PARADIGM PROTECTION NEWSLETTER AUTUMN 2024 www.paradigm.co.uk/protection
CONTENTS 4 Protection Market Update Paradigm Protect Mike Allison 10 UnderwriteMe Income Protection Week 14 Zurich Talkin' about their generation 16 Paradigm Understanding the impact of Alzheimer's on Mental Health Riona Mulherin 20 LV= Using claims to empower clients’ decisions 22 Paradigm Black History Month Melissa Lackenby
Guardian Financial Services Limited is an appointed representative of Scottish Friendly Assurance Society Limited. All products are provided by Scottish Friendly. Guardian Financial Services Limited is an appointed representative of Scottish Friendly Assurance Society Limited which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority. Registered office: Scottish Friendly House, 16 Blythswood Square, Glasgow G2 4HJ. Registration number 110002. Guardian Financial Services Limited is registered in England and Wales under number 11115769. Registered office: 11 Strand, London WC2N 5HR. GFS A 1010 Read our 2023 Claims Report to find out more. guardian1821.co.uk/claims Now there’s a claims stat you don’t see every day. OF LIFE CLAIMS PAID 100%
The recent announcement of the FCA Market Study in to the Protection Market MS24/1.1 is possibly the most important foray in to Protection distribution since GI Regulation was brought to Market in January 2005. Whilst it is only a review at this stage, it is hoped that some of the poor practices still exhibited in relation to the value to the end consumer will be identified and addressed. Certainly the scope of the paper outlined in the Terms of Reference publication is an encouraging start and, combined with Consumer Duty, could start to right the wrongs that still exist in relation to consumer value. The study will focus on four main areas : • Consumer needs, engagement and understanding: the benefits and the value of pure protection products to clients, the nature and complexity of products and whether they are presented in a way that is understandable to clients, how clients make choices, the benefits and the value of services provided by intermediaries, how well clients understand how intermediaries are remunerated, how engaged clients are with pure protection products they have and how cross-selling occurs. • Competitive constraints on insurers and intermediaries: the importance of intermediaries as a route to market and the value of services they provide to insurers, the relative bargaining power between intermediaries and insurers, the nature of competition between insurers for distribution channels, the broader macroeconomic environment and its impact on how insurers and intermediaries compete and the nature of competition between insurers and between intermediaries. • Commission incentives and potential conflicts of interest: the size and structure of commissions in the pure Mike Allison Director of Protection Paradigm Protect Protection Market Update 04 AUTUMN PROTECT NEWSLETTER Welcome to the latest edition of the Paradigm Protect Newsletter! Musings on 40 Years in the Industry and Protection Regulation - MS24/1.1 In September this year I celebrated my 40th year in Financial Services and I got time to reflect on the huge changes that have occurred in that time. I could write a book on the subject, but won’t in this introduction – I promise!! What I would say is that the most startling changes have come in the areas of regulation and professionalism and therefore the real value of advice across the whole spectrum of financial services products via quality advisers. What is something to bemoan in that time is the number of Providers operating in all spaces, potentially narrowing choice for consumers. The demise of Home Service in that time, brought about for a number of reasons was one of many factors that led to under insurance and the evolution of the much examined and talked about “Protection Gap”. Nevertheless, there is much to do to make the industry better and to finally focus attention on the consumer as the most important “cog” in the distribution wheel is something that has been missing for some time in my opinion.
