PARADIGM PROTECTION NEWSLETTER SUMMER 2024 www.paradigm.co.uk/protection
CONTENTS 4 Protection Market Update Paradigm Protect Mike Allison 8 Guardian Creating Better Life Insurance Outcomes for Unmarried Couples 10 Paradigm Mental Health & Movement Riona Mulherin 14 Unum Helping your Clients Craft their Benefits and Rewards Strategies 16 Paradigm Pride in Financial Services: Creating Inclusive Spaces for Everyone Dylan Kinsella
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Welcome to the latest edition of the Paradigm Protect Newsletter! As ever, we try to bring you some different perspectives through a range of topical articles from Providers, as well as assessing the protection market as a whole. In this edition there are some thought-provoking statistics about the make-up of the UK workforce which gives rise to a host of opportunities in the Individual, Group and Healthcare space. It is also ‘Claims Season’ when most Providers inform us of their claims results for 2023, and whilst I do not intend to directly repeat anything you may have seen in the press over the past few weeks, there are some interesting takeaways from a selection of Providers I will highlight below. In addition, I’ll highlight some of the innovations in the protection space in terms of products and the increasing value that third party Providers add to our industry too. Firstly though, I must thank you all for your continued support of Paradigm Protect. We were over the moon to win ‘Customer Excellence: Service Providers’ at the Legal & General Quality awards in May, and we were also awarded highly commended in the ‘Outstanding Service Provider Performance’ as well. We are grateful to everyone who has supported us and we are delighted to have our hard work recognised in this way. Market Let’s begin with the market in general by looking at the 2023 Swiss Re survey published in May. They showed that in 2023, some 1,997,450 new Term assurance, Whole Life, Critical Illness and Income Protection (IP) policies were sold, a decrease of 5.5% compared to 2022. There was a decline in sales of all Term policies from the previous year, except in the area of Relevant Life which was up 11.4% - more on that later! Increased regulatory pressures seem to have had an effect, as non-advised sales were down from 50% of total Term sales in 2022, to 35% in 2023. When we dig a little deeper into these numbers, there are some real positives for the independent sector, which still drives the majority of sales. It is not surprising that sales are down given the challenges being faced in the mortgage market during 2023. The clear winner in terms of product sales in 2023 was IP with a 10% increase in total policies sold in 2023 compared to 2022. This is certainly a growing trend with a greater focus now on a clients ability to cope financially during a period of illness as opposed to incapacity. Mike Allison Director of Protection Paradigm Protect Protection Market Update 04 SUMMER PROTECT NEWSLETTER
05 SUMMER PROTECT NEWSLETTER Continued on next page... The cost of living crisis we have witnessed over the past 2 years or so has highlighted the need for financial resilience more than ever before, and there are more telling statistics to help us understand the behaviours of clients as a result. In the FCA Financial Lives Survey published in April this year, their report focused on: people’s financial situation as at January 2024, on some changes since a year ago and on general perceptions of how things have changed since the cost of living started to rise. You can read the FCA’s findings here. The results show that: • More than 1 in 4 (28%) UK adults either not coping or finding it difficult to cope financially • 11% of UK adults in the 12 months to January 2024 cancelled (6%) or reduced (6%) the level of Insurance cover • 12% had chosen not to buy an insurance policy to save money or because they could not afford the insurance premium Mortgage holders were slightly less likely than the national average to be struggling in January 2024, but still 24% were not coping financially or were finding it difficult to cope. Some 5% had missed paying one or more domestic bills or credit commitments in the previous 6 months. Given more than one in three mortgage holders had seen their mortgage payments increase in the previous 12 months, this statistic is not surprising. What it does show is that consumers are very aware of their financial position, probably more than at any other time in the past two years. What they are seemingly less aware of based on survey results we have seen, is how little it can cost to protect their mortgage payments in the event of illness. If there is one message to highlight of Consumer Duty it is to make clients aware of the risks they face in not taking out cover to support them through illness and incapacity and the cost to them to do so. You may have seen that Beagle Street recently surveyed 2,000 UK adults aged between 18-40 on their attitudes and behaviours towards life insurance. Nearly three in 10 (28%) adults with a mortgage do not have life cover, with 23% of these saying they do not currently see it as a priority expense. Of those with a mortgage, one fifth (22%) had never thought about life insurance, while