Writing Group Risk business in 2019 James Lawley | Business Development Consultant 15 th January 2019 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 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. 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.
Learning objectives 01 03 02 To understand the The difference that How and when to use Group Risk market Employee Assistance consultancy support opportunity and how to Programmes and Added and market insight to use Partnership Terms to Value Services can make initiate conversations your advantage to a proposition with your clients
What are the typical Group Risk products offered in the market?
Income Protection Provides a financial benefit (percentage of salary) if an employee is unable to work through sickness or injury. ‘The top 3 causes for Unum Income Protection claims are cancer, mental ill health and musculoskeletal conditions 1 ’ Group Income Protection 1. For Unum GIP claims admitted between 1 st August 2017 and 31 st May 2018, 27% were for cancer, 17% for mental ill health and 10% for musculoskeletal conditions
Critical Illness Cover Provides employees with a lump sum payment if they are diagnosed with a listed medical condition or undergo a listed surgical procedure. ‘ 188,000 hospital visits are attributed to heart attacks in the UK each year 1 ’ ‘ 1 in 4 hospital visits attributed to strokes happen to people of working age 2 ’ Critical Illness 1. https://www.macmillan.org.uk/about-us/what-we-do/how-we-work/work-and-cancer 2. https://www.bhf.org.uk/for-professionals/press-centre/facts-and-figures
Life Insurance Provides a lump sum benefit (either a flat sum or multiple of salary) to beneficiaries or dependents after the death of an employee. ‘ £8,905 is the estimated cost of death in the UK 1 . A cost which has risen faster than inflation for the past 13 years 2 . Life Cover 1. Sunlife Cost of Dying Report (2017) 2. ONS Deaths registered in England and Wales (2017)
Corporate Dental Provides a financial benefit towards the cost of dental treatment ranging from routine check-ups and x-rays to root canal treatment and crowns. ‘ 415,000 people miss at least one day of work each year due to problems with oral health 1 . Dental Cover 1. http://www.bsdht.org.uk/news-1/work-missed-due-to-oral-health-problems-costs- the-uk-economy-more-than-36-million-each-year-1
What are the opportunities open to Advisers in Group Risk?
Assessing the market opportunity of those off with long-term 40 % illness have had to apply for 5 million businesses benefits or government support 2 have fewer than 10 employees 1 of small businesses are of all Unum quotes considering rolling out 76 % 30 % are for employers with Group Risk / Employee under 50 employees 4 Benefit products 3 1. House of Commons: Business Statistics (2018) 2. EmployeeBenefits.co.uk (2017) 3. Employee Benefits Trends Study (2017) 4. Unum Internal Data (2017)
Making the most of Partnership terms 1 Pooled arrangements for schemes with 3 – 100 employees 2 Whitewashing of medical loadings (up to Free Cover Level) Increased Free Cover Levels for: 3 Income Protection ( £65k ) and Life Insurance ( £600k ) 4 3 year rate guarantees 5 Joint client visits
Individual market vs Group market Scenario Solution An employee is declined cover or By offering a Group Risk product and charged an increased premium for Partnership Terms you may be able Relevant Life or Individual Income to offer a solution that has: Protection because of either: • Increased Free Cover Levels • Previous medical conditions • No medical underwriting requirements • Medical underwriting • Whitewashed medical loadings • Medical loadings
Talking about ‘Added value services’ Employee Assistance Cognitive Vocational Programmes Behavioural Therapy Rehabilitation Early intervention helplines Corporate partnerships
Utilising Consultancy support Experienced Group Joint client Risk Consultants visits and support Data driven Telesales market insight capacity
Working in tandem with market insight Existing block analysis Mapping Benchmarking Propensity to buy Prioritised prospect lists, Potential target The comparative cover Prioritised prospect based on actual buying clients in your offered by a company’s lists, based on actual behaviours vicinity peer group buying behaviours
Potential conversation starters What are the reasons behind your What processes do you have in current sickness absence? place if an employee goes off sick? What impact does sickness Have you put in any steps to try absence have on your business? and address the absence? Employer How do you prevent employee Do you know about Employee sickness absence? Assistance Programmes?
Learning outcomes 01 03 02 Now is a better time Added Value Services and Market Insight can than ever for Advisers to Employee Assistance provide you with an talk to SMEs about Programmes are inroad into your existing Group Risk products – potentially as important block and help to initiate and Partnership Terms to the employer as the conversations with new are there to support you product itself and current clients
Questions? James Lawley Connect with me on LinkedIn General questions: James.Lawley @unum.co.uk networks@unum.co.uk 07867 142863
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