05 AUTUMN PROTECT NEWSLETTER Continued on next page... protection market, the incentives that commissions create, and the effectiveness of regulation and features of commission schemes such as clawback in mitigating incentives and conflicts of interest. • Firms’ behaviour and practices: how firms’ incentives impact their conduct in relation to products, the market and their treatment of clients. Most of the areas outlined will cover the manufacturing and the distribution side, including pricing and access to products via Intermediaries. In terms of access to products for intermediaries, whilst I mentioned earlier that the number of Insurers manufacturing Protection products has declined, we are still seeing innovation in differential product availability in a number of areas, especially when it comes to details around how certain Insurers view and price for risk. Vitality recently produced their 2024 claims and what stood out for me, it was similar to that of many other Providers who similarly produce their 2023 Stats. What did stand out for me in that document was the fact that, in 1 in 7 cases, Serious Illness paid out where a normal enhanced Critical Illness Product would not. Similarly, 1 in 13 claims paid again where a previous other Serious Illness payment had already been made on the plan Whilst their product has both fans and detractors in the Intermediary space, the fact that all of those operating in a Whole of Market space have the ability to advise on that plan is testament to innovation and differences in what we witness in today’s market, compared to those operating limited panels. Similarly some Providers will offer terms on a particular illness where some will implement exclusions on payouts on “high profile” illnesses like MND. Such differentials do call for better education of advisers and with the added value of using technology such as Underwrite Me, Protection Guru and CI Expert to support them in finding the right solution for the client, just as it is used in the Mortgage market to find the right product for the client from hundreds of Lenders, there are little excuses in normal market distribution to work with anything but a Whole of Market panel. Not to have a full range of products in the toolbag is like playing a Championship Golf Course with half a set of clubs, and expecting the same result as someone with all of them! Although losing some Providers is, in my view restricting, it can and has created innovation for others and I believe operating a Whole of Market principle like Paradigm do is as important now as ever. Artificial Intelligence describes a Whole of Market approach as “Whole of Market involves financial advisors offering products from the entire market, without being restricted to certain providers or products. They act independently, reviewing all available financial products and providers to offer the best solutions for their clients' specific needs." When asked which is better, AI tells us “For clients who prioritise choice, independence, and bespoke financial solutions, the whole of market approach offers superior flexibility and impartiality." We have also seen in recent weeks that the regulator is starting in earnest it’s review of Consumer Duty implementation especially focused on Fair Value. Firms are being asked to continue to assess whether they are providing consistent fair value to their pure protection customers now. When conducting this assessment, firms will need to demonstrate that they are providing fair value for customers and that the price customers pay for products is reasonable compared to the overall value they receive. Throughout this assessment, it is essential that firms:
06 AUTUMN PROTECT NEWSLETTER 1. Look beyond the specific point in time when a product review is conducted: With pure protection policies being longterm products, firms will need to ensure they provide fair value over the entire period rather than at one moment in time. 2. Utilise a range of key data points to continuously monitor whether customers are achieving the expected good outcomes: To have an accurate, wellrounded picture of whether they are offering fair value, firms should look at a variety of data points, including claims rates or product usage and cost; rejected claims rates and the reasons for these rejections; customer journey drop-off rates; and customer sentiment analysis. Ultimately, firms should use these data points to evidence that customers are receiving good, fair service and that the product's pricing remains consistent with the initial analysis used to determine its fair value, as well as its alignment with the associated costs and risks. 3. Consider the product lifecycle across the distribution chain: As third parties are often used to either manufacture or distribute products, insurers will need to ensure that key data points provided by third parties are of sufficient quality to enable decision making. Equally, firms will need to be open to sharing information that is required by third parties to enable assessments of good customer outcomes. Firms should focus on embedding the governance and oversight of these metrics and the ongoing monitoring into business-asusual processes and forums. This will allow continued identification of any potential areas of concern and drive any required actions. The FCA's 2023 introduction of Consumer Duty has had a groundbreaking impact on the financial services industry and has truly shown that firms now have nowhere to hide when it comes to providing fair value for customers. This is only the first stage – firms should act now to avoid being caught out later. Market Focus Income Protection Sales forge ahead again The number of protection policies sold in 2024 has increased by 1,303 from the same period in 2023, according to Gen Re’s Protection Pulse update. Protection sales hit 492,428 in Q2 2024 compared to 491,125 in Q2 2023. However, sales were down from 510,141 in 2024 when there were was a decline of around 40,000 protection policies sold compared to Q1 2023. There was also a decline in premiums in 2024, on an annual premium equivalent (APE) basis, as premiums decreased by £13 million to £384m in the first half of 2024. Compared to £397m in the same period in 2023, representing a 3.3% decline. Meanwhile, premiums increased for income protection by 8%. Whilst the market for Protection in general in H1 seemed to be somewhat flat again, there were brighter highlights yet again in the area of Income Protection (IP). Gen Re statistics highlight a positive trend for the IP market, with an encouraging growth of 8%, perhaps indicating a greater focus on the product by advisers and CONSUMERS alike with the latter keen on securing their income against unforeseen circumstances, which is a positive sign for both the industry and policyholders. Healthcare The private healthcare market in the UK in 2024 is experiencing notable growth, driven by increasing pressures on the NHS. The combination of long waiting times, workforce shortages, and financial constraints within the NHS has contributed to a surge in demand for private healthcare services. Paradigm Protect is experiencing significant growth in the Sector with more and more firms wanting to access the growing market. Already Paradigm have written significantly more individual policies than we did in the whole of 2023 by some margin.