the same proportion (22%) said the cost-of-living crisis has meant they do not have enough money to pay for it and 19% said they cannot afford life cover. This is a statistic that, given other items of expenditure in our ‘weekly baskets’, I cannot understand, and the burden of responsibility lies within our community to help to change this view. Finally, I would point you to a great piece of work done by The Exeter, which gives an excellent background to similar consumer thoughts across protection, which may be of great value in developing your own strategies in engaging with past, current and prospective clients. In short, if we don’t understand what consumers are thinking we cannot plan to help them. Claims As mentioned in the introduction, we are very much in ‘Claims Season’. Increasingly, claims stats should be important in determining product recommendations to clients. Some Providers will have more autonomy in paying out claims than others, and sometimes this can depend on how much of the cover provided is reassured or kept within the Provider’s own fund – claims stats are a good way of analysing which Providers have a better track record of paying claims, and therefore could influence where your business is placed. It’s also important to look at what percentage of claims weren’t paid as a result of ‘misrepresentation’ (incorrect information passed to the Provider when making their decisions – usually in the underwriting section), as again, this may paint the statistics in a more positive light. Many Providers now ask advisers to ensure
06 SUMMER PROTECT NEWSLETTER that when any follow up documentation is sent to the client, that they check it and then return it as requested. This can help avoid any mistakes at the application stage – remember, no blame can be attached to Providers when incorrectly answered medical questions would have resulted in a decline on the application. What is important nowadays is that advisers are aware what conditions cause a decline or deferral. Increasingly, mental illness is an extremely ‘grey’ area and it is wise to understand what is likely to be the outcome of an application in certain scenarios. As always, our Protection Helpdesk are on hand to support with these sorts of enquiries, so please don’t hesitate to get in touch here, or call 03300 536061. In addition, UnderwriteMe is an option when assessing whether conditions have been excluded from the cover taken out or it is included but at a higher price. For anyone that has listened to a Vitality presentation in the past few years you will have heard them talking about driving healthier lifestyles to reduce mortality and morbidity risk. In their recent claims report, they show that healthy exercise habits are 15% more impactful on life expectancy at age 65+ than at age 45 to 65 – and interestingly their ‘engagement’ rates are highest in the over 60s age bracket! They claim that for say 4 hours walking a week (5,000 steps), this can add over 4 and a half years to life expectancy – that is some return! I worked it out to be 40,000 hours back for around 3,000 hours of ‘investment’ from 60–75! In addition, their members experience double the impact in reducing their future risk of hospitalisation when they engage with Vitality. Another interesting statistic came from Scottish Widows showing that 40% of all CI claims paid are for individuals between the ages of 30 and 50. The point being that we cannot now tell when morbidity and/or mortality may strike, and therefore it is incumbent on all advisers to point out the risks using risk calculators – readily available via Providers or using SolutionBuilder. In case you’re not aware, Paradigm members can get SolutionBuilder licences for free, so please let us know if you’d like to know more. Finally, another thought-provoking stat from The Exeter on claims is that their average IP claimant in 2023 was born in 1987 – another reason not to assume claims on any products will arise later in life. Product evolution Finally, it would be remiss of me not to mention the latest feature from Zurich – Accelerate. It is something of a ‘bridge’ between Insurance and Healthcare, and is designed to support both adults and children in the event of cancer, heart issues and brain malfunction, such as a tumour, dementia etc. It has been developed under the guidance of Sam Wells who himself faced some difficulties in getting treatment for his daughter when she was diagnosed. The story is told here in an interview we did with Sam. Looking ahead... We have had a strong start to the year at Paradigm Protect, and are consistently looking to add new products and services that will help you develop your own propositions and add value to your business. We expect to have some new Providers on panel this year, so keep an eye out for those developments and as always you can expect to hear important updates on what’s going on in the market via our Protection webinars or our Mortgage & Protection face to face events. You can see what’s on and register for free here. I hope you have all had a vibrant first 6 months of the year and thank you for your continued support of Paradigm Protect. If there is anything we can do to help, please get in touch by email or call 03300 536061.
