Details of any long term dates of birth of employees absentees over 3 months ✓ Occupation and salary (including any dividends, bonuses and P11D benefits) Please note that details for long term absentees are required for both Group Life and Group Income Protection policies Broker-own policies are often a good way of endorsing employee benefits 15 15
Eligibility of policy members Not all employees at a business have to be insured, however ‘categories’ must apply. All employees detailed within the category must be included within the policy. Example categories might include: ✓ Working Directors ✓ Senior Management ✓ Management ✓ Team managers / leaders ✓ Full-time employees Criteria can be applied such as employee eligibility after a certain period of employment (eg: 6 months), day one entry or to cover TUPE’d staff* *Eligibility can be defined and changed at each policy anniversary renewal 16
Switching to another provider What’s required? Direct Debit Mandate for Policy The quote illustration 1 2 3 payments and payment Renewal date number being accepted terms (Monthly) Please note that for Group Life policies, trusts switching to a provider’s Master / Registered trust programme also require a newly completed form. Group Income Protection: Claims history (three years) is required. If any members have any medical loadings or policy restrictions (eg: benefit levels) then we would require this for quoting purposes. Policies can still ‘switch’ if there is an existing claimant but the existing claim remains with the provider until the claimant has returned to normal working duties for 30 days. The employee then joins the new provider’s policy. 17
New and Switch business process New business Switch business ✓ ✓ Quote acceptance number Any current underwriting decisions on any individual members ✓ Confirmation of Long term ✓ absentees (if any) Number of changes to the original data provided (staff leavers / joiners or salary increases) ✓ Confirmation of on-risk or renewal dates ✓ Signed Direct Debit Mandate ✓ ✓ Payment frequency and Method Master Trust documents (Group Life policies only) (Direct Debit Mandate / Monthly) 18
Transferring business from other Advisers Advisers quoting the scheme but yet to service the broker for the company ✓ Illustration provided as normal Advisers that are asked to become the servicing broker: ✓ ‘A Letter of Authority’ is required from the company confirming the policy details (if the existing provider holds the scheme) For both situations, the same business process is always followed in all cases 19
Existing business / renewals process 01. 02. 03. 04. Before the renewal is This pack will If the policy is within a At the end of the rate due to complete, a full contain a request rate guarantee period a guarantee period, the rate renewal pack will be for up-to-date new invoice will be issued is re-tested and the issued employee data to the client scheme is re-costed for a further 2-3 year term 20
Value added services
Added Value Services Charity Vocational Cognitive Partnerships Rehabilitation Behavioural Services Therapy (CBT) Employee Mental Remote GPs , Early Assistance Health physio, mental intervention Programme First Aid health support helpline Please note: Not all additional services are listed here and some are available at an additional cost. For a 22 full list please contact your Unum Consultant
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