07 SUMMER PROTECT NEWSLETTER Continued on next page... We all possess anecdotal evidence but the real reason for the rise is : • NHS Waiting Times: With record-high waiting lists for routine procedures, diagnostics, and specialist consultations, many patients are turning to private healthcare to avoid long delays. • Workforce Challenges: The NHS faces severe staffing shortages, exacerbating service delays and impacting care quality. • Post-COVID Backlog: The pandemic created a backlog of treatments and surgeries, which the NHS is still struggling to clear. As this backlog persists, many patients are looking to private providers for faster access to healthcare services. As a result more Self Pay Patients are coming to the fore and are using their savings to access treatments to enhance their Lifestyle, potentially affecting assets under wealth managemtn firms for Wealth firms. This has attracted some firms to look at Private Healthcare as an alternative for clients. Companies are enhancing their health benefit packages and Providers are adapting tiered health plans which provide different levels of coverage depending on patients' needs, helping to increase accessibility. The private healthcare market is expected to continue growing as NHS pressures persist. Patients will likely continue seeking faster, more reliable care in the private sector, either through insurance or self-pay. While demand is rising, affordability will remain a critical issue. Insurers are looking at ways to innovate pricing models and will offer high-quality, cost-effective solutions. Paradigm Protect offers a range of Healthcare Solutions as well as referral options for those who see the opportunity but do not have the capacity for delivering client solutions themselves.Click here to view our Healthcare panel. Wealth transfer Something we touch on but will affect many of the Wealth firms that work with Paradigm Protect is the area of wealth transfer A recent survey by Schroder indicated again that advisers were concerned that their businesses could lose assets as wealth transfers between generations, with the number now standing at 63%, up from 54% in May 2022. Despite the growing industry awareness of the risks and opportunities associated with intergenerational wealth transfer, attracting younger clients is not a top priority for the majority of advisers. This is evident from the aging profile of their client bases and the fact that only 25% of advisers would provide advice to clients with less than £50k to invest, a steep decline from 52% in 2019. Many do not as yet look at Protection based tools such as Convertible Term Assurance with the opportunity to convert to Whole of Life as potential solutions to staving off IHT and engaging with the younger generations in the family to discuss such areas. Such basic IHT planning can help to bridge the generational Gap in families and help advisers understand the needs/wants of the younger generation in terms of Wealth accumulation and views on where to invest. Driving these meetings early on can help to bind relationships and prevent the next generation seeking other easier to access platforms which may be detrimental to their interests. Lifestyle Realities September 10th was World Suicide
08 AUTUMN PROTECT NEWSLETTER Prevention Day, when organisations across the globe come together to spread awareness and provide support in aid of reducing suicide. According to the Office for National Statistic (ONS) there were 5,642 suicides in the UK in 2022, with approximately three quarters (74.1%) of these being men. Industry figures have spoken out as to what we can do to be a part of this initiative. There are a number of elements to this but the main ones are prevention, employee resilience, intervention and rehabilitation. Employee resilience elements are focussed on offering health and wellbeing programmes that promote a healthy lifestyle, good sleep hygiene and fitness. It also highlighted the importance of mental health first aiders and signposting employee assistance programmes to provide support for those who need it. One of the many innovations in our Industry for the good over the past 40 years has been the growth of such elements available in Individual Life Policies as well as those with Group Risk and Group Health products. We should not forget that these can provide a vital part of wellbeing which can lead to prevention too. So....I hope you have had a successful 9 months of the year so far, and Thank You for your continued support of Paradigm Protect. As always if there is anything we can do to help please get in touch.