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By Rachael Welsh, Head of Marketing The trend of unmarried couples living together is growing and looks set to continue. According to ONS data, the proportion of couples who were cohabitees in 2020 accounted for more than one in 3 (37%) couples under 45 and more than one in 4 (26.4%) couples under 65¹. The 2021 ONS census data confirms this upward trend, with a greater proportion (27.6%) of couples under 65 reporting they were living as unmarried cohabitees one year on². This trend poses a challenge for our insurance industry when it comes to making sure life insurance payouts reach the right person, especially where that person is an unmarried partner. The challenge is to do with probate. As advisers who deal with life insurance will know, probate is the legal right to deal with someone’s property, money and possessions (their estate) when they die. This estate includes the life insurance payout, unless measures are put in place to keep it separate. The problem is that, without a will, unmarried partners are not ‘entitled’ to receive the payout under intestacy rules. These are the rules that relate to who inherits the estate if someone dies without a will. The rules decide how the estate must be shared amongst the most ‘entitled’ people. These are the closest living relatives, starting with the husband or wife or civil partner. Unmarried partners are not ‘entitled’ and so the life insurance payout won’t come to them – unless their partner’s relatives are generous enough to make a gift of the money to them. This leaves a big problem for our industry under Consumer Duty. As Swiss Re points out in its 2023 Life Claims: a beneficial direction report, “it’s hard to identify a more important consumer outcome than the payment of a death claim that is not only timely but is to the intended person”. The reinsurer estimated that “one in three couples taking life cover could be at risk of the money intended for the partner not reaching them, if some means of directing it to them is not put in place.”³ For unmarried couples taking out life insurance, it’s therefore really important to either write the policy in trust, or put in place beneficiary nomination, to make sure the money goes to the person they want it to. So, what is beneficiary nomination? Beneficiary nomination is the process of naming the people you want to benefit from the life insurance payout within the policy application process. It uses contract law to make sure the money goes to those named people and it means the payout can bypass probate. The end outcome is much the same as a trust, in that the named beneficiaries receive the payout, but with beneficiary nomination the implementation is easier. So how does it work? The process of beneficiary nomination takes place as part of the application. The policyholder can add a number of named beneficiaries and often can specify the percentage of the payout they want to go to each person in the application form. The beneficiaries can Creating Better Life Insurance Outcomes for Unmarried Couples 08 SUMMER PROTECT NEWSLETTER
be updated at any time, which makes it flexible for the long-term. We suggest clients review their beneficiaries every year to make sure their choice is still appropriate and details are up to date. Payout Planner will also be superseded by a trust if one is set-up at a later date. Because of its ease, flexibility, and most importantly – its vital role in ensuring the money goes to the right person, particularly when those people are not married – we suggest that there is a strong argument to say that beneficiary nomination is the right default choice to consider in terms of ensuring good consumer outcomes. This is true even if the client intends to put a trust in place in future. In terms of our own experience, at Guardian we’re encouraged to see that so many advisers recommending our products are already on board with this concept. 68% of all our life policies sold to date have used our beneficiary nomination, Payout Planner⁴. With 5 years of trading and claims data behind us, we can also see it’s having a positive impact at claim, making it easier and faster to pay the intended recipient of the policy. Linked to this idea is the concept of dual life. This is relevant whether the couple are unmarried or married. By setting up 2 single life policies (or dual life) advisers can make sure they’re not just setting up a policy that suits the policyholders’ lives right now but are making sure that it is going to be fit for clients no matter how their lives change in the future. Which we believe can only benefit consumers. Discover more about Payout Planner here. [1] ONS Q1, 2020 data, shared in Swiss Re, Life Cover Payout- under the microscope, February 2023 [2] ONS census data for England and Wales, 2021, shared in Swiss Re, Life Cover Payoutunder the microscope, February 2023 [3] Swiss Re, Life Cover Payout- under the microscope, February 2023 [4] Guardian Payout Planner usage (5 years), 1 January 2019 - 31 December 2023 Guardian Financial Services is an appointed representative of Scottish Friendly Assurance Society Limited. All products are provided by Scottish Friendly. 09 SUMMER PROTECT NEWSLETTER
