1. An industry in need of a shake-up
Rob Carr, Adviser Development Manager
Learning and Development Events

2. LEARNING OBJECTIVES
Identify good and bad approaches to creating long-term client relationships, and new ways to grow the protection market 
Understand the importance of simplicity in creating and growing consumer trust
Discuss the importance of certainty in our industry – certainty claims will be paid, and paid quickly

3. DIFFERENT ATTITUDES

4. TYPICAL CLIENT OBJECTIONS
I have friends and family who will support me
I have savings
My employer will
look after me
It’s too expensive
The state will help
I don’t need it

5. CONSUMERS ATTITUDE TO PROTECTION
Insurers never
pay out
Insurers want
to avoid paying claims
I’m not
treated fairly
It’s confusing
It’s complicated

6. Protection insurers pay out record-breaking £5 billion in claims
THE REALITY
Protection insurers pay out record-breaking £5 billion in claims
30 April 2018
Insurers pay out £13.9 million per day in income protection, critical illness cover and life assurance
97.8% of claims made across group and individual protection are paid
£340 million increase year on year
ABI, Claims paid 2017

7. CONSUMERS ATTITUDE TO PROTECTION
A simple observation = =
Complexity
Doubt
Mistrust

8. DEFINITIONS ABI example heart attack definition
Heart attack – of specified severity
Death of heart muscle, due to inadequate blood supply, that has resulted in all of the following evidence of acute myocardial infarction:
Typical clinical symptoms (for example, characteristic chest pain).
New characteristic electrocardiographic changes.
The characteristic rise of cardiac enzymes or Troponins recorded at the following levels or higher - Troponin T > 200 ng/L (0.2 ng/ml or 0.2 ug/L) - Troponin I > 500 ng/L (0.5 ng/ml or 0.5 ug/L)
The evidence must show a definite acute myocardial infarction.

9. ABI+ example heart attack definition
DEFINITIONS
ABI+ example heart attack definition
Heart attack – of specified severity
Death of heart muscle, due to inadequate blood supply, that has resulted in all of the following evidence of acute myocardial infarction:
The characteristic rise of cardiac enzymes or Troponins; and
New characteristic electrocardiographic changes or other positive findings on diagnostic imaging tests.
The evidence must show a definite acute myocardial infarction.

10. “I’ve had a heart attack”
THE CLIENT’S DILEMMA
“I’ve had a heart attack”
“But is it the right type?”

11. HEART ATTACK Would a better way be? Heart attack
Death of heart muscle, due to inadequate blood supply, that has resulted in a definite diagnosis of a new myocardial infarction by a UK Cardiologist.
In other words, if a UK Consultant says the policyholder has had a heart attack, the claim would be paid.

12. STROKE Would a better way be? Stroke
A definite diagnosis by a UK Neurologist of a stroke with clinical symptoms that have lasted at least 24 hours.
In other words, if a UK Neurologist says the policyholder has had a stroke, the claim would be paid.

13. of cancer cases in England were diagnosed at stage 41
TERMINAL ILLNESS
Sometimes it can be hard for doctors to predict how long patients with certain terminal illnesses will survive, even in the late stages
Can’t be sure if death will occur within 12 months
For instance
Stage 4 cancer
Motor neurone disease
Parkinson-plus syndromes
This can mean a terminal illness claim is declined or delayed
In 2014,
20%
of cancer cases in England were diagnosed at stage 41
20%
of woman diagnosed with stage 4 breast cancer will be alive 5 years after diagnosis2
1: 12 February 17
2: Livestrong, Dr C Richard Patterson, Aug

14. FAIRNESS. REDEFINED.

15. FAIRNESS. REDEFINED.
Utilities, mobile phones, home insurance, savings accounts, etc.
Protection providers, too?
Critical illness upgrades only available to new customers
Leaves advisers and customers with difficult choices
Cancel existing cover and start again?
Spread the risk – add another policy?
Fingers crossed
Shouldn’t existing customers should be treated as well as new ones?

16. ADVISERS’ OBJECTIVES Act in your clients’ best interests Manage
Treat your
clients fairly
Manage
conduct risk
Does that mean best price?
Or optimising the chance of the client being able to make a problem-free claim?

17. £ PROBLEMS AT CLAIM “My husband has just died. Are we insured?
When can I get the money?”

18. 82.5% of all probate cases take at least 2 months
PROBATE DELAYS
82.5% of all probate cases take at least 2 months
Legal Services Board probate settlement survey

19. PROBLEMS AT CLAIM
“My partner just died. He didn’t have a will. He had his own life cover.
Am I entitled to it?”

20. = = + + BENEFITS OF A TRUST Writing a policy CERTAINTY in trust
No delays to family getting the pay out +
Writing a
policy
in trust
CERTAINTY
No unnecessary IHT bill = = +
Reassurance that the right people get the pay out
For you, and for your clients

21. of policies are placed into trust
PROTECTION AND TRUSTS
Why are so few policies placed into trust?
Is it too complex?
Do customers not understand how important it is?
Online functionality hasn’t made an impact
Fewer than
10%
of policies are placed into trust

22. PAYOUT PLANNER Uses contract law Nominate beneficiaries when applying
Creates carve-out of death benefit
On death, sum assured is outside the estate
Paid immediately to beneficiaries
Avoids probate delay and intestacy issues

23. WISH YOU HAD MORE TIME?
“If I could give you more time or more clients, which would you choose?”
Ken Davy

24. RESERVED COVER Single set of underwriting questions
Additional cover placed in reserve
Reserved Cover can be added for up to 27 months from when the policy starts
On same terms as initial cover

25. = = FINALLY… We’re an under-insured nation
Many people don’t trust protection providers
Protection design should support the advice process = =
Clarity
Understanding
Confidence 25

26. LEARNING OBJECTIVES
Identify good and bad approaches to creating long-term client relationships, and new ways to grow the protection market 
Understand the importance of simplicity in creating and growing consumer trust
Discuss the importance of certainty in our industry – certainty claims will be paid, and paid quickly

27. OUR PROPOSITION Children’s Critical Illness Protection
Fracture Plus Protection
Life
Protection
Core
products
Optional
extras
Level, increasing, decreasing, family income options
Can be added to Life Protection or Critical Illness Protection

28. e: advisers@guardian1821.co.uk w: guardian1821.co.uk/advisersm: e:
w: guardian1821.co.uk/advisers
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
Guardian Financial Services Limited is registered in England and Wales under number Registered office: 11 Strand, London WC2N 5HR.