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By UnderwriteMe Marketing Team As Income Protection Action Week approaches its fourth year with the aim of giving advisers education about the positioning and value of Income Protection (IP), we thought it was worth highlighting the importance of the product and how it’s evolved. IP can be a vital financial safety net that can be used when an individual is unable to work due to an accident, injury or illness, yet recent research has highlighted some worrying statistics. 7 in 10 workers do not have IP and only 2 in 10 homeowners who pay a monthly mortgage have an IP policy. Many of us would face financial difficulties if we couldn’t work for a significant period of time. Here’s a short case study to highlight the difference and impact on life with or without Income Protection: Nigel is 29 and owns his own home. He works in IT and earns £50,000 per year. Nigel suffers a serious back injury, which results in him not being able to work for 9 months until surgery. It’s expected his recovery will take 2 years post-surgery. Without an IP policy, Nigel gets full sick pay from work for 1 month. When his sick pay finishes, he’s entitled to £116.75 per week Statutory Sick Pay for up to 28 weeks. Unfortunately, this nowhere near covers Nigel’s expenses and he’s forced to take out loans, before selling his home and moving back in with his parents, all of which causes significant stress and depression. With an IP policy, Nigel gets sick pay from his employer for the first month. After that, his IP provider pays out 65% of his salary, which equates to £2708 per month. This enables Nigel to pay all his bills and expenses. This allows him to complete his surgery and recovery without any added financial pressure and can return to work when he’s fit and ready to do so. The above case highlights just how important Income Protection is and it’s encouraging to see that more people and advisers are starting to recognise that it’s an important part of financial planning and that it plays a significant role in protecting an individual or family against an unforeseen circumstance. Income Protection Week 10 AUTUMN PROTECT NEWSLETT10
This is backed up by IP sales which are starting to rise. The Association of British Insurers (ABI) reported that IP policies hit 247,000 last year, a 16% increase compared to 2022. When we look at our own Protection Platform data, we’ve seen a steady and impressive uptick in the number of IP policies sold. There was a notable growth of 28% from half one in 2023 to half one in 2024. At UnderwriteMe, we’re continuing to lead and promote the importance of IP, giving advisers access to as many IP providers as we can. We’ve recently introduced Vitality IP and Holloway IP onto our platform, with plans for additional providers in the pipeline. We remain committed to providing advisers and customers with an array of insurers to compare prices and underwriting from. It's important the industry continues to work together to promote the benefits of IP, whilst building consumer trust and making sure IP products are easily understood, whilst giving customers the best possible outcomes. When it comes to Straight Through Processing (STP) we see that through the Protection Platform 75% of customers are given a point-of-sale decision. By giving customers immediate up-front point of sale decisions, it takes away the waiting time of having the case assessed manually and potentially the need for medical evidence, which adds further delays to the process. Start getting familiar with the IP cover our insurers have to offer on the Protection Platform: • Log in • Register 11 AUTUMN PROTECT NEWSLETTER
THE 125 FOUNDATION TAKE NOTE: The 125 Foundation was established in 2015 to celebrate the Society's 125th Anniversary. The Foundation provides exclusive financial support to your clients, their communities or causes that are close to their hearts. KEEP AN EYE OUT FOR THIS SYMBOL! WE HAD A TOTAL OF 83 APPLICATIONS 45 applications of those have been to help our Members, ranging from financial struggles, to supporting those suffering life-altering events. ! PAYING OUT OVER £51,000 IN FINANCIAL AWARDS TO MEMBERS, LOCAL CAUSES AND CHARITIES THROUGHOUT 2023 "We simply wouldn’t have had the money without the 125 Foundation. And there are no words to express how you can thank somebody for that, because it’s life-changing opportunities that have been given by their help and support.” #TAKENOTE To find out more about our 125 Foundation, head to our website www.cirencester-friendly.co.uk/member/added-value-benefits WATCH ANNE’S STORY HERE IN OUR MEMBER’S WORDS
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‘Gen Z' – what are they like? They introduce the word ‘like' into too many sentences for my liking, something they've inherited from millennials. Of course, social media ‘likes' are an important currency. But there's more, I learned a lot at the recent Protect Z event, where all of the speakers were under 30, with a few undercover boomers swelling the ranks of a largely youthful audience. We heard about the evolution of language – ‘platty joobs', the ‘genny lec', ‘cozzie livs' as well as menty bs (more of which later). Gen Z refers to individuals born between the mid-to-late 1990s and the early 2010s - they represent some 25% of the global population, it will be the predominant cohort in the workforce by 2030. For a more detailed exploration of Gen Z, I'd recommend the Oliver Wyman' A-Gen-Z' report here. The ‘Protect Z' opening address was by Clodagh Griffin, a 27-year-old