Following the introduction of our mental health section within our newsletters, I’m delighted to bring you the next instalment, this time looking at movement and physical activity - following on from ‘Movement’ being the theme of Mental Health Awareness Week 2024 which took place in May. This theme is relevant to our industry, where the mental wellbeing of employees directly influences productivity, decision-making, and overall business performance. The reality is that your mental health is as important as your physical health, but the two are intrinsically linked. Regular physical activity is known to have a big impact on our mental health, our quality of life, and also our wellbeing. It also plays a crucial role in the prevention and management of various conditions, including heart disease, stroke, diabetes, and breast and colon cancer, and more. However, despite this, more than a third of UK adults don’t do the recommended amount of activity. You can read more about this in the Mental Health Foundation’s report here. So, lets quickly recap on why physical activity is crucial for mental health: • Releases endorphins which naturally lift your mood and reduce stress, helping you to feel calmer. • Can boost your self-esteem and selfconfidence. • Can improve your concentration and productivity and can enhance brain functions like memory and attention. • Contributes to better sleep quality, can help you to relax and also reduce fatigue. • Can have a positive impact on any stress or anxiety that may be being experienced. • Can help you to connect more with nature, or with other people, e.g. if you go for a walk with someone and catch up. Many of us will sadly know from personal experience that the pressures of the industry, from long hours to the highstress environment, can take a toll on employees’ mental well-being. As advisers you will know that often the trigger for someone seeking financial advice can be a stressful life event, such as divorce, bereavement or financial pressures. Of course, it follows that the professionals who provide services in these emotionally charged situations may struggle, and sometimes manifest mental health issues of their own. In turn, this may affect performance and can ultimately lead to absences and impact upon a firms’ income. In fact, Deloitte found that in the UK, “presenteeism is the largest contributor, where people work in spite of illness and not perform at their full ability, which is costing employers around £24 bn annually”. Furthermore, last year’s Mortgage Industry Mental Health Survey discovered that nearly a quarter (23%) of participants classed their overall state of mental wellbeing as either ‘poor’ or ‘of concern’, while nearly one third (30%) had seen their work/ life balance either ‘somewhat worsen’ or ‘greatly worsen’. Mental Health & Movement 10 SUMMER PROTECT NEWSLETTER Riona Mulherin Director of Marketing & Operations Paradigm
Here are some quick, easy ways that employers can support their teams’ mental health and wellbeing: • Creating a safe environment and workplace culture that encourages people to bring their ‘whole self’ to work and puts people at ease. • Encouraging open communication about mental health both in an open environment and between line managers and their team members, who should have regular wellbeing check-ins. This can help to reduce the stigma that may exist around discussing this openly. • Mental Health training, for example the Mental Health First Aider courses that are available – and which I personally have found to be extremely valuable and can educate individuals on how to spot signs of and support those experiencing poor mental health. • Providing access to support, for example via employee benefit programmes, such as Help@Hand which gives access to counselling and mental health support. • Developing company policies that are supportive of those who may be 11 SUMMER PROTECT NEWSLETTER experiencing poor mental health, but also policies that will positively impact upon the mental health of your team. • It could be as simple as providing useful resources that promote and educate on mental health matters, or taking part in activities that raise awareness, for example ‘My Whole Self Day’ which I have spoken about in a previous article. So, back to getting more active... I think we all know that regular physical activity can make us happier and healthier, but in reality, finding the time can be quite difficult. By building movement into our working day, we can have a positive impact on productivity and focus. I have seen some great examples of this popping up on my LinkedIn recently, for example I know our Senior Relationship Manager Sarah has been for dog walks with other account managers helping to get some fresh air, I’ve seen some of our firms encouraging their BDMs to come for a walk with them after lunch and to catch up then, I’ve even seen some people going for runs! If you don’t get much ‘free’ time, then building it into your working day is a great idea to help get you Continued on next page...
