Direct Life Manager's Briefing

Protection Advice models – What can advisers expect? Background Distributors Selling Protection Challenges faced by them to increase amount of Protection sold What solutions are going to be available in the future?

…….life made simple

DLPS thought process when building solutions Some beliefs Life insurance should be easy to understand, familiar and straightforward The typical customer should be able to compare and choose the product that suits their needs Most people should not need advice, but some will want it Different people will want different amounts of help, in different ways What is easy to buy is easy to sell ‘Simple’ products should not be more expensive than ‘standard’ products We should be simplifying the process of buying ‘standard’ or adviser equivalent products Portal developments should simplify the advisers research, selection and application processes

….what we do at Direct Life Systems Application services Administration Services Tele-Sales Services Own quotes engine D2C quote & apply Intermediary quote & apply Internal workflow Bespoke CRM MI support Tele-underwriting Online apply Paper (into online) FCA Regulated Client liaison Adviser liaison Chase o/s info Manage expectations Point of contact Post completion issues Lapse management Outbound sales Inbound sales LifeQuote support LifeQuote promotion Advised proposition Some of the changes we have introduced Tele-Interviewing – Collect medical information, great at getting full information, recording all calls simplifying process Developed consumer online apply - many don’t want a phone call Developed Quote+ and Buy Now - enabling simpler lives to buy from the comparative screen, with immediate cover Our Online next steps Cover not products to allow people to identify their needs Data science to provide insight and guided information Automated advice to offer full engagement online Replace traditional applications with data driven underwriting Innovate with products designed for Millennials Our Adviser next steps Data science based calculators of needs Advanced Policy comparison Documenting needs, demands and recommendations Automated recommendation

Typical categorisation of UK Protection Distributors Whole of Market D A (generalists) Wealth Specialists Networks – Whole of Market, Restricted (multi-tie), Single Tie Bancassurance – Building Societies Mortgage / Estate Agents Protection Specialists – Advised Protection Specialists – Non-advised Retail / Affinities Aggregators Direct

Potential Protection buyers

Major Protection distributors

How to compare CI products? Comparison of high level illnesses covered and definitions that are ABI or ABI+ Ancillary benefits and support services Evidence of claims payment history Financial strength of insurer Product price GIOs Appropriateness for client based on; Age, sex, term, existing medical history, family history, children’s benefits

How to compare CI products? Comparison of high level illnesses covered and definitions that are ABI or ABI+ Ancillary benefits and support services Evidence of claims payment history Financial strength of insurer Product price GIOs Appropriateness for client based on; Age, sex, term, existing medical history, family history, children’s benefits …….its complex……………………

How to compare CI products? Comparison of high level illnesses covered and definitions that are ABI or ABI+ Ancillary benefits and support services Evidence of claims payment history Financial strength of insurer Product price GIOs Appropriateness for client based on; Age, sex, term, existing medical history, family history, children’s benefits …….its complex…………………… Tools available to help advisers

…what’s a better definition? Insurer 1 Stroke – resulting in permanent symptoms Death of brain tissue due to inadequate blood supply or haemorrhage within the skull resulting in permanent neurological deficit with persisting clinical symptoms. For the above definition, the following are not covered: -transient ischaemic attack Insurer 2 Stroke Death of brain tissue due to inadequate blood supply or haemorrhage within the skull resulting in either: -permanent neurological deficit with persisting clinical symptoms: or -definite evidence of death of tissue or haemorrhage on a brain scan and neurological deficit with persistent clinical symptoms lasting at least 24 hours. . The following are not covered: -transient ischaemic attacks (TIA) -death of tissue of the optic nerve or retina/eye stroke

Automate the process – facilitator or “robo-advice”? Factfind Collect relevant data Enhance with other tools eg Open Banking , ONS data, relevant data sources for risk assessment Model the needs Based on FactFind Data and other data sources Prioritise needs and identify in an engaging way Automated recommendation Documentation and Output Documenting needs, demands and recommendations in an engaging customer friendly way Automated output and compliance audit Automate product selection Agreed advice model or parameterised for adviser Ability to flex away from “ideal advice” to match current budgets Simplify the application process What data do we need? What other information could be used to assess risk? Can we get data straight from GPs if necessary? What data do we have on the customer that they would allow us to access?

Protection Advice ( or Non-Advice ) models – What can advisers expect? Background Distributors Selling Protection Challenges faced by them to increase amount of Protection sold What solutions are going to be available in the future? Much better tools to support research and analysis Acceptance criteria different Need to be paid more in a different way to distribute products – lifetime product value Need to distribute products through different business models in addition to advisers

Direct Life Manager's Briefing