journalist and content creator, who gave a really engaging talk on reaching a younger audience via social media, which was then built on via a panel debate. Social Life There were various themes – the need for authenticity, transparency and relatability, their strong sense of values, the importance of health and the absolute reliance on their phones, for social interaction, education and learning, entertainment and more. Clodagh suggested that attention spans are short – the first three seconds of any communication is key. Keep it simple (but not stupid). Consistency is important – you can't be on TikTok once a week and expect to be remotely relevant. The fact that some 67% of Gen Z use TikTok as their search engine really stood out for me. Companies that aren't on TikTok risk invisibility. Panel discussions reflected on 14 AUTUMN PROTECT NEWSLETTER Peter Hamilton Head of Market Engagement Zurich Talkin' about their generation
how we might reach out, there are some financial service companies taking tentative steps, while recognising challenges such as that need for authenticity and the impact of multi-level approvals required within some firms. Much of the early part of the meeting was spent observing how much time Gen Z spent on social media and how financial service firms might legitimately interact. In subsequent sessions, there was more focus on how health is important to the Gen Z, but also how health anxiety is rocketing. One aspect I think is worth exploring more is the link between the two. The anxious generation The phrase ‘menty b' is a shorthand for ‘mental breakdown' – and while it may seem a carefree phrase coined by a generation more open to talking about mental health, there's a serious element behind it. A recently published book ‘The Anxious Generation', by Jonathon Haidt suggests there's a very direct and causal link between Gen Z's social media use and the huge rise in mental health problems, although some will argue that argue that young people have more things to worry about, including climate change, inequality, global conflict, debt and more. He calls it "The Great Rewiring of Childhood" and he explores the rising levels of anxiety and depression among Generation Z and attributes this trend to several factors, including increased social media use, overprotective parenting and the current cultural climate. He talks of four foundational harms – social deprivation, sleep deprivation, attention fragmentation and addiction. Social media platforms, he says, can exacerbate feelings of inadequacy and social isolation, as young people often compare themselves to the highly curated lives of others. While there are few guardrails in terms of on-line access, overprotective parenting has limited Gen Z's ability to develop resilience and independence. By shielding children from potential risks and failures, parents may inadvertently hinder their ability to cope with life's challenges. His recommendations include reducing social media use, promoting free play and unsupervised time for children and fostering environments where young people can engage with diverse viewpoints. He sees all of these as crucial steps in addressing the mental health crisis facing Generation Z. Within the Protection world, we have, rightly, an increasing focus on mental health – whether it's the underwriting questions we ask, or the way in mental health claims are assessed. We promote various positive interventions, and many insurers offer a variety of counselling services. Societally, it could be though, that we are pulling people out of the river when we should be going further upstream to stop people falling in in the first place. Only this week, Eton college has said it will ban smartphones in school and issue handsets that can allow calls and texts but nothing more. There are State school initiatives too - pupils at John Wallis Academy in Ashford have to put their phones in a magnetically sealed fabric pouch, which is only unlocked at the end of the day. The school has seen a 40% drop in detentions and a 25% reduction in truancy since introducing the scheme in January. ‘The Anxious Generation' may not be everyone's idea of a summer beach read, but, like the Protect Z conference, for me at least, it raised a range of questions. The social media genie won't go back in the bottle, there are manifest benefits, but equally very real harms which we need to do more to combat. As financial service companies (as well as policy makers and others), we need to reflect on how best to understand and engage with Gen Z, whether via Tik Tok or in other ways; but also to be alert to the downsides of social media and what more we can do to reduce the growing number of menty bs. 15 AUTUMN PROTECT NEWSLETTER
This month, it’s World Alzheimer's Day (21st September) and in the Solihull office for Paradigm, we have selected Alzheimer's Society as our chosen charity of the year. I thought I would, therefore, look at Alzheimer's and its impact on mental health for my article this month. Before I begin, I must start by saying that this is a topic very close to many of the team’s heart – and I’m sure many on yours too. We will be undertaking a huge challenge to try and raise valuable funds for Alzheimer's Society; we’re aiming to walk or run the same distance as walking to Munich from our Birmingham Office, which equates to 744 miles (1197km)! Why Munich you may wonder? Well, this is where Alzheimer’s was first discovered and researched in the early 1900s by Alois Alzheimer. If you would like to donate we’d be extremely grateful, you can do