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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.

How to write Group Risk business

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This presentation has been designed for an audience with knowledge of financial products and nothing from it should be used with customers as a sole basis for making decisions on selling products. The presentation uses examples to demonstrate products but these are for illustration purposes only. For actual customer illustrations please contact your Group Risk provider or Unum Representative.

Disclaimer

Terms and conditions apply to all Unum products highlighted in this presentation and they may differ from provider to provider and over time. Unum is not authorised to give advice. The material contained in this presentation applies only to Unum and its products. Whilst we have taken all reasonable steps to ensure that the information within this presentation is 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.

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Agenda

01 02 03 04 05 06 Learning objectives An introduction to Employee Benefit (Group Risk) products Writing ‘New to Market’ business Switching and transferring business Processes for new, existing and renewal business How Employee Benefits (Group Risk) can build your wider portfolio

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Learning objectives

01 02 03

Understand what Employee Benefits are in the Group Risk context and the types of products available Recognise the processes involved in quoting and writing new business and switching existing policies Identify how ‘added value services’ form part of a broader Employee Benefits

• ffering

Understand how Employee Benefit products can form part of your wider portfolio

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What are Employee Benefits?

Employee Benefits (within the Group Risk context) is the umbrella term mainly used for three core products These are under a ‘group’ scheme but can be funded differently Employer Employee Combination of both Income Protection Life Insurance Critical Illness Cover

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Provides a financial benefit and rehabilitation support if an employee is unable to work because

• f 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.

What is Income Protection?

Terms and conditions apply. Cover depends on policy.

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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.

What is Life Insurance?

Terms and conditions apply. Cover depends on policy. Based on our understanding of current UK tax legislation and HMRC practice. Unum does not give advice. Please seek independent tax advice as appropriate.

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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.

What is Critical Illness cover?

Terms and conditions apply. Cover depends on policy. Based on our understanding of current UK tax legislation and HMRC practice. Unum does not give advice. Please seek independent tax advice as appropriate.

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Opportunity for clients

To develop relationships with new clients or industries Group scheme have the potential to reach new private clients as well, to address their general insurance needs To help existing clients with potential cost savings Help your clients get the best products to suit their needs To offer clients access to products in a growing market

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Adviser opportunity

To offer a broader product portfolio Cross-selling

• pportunities to

compliment existing policies To further contact with existing clients Auto-enrollment process starts April 2020 and this is an additional

• pportunity to add Group

Employee benefits as part

• f this programme

To supplement existing adviser revenue streams Commission paid monthly or annually, as long as the policy remains in force

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Market opportunity

Group Income Protection coverage Group Life coverage Group Critical Illness coverage

90% 59% 98%

Potential clients Potential clients Full-time employees

24m

Sources: ONS (January , 2019), Swiss RE Group Watch Report (2019)

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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

Writing Group Risk Business

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Examples of the type of thing you could look for when transferring business include:

What could you look for?

Enhanced Non-Medical Limits (Free Cover Levels) as some providers may restrict benefits Employee Assistance Programmes and their

• verall participation

Policy expiry dates (eg: State Pension age) Benefits Payable Contact your Consultant for additional support

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To produce an initial Group Risk quote the following is required:

Quoting ‘New to Market’ business

✓ Company name and Companies House registration number ✓ Names and/or gender and dates of birth of employees ✓ Occupation and salary (including any dividends, bonuses and P11D benefits) ✓ work locations (if there are multiple sites) of employees ✓ Details of any long term absentees over 3 months 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

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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

• f employment (eg: 6 months), day one entry or to cover TUPE’d staff*

*Eligibility can be defined and changed at each policy anniversary renewal

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Switching to another provider

Direct Debit Mandate for payments and payment terms (Monthly)

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Policy Renewal date

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The quote illustration number being accepted

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What’s required?

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.

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New and Switch business process

New business

✓ Quote acceptance number ✓ Confirmation of Long term absentees (if any) ✓ Confirmation of on-risk or renewal dates ✓ Payment frequency and Method (Direct Debit Mandate / Monthly) ✓ Any current underwriting decisions on any individual members ✓ Number of changes to the original data provided (staff leavers / joiners or salary increases) ✓ Signed Direct Debit Mandate ✓ Master Trust documents (Group Life policies only)

Switch business

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Advisers quoting the scheme but yet to service the broker for the company ✓ Illustration provided as normal

Transferring business from other Advisers

For both situations, the same business process is always followed in all cases 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)

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Existing business / renewals process

Before the renewal is due to complete, a full renewal pack will be issued

01.

This pack will contain a request for up-to-date employee data

02.

If the policy is within a rate guarantee period a new invoice will be issued to the client

03.

At the end of the rate guarantee period, the rate is re-tested and the scheme is re-costed for a further 2-3 year term

04.

Value added services

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Added Value Services

Please note: Not all additional services are listed here and some are available at an additional cost. For a full list please contact your Unum Consultant

Cognitive Behavioural Therapy (CBT) Early intervention helpline Employee Assistance Programme Vocational Rehabilitation Services Mental Health First Aid Charity Partnerships Remote GPs , physio, mental health support

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Employee Assistance Programme

Confidential Employee and Employer Assistance Programmes (EAP) often provide support 24/7, 365 days a year offering: ✓ Toolkits covering a range of issues including parenting, work matters, debt management and healthy eating ✓ Child and elder care matched referral services ✓ Provision of EAP service for family members and dependants ✓ Downloadable mobile app Employer specific: ✓ Legal information across a range of issues available by phone or online

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Cancer Support Services

Access to cancer specialists Second opinion review diagnosis and pathology reviews Coordination of care, and explanation of treatments Bespoke support plans Dedicated Case Managers

Examples

• f support

Not all of the services listed above are standard as part of a Cancer Support Service. Full

• ffering depends on provider and policy. Some services may be an additional cost.

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Learning outcomes

01

Employee benefits in the Group Risk context is the name traditionally given to Group Income Protection, Life Insurance and Critical Illness cover

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The processes for switching business from other providers and transferring business from other advisers is simple and Unum’s consultants can support with this

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Added value services vary from provider to provider and are often overlooked, but these play a key role in a workplace wellbeing and employee benefits offering

04

Employee Benefits can fit into existing adviser portfolios by potentially offering an alternative option to traditional adviser products

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Thank you for your time

Full product details available at: unum.co.uk