12 SUMMER PROTECT NEWSLETTER get your steps in! Encouraging employees to engage in physical activities, whether it’s a midday walk or a company-wide activity, can lead to better mental health outcomes. Indeed, by fostering a culture that values movement, you can expect to see three key benefits such as: • Reduced absenteeism • Enhanced productivity • Improved morale As we reflect on Mental Health Awareness Week 2024, it’s clear that movement and physical activity are not just personal health goals but are also imperative for the health of your team and arguably your business. If you haven’t already listened, we did a short podcast episode on this episode with Aimie Jo Shutt from Santander, that looks at this topic in greater detail. If you’ve not had chance to listen yet, please click here to listen. Finally it would be remiss of me to not mention the Walk & Talk 2024 that Jason Berry and Jonathan White from the ‘Mortgage Industry Mental Health Charter’ undertook during Mental Health Awareness Week, raising money for UK charities who specifically support Mental Health and Wellbeing by walking 125 miles from Tamworth to Canary Wharf, a truly amazing achievement. Bob Hunt, our CEO, and Richard Howes, our Director of Mortgages, were delighted to take part in day one of the walk. They’ve raised over £6,000 so far which is a fantastic achievement; here is the page if you’d like to consider donating. If you have any questions, issues or would just like to speak to someone, please do get in touch. I am conscious that many people have their own mental health experiences, and some like to keep those very private whereas others are keen to share their experience. If you need someone to talk to about anything that is upsetting you, you can contact trained professionals at Samaritans 24 hours a day, 365 days a year. You can call 116 123 (free from any phone) or email [email protected].
11 SPRING PROTECT NEWSLETTER Flexible, affordable cover from the income protection specialists. Find out how we can help you offer more cover, to even more clients. advisers.britishfriendly.com : [email protected] : 01234 348 007 Get in touch or register an agency ■ Discover Protect and Breathing Space, our specialist income protection policies. ■ Did you know you can tailor your client’s policy with our optional benefits, Fracture Cover and Children’s Critical Illness Cover? ■ Find out about our fair and flexible approach to underwriting, including cover for high BMIs, Type 1 Diabetes, high-risk occupations and hazardous pursuits. ■ Access our Adviser Toolkit, full of handy Sales Tools to help you have the protection conversation. ■ Offer additional health, wellbeing and financial benefits through Mutual Benefits and BF Care, including Digital GP appointments and Physiotherapy, at no extra cost. British Friendly Society Limited is incorporated under the Friendly Societies Act 1992. Registered Office: 45 Bromham Road, Bedford MK40 2AA. Registered No. 392F. It is a member of the Association of Financial Mutuals. British Friendly Society Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority Ref: 110013
By Jane Hulme, HR Director Let’s call it ‘the LEGO effect’. Although today’s multigenerational workforce doesn’t quite fall into the broad age bracket of 4–99 recommended for many of the company’s products, for the first time ever, five generations now collaborate in UK workplaces. This ranges from the youngest members of the Silent Generation approaching 80 (but not about to retire quietly) to Generation Z in their 20s. UK workplaces are now truly multigenerational spaces, marking a new combination of motivations, personalities, and dynamics. For those managing multigenerational workforces, actively engaging employees across all age groups is crucial. This approach not only ensures employee satisfaction but also builds a culture of inclusivity and belonging. By supporting all generations to thrive in the workplace, businesses can gain a valuable competitive advantage. Of course, one of the greatest challenges of a multigenerational workforce is the number of different life stages represented in your workforce population. Any reward and benefit strategy that your clients develop must offer their employees choice and flexibility to ensure that each generation can access benefits that best suit their individual circumstances. A recent report from WPI Economics commissioned by Unum UK demonstrates a clear link between health, happiness and productivity. The survey of more than 4,000 employees revealed that over 50% of respondents of all ages believe that a wider employee benefits package (such as access to Employee Assistance Programmes and virtual GP appointments) would impact their happiness at work. A step-by-step guide for your clients Below is a step-by-step approach for helping your clients design a flexible reward and benefit strategy that engages their entire workforce — from Gen Z to the Silent Generation. Our research highlights that, on average, 60% of surveyed employees of all ages said that a poor benefits package would influence their decision to leave their current job. This reinforces1 the role a comprehensive benefits and reward strategy can have in recruiting and