so here. As you will know, I often like to start with some statistics, so, did you know? • 1 in 3 people born in the UK today will be diagnosed with dementia in their lifetime • 1.4 million people are expected to be living with dementia by 2040 • Dementia is the UK's biggest health and social care crisis Alzheimer's disease is a progressive neurological disorder that leads to the degeneration and death of brain cells, causing memory loss, cognitive decline and other behavioural changes. It is the most common cause of dementia. The impact of Alzheimer's extends beyond the individuals diagnosed with the disease, and can profoundly affect the mental health of both the sufferers, their loved ones and their caregivers. The impact on Alzheimer's patients For those diagnosed with Alzheimer's, the journey is often fraught with emotional and psychological challenges. As the disease progresses, individuals experience a decline in their ability to remember, think and make decisions. This cognitive decline can lead to feelings of frustration, confusion and helplessness. The loss of independence can also be a significant source of distress for Alzheimer's patients. Social interactions may also become challenging, resulting in isolation and loneliness. The stigma associated with dementia can further exacerbate these feelings, making it difficult for patients to seek support and understanding from others. Many patients also experience anxiety and depression as they struggle to come to terms with their diagnosis and the changes in their abilities. The impact on caregivers Caring for someone with Alzheimer's can be demanding, stressful and overwhelming. Caregivers, who are often family members, face a range of emotional and psychological challenges as they navigate the complexities of the disease. The constant need for care and attention can lead to chronic stress, anxiety, and depression for individuals doing their best to support a loved one with Alzheimer's. Understanding the impact of Alzheimer's on Mental Health 16 AUTUMN PROTECT NEWSLETTER Riona Mulherin Director of Marketing & Operations Paradigm
17 AUTUMN PROTECT NEWSLETTER Continued on next page... One of the most significant challenges for caregivers is the emotional toll of watching a loved one deteriorate. The gradual loss of the person's memory and personality can be heartbreaking, leading to feelings of grief and sadness. The demands of caregiving can also lead to physical and mental exhaustion. Many caregivers neglect their own health and well-being, prioritising the needs of the person with Alzheimer's over their own. This can result in burnout, a state of physical, emotional, and mental exhaustion that can have serious health consequences. Supporting mental health and wellbeing for Alzheimer's patients and caregivers Addressing the mental health needs of both Alzheimer's patients and their caregivers is crucial for improving their quality of life. For patients, early diagnosis and intervention can help manage symptoms and provide access to support services, although it can be a slow process to get a diagnosis. Cognitive therapies, medications and lifestyle changes may be able to help delay the progression of the disease and improve mental wellbeing. Encouraging social interactions can also help reduce feelings of loneliness or isolation. There are often local community support groups that can offer a safe space for patients to express their feelings and connect with others who are going through similar experiences. For caregivers, seeking support and respite is vital. The responsibility for care should not lie with just one person, and caregivers should not hesitate to ask for help from family, friends or professional services. Support groups and counselling can also be beneficial for caregivers, providing a space to share experiences, seek advice and receive emotional support. It may be easier said than done, but those providing care should also prioritise their own health and wellbeing by maintaining a healthy lifestyle, getting regular exercise and taking time for self-
18 AUTUMN PROTECT NEWSLETTER care. If you know someone who is caring for someone with dementia, perhaps you can encourage them to take breaks and time for themselves, and you could step in to deliver support and assistance whilst they do? Alzheimer's disease has a profound impact on the mental health of both those diagnosed with the disease and their caregivers. Being aware of what others may be going through and offering support during this time can be invaluable when someone is struggling. I would highly recommend taking a minute to listen to our latest Paradigm Podcast which delves into this in more detail; Aimee Carnwath talks with our Director of Membership, Richard Goppy, Mortgages Technical Director, Christine Newell, and special guest Claire Askham, Head of Mortgage Sales from Buckinghamshire Building Society. Together, they discuss their experiences with Alzheimer's and the importance of open conversations in nurturing understanding and support. Have a listen here! It's clear that understanding and addressing some of the mental health challenges outlined above is essential for improving the quality of life for both patients and caregivers. By providing support, resources and understanding, we can help alleviate the emotional and psychological burden of Alzheimer's disease and create a more compassionate and supportive environment for all those affected. There is a wealth of information available via the Alzheimer’s Society website here, if you wish to research this further.
