1. Group Watch and Term & Health Watch 2017
Ron Wheatcroft, Protect Association, 19 May 2017

2. Group Watch 2017 - high level data summary

3. Group Watch 2017
In 2016, the number of people covered increased by almost 520,000 (516,365), an increase of 4.5%
Long-term DI  6.3% (+132,930)
Lump sum death benefits  4.3% (+366,464)
DISP  6.8% (-23,151)
Critical illness  7.3% (+40,122)
Benefits in force have grown too
Long-term DI  9.1% (+£5.9bn per annum)
Lump sum death benefits  4.4% (+£58.0bn)
DISP  6.8% (-£303.6m per annum)
Critical illness  9.0% (+£2.9bn)

4. Group Watch 2017 Premiums have gone up too overall
Long-term DI  5.3% (+£34.1m)
Lump sum death benefits  4.0% (+£44.9m)
DISP  6.2% (-£10.7m)
Critical illness  11.5% (+£9.8m)
A good picture for policy numbers
Long-term DI  0.0% (+57)
Lump sum death benefits  3.5% (+1,675)
DISP  10.3% (-306)
Critical illness  8.1% (+249)

5. Group risk total in-force premiums, 2016
Death benefits
Long-term DI CI
Total
Premiums
1,329,872,581
681,784,625
94,889,094
2,106,546,300

6. Group long-term disability income – split of policies by size of membership, 2016
Number of members
Number of policies
% policies in force
Fewer than 10
5,550
32%
10-49
6,225
36%
50-250
3,590
21%
Greater than 250
1,803
11%

7. Group death benefits – number of people covered, 2012 - 2016
2013
2014
2015
2016
Registered
7,468,747
7,724,906
7,765,281
7,971,060
8,183,943
Excepted
344,889
334,742
391,438
490,911
644,492
DISP
575,943
514,132
494,870
399,121
375,970

8. Term & Health Watch 2017 - high level data summary

9. 2016 in summary Volume Premium Term assurance 5% Term assurance 5.5%
Term only 7.1%
Term with CI 0.6%
Critical illness 1%
Accelerated CI 0.6%
Stand-alone CI 7.2%
Income protection 9.8%
Whole life 2.6%
Guaranteed acceptance 5.8%
Fully-underwritten -22.3%
Term assurance 5.5%
Term only 8.6%
Term with CI %
Critical illness 1.6%
Accelerated CI 1.5%
Stand-alone CI 3%
Income protection 11%
Whole life 2.7%
Guaranteed acceptance 10.1%
Fully-underwritten -10.4%

10. Distribution split
Distribution by product line, % market share 2016*
Tied
Directly-authorised
Direct
Bancassurance
Term assurance
13.1
68.1
10.7
8.1
Critical illness (CI)
16.8
70.0
4.0
9.2
Income protection (IP)
17.9
79.2
0.5
2.5
Distribution by product line, % changes 2016/2015
Tied
Directly-authorised
Direct
Bancassurance
Term assurance
10.4
-1.6
16.5
-16.9
Critical illness (CI)
12.8
-1.2
-6.7
-7.0
Income protection (IP)
0.1
-0.6
15.2
17.7
*Directly-authorised refers to any business of that nature, including IFAs. It isn't pure IFA business.

11. Total new individual term sales split by LTA, DTA, family income benefit and other term sales, by volume
Product type
2014
2015
2016
% change 2016/2015
LTA without CI
522,649
555,907
594,216
6.9
Relevant life
16,372
21,790
27,746
27.3
LTA with CI
211,694
203,945
201,614
-1.1
DTA without CI
239,001
225,582
247,213
9.6
DTA with CI
232,043
196,174
199,253
1.6
FIB without CI
25,748
24,680
25,803
4.6
FIB with CI
2,770
2,854
2,599
-8.9
Other term without CI
29,165
24,766
18,311
-26.1
Other term with CI 6 88
2,212
2,413.6
Total
1,279,448
1,255,786
1,318,967
5.0

