1. Group Risk Market update
Katharine Moxham Spokesperson, GRiD Protect Association Meeting 18 November 2016

2. What is Group Risk? Highly valued but relatively inexpensive
Umbrella name for 3 Employer sponsored benefits
Group Life Assurance
- Group Income Protection
- Group Critical Illness
Highly valued but relatively inexpensive
Often insured
What is Group Risk?
Fewer medical details & “Once and Done” underwriting
Gives employees access to financial protection
Can legally cease at 65/SPA
Free or reduced cost to end user
Usually compulsory but can also facilitate access to protection cover through voluntary, flex and affinity schemes

3. Financial Life Line GL GIP GCI
Provides a benefit on employee’s death - tax free lump sum up to LTA/taxable dependants’ pension
Benefits in excess of LTA through “excepted” route GL
Provides a continuing income during employee’s illness or injury – paid through payroll in normal way
Used to cover employer’s promise of long term sick pay
GIP
Pays a tax free lump sum to employee on diagnosis of one of a defined list of serious medical conditions or on undergoing one of a defined list of surgical procedures
GCI

4. What’s New?

5. A new, modern website

6. New PR Value Next Refreshed and reinvigorated For members
Message
For members
Value
Thinking further ahead
Next

7. The broader picture

8. Networks remain in place
Brexit
Legislation
Business as usual
Remains in place
Multi-national pooling
ABI
Networks remain in place
“The UK insurance and long-term savings industry is strong and built to protect customers from market uncertainty and shocks.” Huw Evans, Director General

9. Employer Sponsored Group risk protection
Deficit Reduction
Increased Productivity
7 Day NHS
Ageing Workforce
Reducing the disability employment gap
Employer Sponsored Group risk protection
Welfare Reform
Fit for Work Service
Health & Wellbeing
Mental health crisis
DH Responsibility Deal/Workplace Wellbeing Charter
Work Foundation Health at Work Policy Unit
Workforce fit for the future
Challenges for the UK government
New joint DWP/DH
Work & Health Policy Unit

10. State support is changing
From 6 April 2017 Employment & Support Allowance for new claimants in WRAG = Job Seekers Allowance
(£1,500pa less)
FOS:
Fair & Reasonable
Upheld Complaint 2014
“...reasonable for only the amount of ESA
Mrs H actually received to be deducted...not a generic amount.”
State support is changing
Is traditional group income protection benefit formula with a generic state benefit deductible still appropriate for 21st century?
Advisers will guide employers on the choices available

11. Came into effect 12 August 2016
Introduces duty of fair presentation (replacing duty of disclosure)
Insurance Act 2015
Employers must disclose every material circumstance which they “know or ought to know”
Or give enough info to let insurer know needs to make further enquiries
Clarifies whose knowledge should be sought
Makes new proportionate remedies available to insurers where breach occurs
Onus on employers & advisers to ensure right info made available to insurers

12. Opportunities to influence
Pensions Tax Relief Consultation
Salary Sacrifice Consultation
DWP/DH Improving Lives: The Work, Health & Disability Green Paper
GRiD made case for delinking group life from pensions tax regime
GRiD made case for group life and group income protection to be excluded from proposed changes
Role group income protection can play in supporting employers/employees has been recognised
Workshop to inform GRiD response