11 SPRING PROTECT NEWSLETTER Compare current and historic policies Weigh up CIC policies seeing them side by side, unlimited comparisons across whole of market including Vitality CIC Compare With CIC Compare you can: To find out more or to book a demo: CIC Compare is an easy to use module that helps you compare critical illness policies in under five minutes Click here Call us on 01844 295 544 Email us at [email protected]
You’re likely all too familiar with the misconceptions that exist around insurance, one of the more common being distrust around insurers paying claims. Our Wealth and Wellbeing research showed that nearly 1 in 5¹ without cover don’t have protection because they don’t trust insurers to pay their claim. There’s a lot to unpack as to why that might be the case, so I won’t do that today. Instead, I want to focus on what’s in your control, and that’s how you engage with your clients on protection. How can you use claims to inspire trust? It’s almost a cliché to say at this point but claims really are the moment of truth for protection and your advice. Here’s 5 simple ways you can incorporate claims into your advice. 1. Talk about claims from the outset Our Wealth and Wellbeing research revealed that 1 in 5¹ would want to hear about the claim process from their financial adviser as part of the protection conversation. As much as the focus of the conversation should be on the merits of the product, talking about how it works in practice can be just as important. Take the time to talk through your recommended insurer’s claims process, how they go about making a claim and what they can expect. There’s usually plenty of information on provider’s websites that can help form the basis of that conversation. The research also highlighted that 15%¹ want to hear about claim statistics. Claims reports can be a valuable tool to help you talk around your recommended provider’s claims experience, showing that declined claims are the exception and not the rule. 2. Bring your advice to life with case studies Real stories can illustrate the difference that protection makes to those individuals and families going through a difficult time and shows that protection pays. We’ve recently shared Jennie’s story with the market, a powerful message that shows the impact of protection can be life changing. 20 AUTUMN PROTECT NEWSLETTER Carl Heard National Account Manager LV= Jennie Gow is a Formula 1 broadcaster and pitlane reporter. In December 2022, her life changed when she suffered an unexpected stroke triggered by a heavy cough. Only a few months before, she had taken out Income Protection on the recommendation of her adviser. This policy ended up providing important support to her and her family at a difficult time. Watch Jennie's story here At LV=, we’ve launched a real stories hub, to provide you with relevant and human examples that you can draw out in your conversations. Using claims to empower clients’ decisions
21 AUTUMN PROTECT NEWSLETTER 3. Don’t be afraid to talk about declined claims I briefly mentioned claim statistics above. At LV=, we couldn’t pay 6%² of personal protection claims last year. We believe it’s just as important to talk about these claims and why we didn’t pay them. Behind most of these declined claims there’s a wider industry issue, with around 7 in 10² declined claims being due to misrepresentation. Sharing these statistics can open the dialogue, helping clients to understand the reasoning behind why insurers occasionally have to decline claims. This will help your clients feel confident that with your advice and support this won’t happen to them. 4. Talk about the wider benefits of protection Most protection products these days go beyond the main claim. Within our Income Protection policy alone, we offer 4 potential claim opportunities through the various product features included. Last year we paid 54 Fracture Cover claims, paid £105k in Death Benefit payments and £89k through our Parent and Child cover feature², all of this is built into the policy. Fracture Cover is a great one to highlight with clients early on, often talking about protection can feel very ‘doom and gloom’ to a client. The idea of suffering a fracture can be seen as a more relatable experience compared to early death. Eric* injured his knee playing football in May 2023. He called us in June to claim on his Income Protection policy which includes fracture cover as standard. We received medical evidence that showed he was unable to work, and so we were able to pay his main claim. We needed more evidence to pay his additional fracture cover claim, and once that was received, we were also able to pay him a lump sum of £2,200. Eric had to have surgery, but his recovery put him on track for a return to work in early 2024. *Name for illustrative purposes only. The peace of mind these additional product features can provide can’t be understated, and case studies can really bring the value of protection to life. The same applies to value added services like remote medical services, don’t forget to make them a part of the conversation. We have a short guide that shows all the different ways your client can benefit across the LV= Flexible Protection Plan. 5. Use claims stories to re-engage existing clients Over time, people can forget the conversation that took place that triggered their protection purchase. Remember, protection is often an emotional sale that appeals to your client’s desire to make sure loved ones are taken care of, homes are protected, and long-term financial goals aren’t impacted. Sharing these case studies with existing clients can really help to remind them of why they took the cover out in the first place and help aid retention. The good news is insurers often have great resources to help you empower your protection conversations. If you need any more support, your LV= account manager is more than happy to help you. *Names and images are for illustrative purposes only. ¹ LV= Wealth and Wellbeing Research – December 2022. ² LV= Claims report 2023
