1. Protect ACI 2015 Ben Heffer, Insight Analyst – Life & Protection

3. Creditor – a product update

4. Creditor insurance products 2008 – 2012

5. Creditor insurance products 2008 – 2015

6. Creditor insurance products 2015 Mortgage PPI45 products; 33 providers Short Term IP53 products; 34 providers Personal Loan PPI 4 products; 4 providers Credit Card PPI 3 products; 4 providers

7. Closed to new business CUNA Mutual – Income Protection Mapfre Assistance – Income Protection Columbus Direct – Income Insurance Berkeley Alexander - SafetyNET Tipton & Coseley – MPPI British Money – Safety First Market Harborough Building Society – MPPI Chorley Building Society – MPPI Leeds Building Society – Short Term Income Protection iSmart - Short Term Income Protection

8. Short term income protection  53 products  17 underwriters  34 providers  Banks/building societies  Brokers/broker networks  Web distributors  Insurers

9. STIP provider types 2011 - 2015

10. STIP – products by distribution channel

12. STIP – typical policy  ASU or AS  12 month benefit period  50% income or £2,000pm  30/60/90 day excess  Optional BTDO  Marketed D2C

13. Prospects for the creditor market ?

14.  Legislation and regulation  Reputation  Reasons for optimism

15. Mortgage Market Review (MMR)  Mortgage interviews taking three times longer  Less disposable income for protection  But borrowers should have a strategy against not being able to service loan

16. Mortgage and protection? Sources: CML; SwissRe

17. Reputation

18. Number of PPI complaints to FOS Source: FOS

19. Number of PPI complaints (cumulative) Source: FOS

20. PPI – FOS uphold rates Source: FOS

21. Protection market outlook  Increase in new life, critical illness and income protection policies sold year to 2014  Increase in average sums assured for life, and critical illness cover  Decrease in average annual benefit for IP  1yr benefit term  2yr benefit term  Full to retirement Source: SwissRe Term and Health Watch

22. Positive vibe

23. ABI – Income Protection Initiative

24. Final thoughts

25. Thank you Ben Heffer, Insight Analyst – Life & Protection Web: www.defaqto.com Email: bheffer@defaqto.com Tel: 01844 295 447