retaining top talent. Workforce demographics The initial step involves gaining a true understanding of their workforce demographics. Encourage them to analyse the age distribution across the business and consider that, while some benefits will be universally appreciated across their workforce, there may be unique needs and motivations of each generation and each diverse strand. By recognising which life stage employees are at, your clients can tailor benefits that resonate with everyone. Workforce needs and expectations Next, they should consider gathering feedback on the needs and expectations of their employees regarding their reward and benefits preferences. Surveys, inclusive focus groups and one-to-one discussions are great ways to collect this information whilst simultaneously engaging the workforce. 14 SUMMER PROTECT NEWSLETTER Helping your Clients Craft their Benefits and Rewards Strategies
It’s also helpful to remember that, although grouping workers into age bracket sand generations may be tempting, the generations are not homogenous groups. For instance, would the same financial protection benefits appeal to two people in the same generation, one with young children and one without? Choice and flexibility Considering this, one option might be providing a menu of benefits to choose from to enable people to pick the benefits they think will best work for them. That way, your clients provide at least some options to suit all workers, regardless of their life stage. Tailored communications across a variety of channels Now that your clients understand the generational priorities within their workforce, the next step is to understand their employee’s communication preferences. That way, they can find the easiest way to make sure everyone is aware of all the benefits available to them. By learning to communicate in the style, manner and channel each generation prefers, your clients can tailor their messaging effectively. Surveying their workforce will give employees the opportunity to confirm how they prefer to receive communications, helping to drive engagement with their rewards and benefit package. Review and evolve Maintaining an effective rewards and benefits strategy is not a once-and-done job. It’s important to review and evolve their offering by regularly seeking employee feedback, speaking to their financial adviser, and monitoring industry trends. From here your clients can understand where they need to scale and innovate to continually meet the diverse needs of an ever-changing multigenerational workforce. Value added services To effectively address the diverse needs of a multigenerational workforce, it is essential that your clients design and create a flexible rewards and benefits strategy. Understanding the preferences and needs of different generations within their workplace community allows them to more effectively pinpoint rewards and support that genuinely resonate with each age group. While financial protection products, like Group Life Insurance and Group Income Protection may form part of their employee benefits strategy, they can deliver far more than financial support. Employee Assistance Programmes, virtual GP appointments, lifestyle coaching and mental health support are just some examples of value added services that each generation may tap into when possibly not needing to make a claim. Helping your clients to leverage these additional support services can help them in acknowledging generational differences and creating a benefits strategy for everyone’s benefit. Looking to get a Group Risk quote for your clients? As part of Unum’s partnership with Paradigm, you can take advantage of exclusive terms (details can be found on Unum’s partner page). Paradigm’s preferential rates are available via the UnumOnline portal where you can quote, buy, renew and service policies online. You'll need to use the portal to start all your new business quotes for Unum Group Risk policies for employers with fewer than 100 members. Log in or register with UnumOnline to get instant access to your best price*. Health, Happiness, and Productivity. Supporting the wellbeing of Britain’s workers and the growth of the economy. A WPI Economics study commissioned by Unum UK, November 2023. Censuswide survey of 4,035 UK employees (aged 16-69) between 20-21 September 2023 *For Group Income Protection, Group Life and Group Critical illness quotes with 3-100 members 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 15 SUMMER PROTECT NEWSLETTER