12. Top five product providers for new individual term sales (including term with CI), 2015–2016, by volume
2016
Rank
Provider
Total
% of total
2015
position 1
Legal & General
429,524 33 2
Aviva
190,364 14 3
Royal London
135,699 10 5 4
Zurich
95,054 7
Friends Life
91,175
71% of market share with top 5 providers
2015
Rank
Provider
Total
% of total
2014 position 1
Legal & General
450,737 36 2
Aviva
192,505 15 3
Friends Life
112,155 9 4
Zurich
100,327 8 6 5
Royal London
97,810

13. Top five providers for new individual CI sales, including stand-alone and accelerated life cover, 2015 – 2016
2016
Rank
Provider
Total
% of total
2015
position 1
Legal & General
122,856 28 2
Aviva
52,421 12 3
VitalityLife
52,317 4
Friends Life
49,586 11 5
Royal London
43,845 10
74% of market share with top 5 providers
2015
Rank
Provider
Total
% of total
2014 position 1
Legal & General
131,430 31 2
Friends Life
63,206 15 3
Aviva
55,310 13 4
VitalityLife
51,528 12 5
Royal London
37,246 9 6

14. Total new individual IP sales by volume, 2012 – 2016

15. New individual IP sales split by duration of limited payment term, 2015–2016 by volume
Product 
2015
2016
% Change 2016/2015
IP to “retirement age” (excluding LPT)
66,167
58,661
-11.3
Income protection 1 year
2,383
3,314
39.1
Income protection 2 year
33,271
46,041
38.4
Income protection 5 year
2,360
1,948
-17.5
Income protection 'other'
3,121
7,850
151.5
Percentage of sales to retirement age equal to the total written to a LPT
50.2% of new IP business LPT (38% in 2015 and 34% in 2014)

16. Top five product providers, new individual income protection sales by policy count, 2015-2016
Rank
Provider
Total
% of total
2015 position 1
LV=
32,621 28 2
Friends Life
27,643 24 3
Legal & General
10,311 9 4
Royal London
9,628 8 5
Aviva
8,224 7
2015
Rank
Provider
Total
% of total
2014 position 1
LV=
34,470 32 2
Friends Life
26,265 25 3
Legal & General
10,379 10 4
Aviva
6,598 6 7 5
Royal London
5,840

17. New WL sales, unit-linked, non-linked and guaranteed acceptance plans, 2012-2016 by volume
Product type
2012
2013
2014
2015
2016
Guaranteed acceptance
314,869
246,326
243,181
261,137
276,164
Fully-underwritten
29,241
27,097
30,810
32,937
25,605
Total
344,110
273,423
273,991
294,074
301,769
Guaranteed acceptance plans, usually – but not always – targeted at the over 50s market or with the express purpose of paying for a funeral or expenses on death
Fully-underwritten non-linked products, such as those designed to mitigate inheritance tax and unit-linked products such as whole life with CI.

18. Fully-underwritten WL sales, 2014-2016 by volume
Distribution channel
Non-linked
2014
2015
2016
% change 2015/2016
Directly-authorised
29,208
29,545
21,698
-26.6
Tied
966
2,682
2,991
11.5
Direct
624 96
117
22.2
Bancassurance 12
614
799
30.1
Total
30,810
32,937
25,605
-22.3
Product
Average sum assured (£)
Average premium (£)
Guaranteed acceptance
4,224
255
Fully-underwritten
109,652
1,264
Product
Average sum assured (£)
Average premium (£)
Guaranteed acceptance
4,224
255
Fully-underwritten
Range of average sum assured (£)
Range of average premium (£)
Max
811,655
3,816
Min
21,801
541

19. Top five product providers, new individual whole life sales, 2015-2016
Rank
Provider
Total
% of total
2015
position 1
SunLife
118,051 39 2
Legal & General
34,986 12 3
Scottish Friendly
33,216 11 - 4
Aviva
21,452 7 5
Royal London
18,932 6
2015
Rank
Provider
Total
% of total
2014 position 1
SunLife
137,619 47 2
Legal & General
35,885 12 3
Aviva
29,719 10 4
LV=
19,807 7 5
VitalityLife
18,218 6

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