22 AUTUMN PROTECT NEWSLETTER In celebration of Black History Month, which take place next month, we sat down with Melissa Lackenby, our Events Manager, to discuss her experiences, perspectives, and insights on diversity and inclusion in the financial services industry. Drawing from her personal journey and professional experiences, Melissa offers valuable insights into the challenges and opportunities facing Black individuals in this sector. We’ve decided to put the same questions that will also feature in our Black History Month podcast with Richard Goppy and Michael Brown, to Melissa Lackenby, our Events Manager to share her perspective on this important celebration. Here’s what she had to say... Q. Are there any historical figures or events in Black history that have influenced you, whether they are personal or professional? I suppose the most inspirational figure for me was my dad, he came over from Barbados to England when he was just 19 years old. Although my uncle was already here, my dad left his mum, along with the rest of his family, to come to England during the Windrush. When I think back to what I was like at 19 years old, I’m not sure I could have moved across the world to what was really the unknown for him. He worked hard every day, ensuring that we always had the best; not everyone can say they were able to spend the 6 weeks holiday in the Caribbean, but we did, and that was always down to my father’s work ethic. My dad always instilled in us about the importance of getting an education and working hard. He would say that we had work to hard because we are Black, and although I don’t think I ever fully understood why, it was something that pushed me and my brother in life. It raised us with a little fight in us, working hard to make sure we got what we deserved. Black History Month: A Conversation with Melissa Lackenby Melissa Lackenby Events Manager Paradigm
23 AUTUMN PROTECT NEWSLETTER Q. Research from the Black Talent Charter in collaboration with Bain & Company, shows that despite ongoing efforts to diversify, the finance and the professional sectors, which include consulting, accounting, law and finance, currently employ less than half the percentage (2%) of the Black British working population, which is 4.4%. So what do you think could be done to improve this statistic and increase representation in our industry? I think the most important thing that can be done is getting the message out there to show that anyone can work in the financial services industry. We need to tackle the stigma surrounding the industry, and I think that the only way to do this is to face the facts and figures. We know that the industry is predominantly White and male, and I think talking about this helps raise awareness and ultimately will help to drive positive change in terms of achieving greater diversity. Q. Research from Black Talent Charter shows that fewer than 1% of senior leadership in financial and professional services are Black. What qualities do you think are essential for leadership within the financial services industry, particularly for promoting diversity and mentoring those who want to climb the ladder? Being open to listen to new perspectives and ways of doing things, looking at people for their talent not for a statistic. People in leadership shouldn’t have any bias, whether that’s based on gender, race, sexuality, cultural background or anything else. Q. Are there any success stories you have had that highlight the impact of greater diversity in the workplace? I don’t really have a success story as such, however, I would say that personally in my work life I haven’t faced any discrimination based on the colour of my skin, is that a success story? I suppose it is in a way. I’ve been given opportunities and managed to work my way into positions that I have wanted, whether that be because of my work ethic, luck or a sign that times are changing in a positive way. Q. How can we encourage more Black individuals and of course other minority groups, to consider a career in financial services? I think there is plenty that can be done; we should be shouting from the rooftops about the opportunities that exist, talking about the changes in the industry, talking about the opportunities for growth and progression, and the sharing the wide variety of roles that exist (e.g. I am in event management, but within financial services – you don’t have to be giving advice to be in the industry!). One of the things that stood out for me was the Diversity and Inclusion forums from Mortgage Solutions, I think working for a business that has a membership with professional body shows that they are aware of issues that exists and want to be part of the change. Q. Finally, how can people support and celebrate Black History Month within their workplace and community? Or do you have any materials such as films they could watch if they wanted to learn more? Acknowledge it, talk about it, don’t let the month pass by. By celebrating this month, we raise awareness. We are openly educating ourselves about things from the past and how we want and need to move forward. Black History Month doesn’t just raise awareness for Black people it highlights the need for diversity and inclusion of all. We all want for a better future and this is just one way to encourage this; more awareness increases the likelihood of change. I don’t want to make any suggestions for films. Most films concentrate on American Black history. Slavery, Martin Luther, Rosa Parkes, Malcolm X, which is just one side of Black history. I would suggest people get involved in their local communities. For instance, the reggae carnival in Coventry had a dedicated Windrush exhibition people could visit for free. That’s English Black history that only a small amount of the UK population is aware of.
www.paradigm.co.uk/protection/ 0330 053 6061 [email protected]
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