16 SUMMER PROTECT NEWSLETTER This Pride month, as we reflect on our recent podcast episode covering Pride and Mental Health Awareness week, I wanted to share some thoughts on the deep connection between these two topics. If you’ve not heard these episodes yet, you can listen here. These are topics close to my heart, so I’m thankful for the opportunity to share some of my thoughts and experiences. For many LGBTQ+ individuals, the journey to self-acceptance can be fraught with challenges that significantly impact our mental health. The fear of rejection, stigma, and discrimination can lead to higher rates of anxiety, depression, and other mental health issues within our community. This is why Pride is so essential—it's not just a celebration; it's a crucial space where we can express our true selves without fear of judgment. The Mental Health Foundation highlight results from a study by Stonewall, which found that: • Half of LGBTQ+ people had experienced depression • 3 in 5 had experienced anxiety • 1 in 8 LGBTQ+ people aged 18 to 24 had attempted to end their life • Almost half of trans people had thought about taking their life During our Pride podcast, we touched on how Pride events provide supportive environments that can give a positive boost to our well-being. Being surrounded by a community that embraces us for who we are can be incredibly uplifting and affirming for those who can sometimes feel alienated or alone. Fostering a sense of belonging is vital for everyone’s mental health, not just those in the LGBTQ+ community. Pride helps raise awareness and reduces stigma, making it easier for people to seek mental health support. By challenging stereotypes and promoting acceptance, we create safer spaces where individuals can thrive both mentally and emotionally. In this newsletter, you will also find a mental health article which explores the idea that often, people seek financial advice during very stressful times in their life, such as bereavement, moving home, financial trouble, etc. This stress can often be compounded if there are other factors that may make the process even more stressful - there are many neurodiverse queer people who navigate these overlapping experiences. Inclusivity that goes beyond a tick box exercise and truly considers everyone's unique needs can create a more supportive environment for all, including people working within the industry, and the people we serve. In the financial industry, it's crucial that we continue to advocate for and implement inclusive practices. According to the FCA’s Pride in Financial Services: Creating Inclusive Spaces for Everyone Dylan Kinsella Marketing Manager Paradigm
17 SUMMER PROTECT NEWSLETTER Financial Lives Survey, LGBTQ+ consumers are almost twice as likely to lack confidence in the UK financial services industry compared to the general population. It is important to consider the underlying circumstances that many people face that may result in this figure. LGBTQ+ customers are more likely to be worse off financially, with a higher likelihood of being in a lower paying job or not having financial support from family. This statistic underscores the need for more inclusive and understanding approaches within our field. Depending on the circumstances, LGBTQ+ customers or customers with mental health conditions could be classed as vulnerable customers. Characteristics of vulnerability may result in consumers having additional or different needs and may limit their ability or willingness to make decisions and choices or to represent their own interests. These consumers may be at greater risk of harm, particularly if things go wrong. Trans and non-binary individuals face unique challenges within financial services. For example, paperwork that doesn't match their gender identity can create significant barriers. This can cause issues with everything from opening bank accounts to applying for loans and mortgages. It can also complicate matters related to protection products, where discrepancies between one's legal documents and their lived identity can lead to delays and additional scrutiny. Whilst most Providers will provide cover for trans and non-binary people, it is important to consider what the process looks like with different Providers to minimise discomfort for trans and non-binary customers, making the process as stress-free as possible. Our protection helpdesk is on hand to help with any queries you may have around this. These difficulties highlight the importance of having systems and processes that are flexible and inclusive. Everyone who operates within the financial services industry needs to be proactive in understanding and addressing these challenges to ensure that all customers feel respected and supported. Personally, I've been fortunate not to face significant issues in our industry, but I know many who have. From assumptions about relationships to misgendering, these experiences can erode trust and confidence. I believe that when we approach inclusivity with genuine intent, we foster a culture where everyone feels seen, heard, and valued. Pride and mental health awareness are deeply intertwined. Both aim to promote acceptance, reduce stigma, and provide the support needed for individuals to lead authentic, healthy lives. As we continue to celebrate Pride and advocate for mental health, let's commit to creating spaces that welcome and uplift everyone. Together, let's continue to pave the way for a brighter, more inclusive future in financial services and beyond. If you or anyone you know is struggling with the issues discussed in this article, please speak to someone who can help, whether that is a family member, friend, or there are several charities that can help. You may find some of the resources here helpful. (source: https://www.mentalhealth.org.uk/explore-mental-health/statistics/lgbtiq-people-statistics) Scan to listen here
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