1. Maximising the health insurance opportunity The individual market An introduction for advisers

2. I don't have the right clientbank Its a difficult market to enter Its not rewarding enough Most common barriers to writing Health Insurance

3. Do I have the customers who would buy Health Insurance?

4. Source: Involve Millennium / fast.MAP. – Over 50s Tracker 2011 Buyers VALUE the reassurance health insurance provides

5. How much are the HEALTH COSTS insured against? SCANS Chest X-ray Ultrasound MRI CT Scan SURGICAL PROCEDURES Cataract Surgery Inguinal hernia repair Hysterectomy Cruciate repair Hip replacement Heart Bypass DIAGNOSTIC PROCEDURES Sigmoidoscopy Colonoscopy Gastroscopy Coronary angiogram Arthroscopy Source: The Private Healthcare UK The healthcare costs members insure against are significant Find Out What’s WrongTreat What’s Wrong Typical self-pay rates

6. The HEALTH COSTS insured against can be alarming! SCANS Chest X-ray£101 Ultrasound£268 MRI£516 CT Scan£615 SURGICAL PROCEDURES Cataract Surgery£2,480 Inguinal hernia repair£2.586 Hysterectomy£6,027 Cruciate repair£6,369 Hip replacement£10,385 Heart Bypass£14,000 DIAGNOSTIC PROCEDURES Sigmoidoscopy£1,496 Colonoscopy£1.914 Gastroscopy£1,529 Coronary angiogram£2,842 Arthroscopy£3,131 Typical self-pay rates Source: The Private Healthcare UK One hospital stay can cost more than £10k. Find Out What’s WrongTreat What’s Wrong

7. Top 5 concerns over the next 5 years 35-4950-6465-7475+ Staying fit and well 2111 Accident or illness 5423 Not having enough money 12=5 Not having a comfortable lifestyle 43 Being a burden on family & friends 4 No longer being able to drive 4=5 Maintaining independence 532 Grandchildren’s future 5 Parent’s wellbeing 3 Source: Involve Millennium / fast.MAP. – Over 50s Tracker 2011 Health remains a number 1 priority Members don’t actually want to use their plan !

8. Integrating Health and Wellness 3 Controllable Behaviours 4 Diseases of lifestyle 50 % of deaths worldwide The Oxford Health Alliance 3/4/50 model Impact of lifestyle choices Source: Oxford Health Alliance, 3four50.com, July 2015

9. Sources: 1.H.-C. Hung 2005 (J Nat Cancer Ins) 2.F.B. Hu, The New England Journal of Medicine, DIET, LIFESTYLE, AND THE RISK OF TYPE 2 DIABETES MELLITUS IN WOMEN, 2001 3.Fruit and Vegetables Consumption and Gastric Cancer: A Systematic Review and Meta-Analysis of Cohort Studies, 2009 4.4. C3 Collaborating for Health - The benefits of physical activity for health and well ‐ being, 2012 5. The American Cancer Society - The Tobacco Atlas, 2006 Impact lifestyle has on health Small changes to lifestyle can have a dramatic impact on the state of ones health Five servings of fruit and vegetables each day reduces the risk of: Cardiovascular disease by 28% 1 Type 2 diabetes by 24% 2 Some gastrointestinal cancers 3 Physical activity reduces the risk of: 4 colon cancer: the most active people are at 30% lower risk than the least fit; stroke by 25–30% among active individuals diabetes by 27% plus benefits for musculoskeletal and mental health. 5 million people die prematurely from tobacco use each year 5 By 2025, this figure could increase to 10 million. More evidence...

10. Lack of exercise Poor diet Smoking 3 Controllable Behaviours Cancer Diabetes Lung disease Cardiovascular disease 4 Diseases of lifestyle 50 % of deaths worldwide VitalityHealth is an integrated health and wellness solution, helping and rewarding members to make healthy lifestyle choices and providing high quality of care at the point of need. Traditional PMI Model focused here. Provides benefits to the less than 20% that claim every year. Source: Oxford Health Alliance, 3four50.com, July 2015 VitalityHealth –benefits for all = appeals to wider audience.

11. VitalityHealth’s approach to health lends equal weight to prevention and sickness... SICKNESS Primary care Rehab Acute Chronic Hospital WELLNESS Screening Nutrition Smoking Cessation Mental Wellbeing Physical Activity

12. SICKNESS Primary care Rehab Acute Chronic Hospital...but is truly integrated... WELLNESS Screening Nutrition Smoking Cessation Mental Wellbeing Physical Activity

13. 5 good reasons to choose VitalityHealth Helping and rewarding our members for making healthy choices Members choose their consultant, not us! No consultant shortfall guarantee on eligible treatment with recognised consultant Members don’t have to go public before they go private control premiums through engagement with Vitality

14. Plus... When your client takes a VitalityHealth plan we double their Life policy cashback! Single life: from £100 to £200 Joint life: from £200 to £400 makes it easier, cheaper and more rewarding to be healthy

15. With VitalityHealth – you are offering an award winning product

16. People who buy VitalityHealth are just like a typical IFA clientbank! Because it offers members more than traditional PMI, its appeal is more widespread. 6% 7.5%4%4.5% 6%11%13%22%15% Because healthy living is a smart choice Because there is always time to be healthy Because when its your family’s health you don’t want to wait Because when its your family’s health you don’t want to take risk Because prevention is better Why?

17. You are already advising these clients... And you're already having conversations about health/illness when you talk about SIC and IP. So it doesn't require a big change/extension to the advice process.

18. Protection clients Greater propensity to buy / have healthcare Naturally fits sales process Fast diagnostic could trigger SIC claim Increase deferred period on income protection Pension clients Help make retirement healthy Route into employers and further cross sell Wealth clients Wealth is nothing without health 62% HNW customers have Health Insurance Potential business owners, leading to further cross sell...and it’s not just your protection clients that would buy (or already have) healthcare.

19. Vitality in action

20. How can we help remove the barriers?

21. Comprehensive support Over 150 Field Based Broker Consultants (covering Vitality Heath & Life) Support material / tools targeted for new to market brokers Online training and accreditation through the Vitality Academy Range of advice and commission models Backed up by a dedicated team of highly experienced Healthcare Specialists Backed up by a dedicated team of highly experienced Healthcare Specialists Comprehensive support Vitality has made a significant investment in helping brokers capitalise on the health opportunity in their existing clientbank

22. Robust training and accreditation  Unique online learning and accreditation system  Continued Professional Development log  Two levels: Foundation : providing a sound level of product knowledge Advanced : through understanding of Lifestyle Health Insurance and how this differs from traditional health insurance  Potential uplift in commission rates and investment in CII IF7 Healthcare Product exam available Comprehensive learning & development support

23. Making it rewarding for your customer, and rewarding for you too!

24. Lifestyle Health Insurance advice models Standard Advised model Member provides the advice under a multi provider model 45% Initial with 5% renewal commission Single Tie model Member only advise on the VitalityHealth product range Tier 1 - 60% Initial Tier 2 - 55% Initial Tier 3 - 50% Initial All with 5% renewal commission 2 Year Terms Member make initial sale and VitalityHealth take over renewal process 90% Initial, subject to 2 year clawback period. No renewal Lead referral Leads handed to VitalityHealth Consumer Telesales to make the sale 40% initial commission subject to 2 year clawback. No renewal VitalityHealth can offer advisers a host of advice / remuneration options coupled with an intensive training programme through the Vitality Academy Range of commission options on offer

25. The ‘business case’ Attractive hourly rate Average case of £1,200, taking 2 hours to advise and submit an application: Standard terms = £270 per hour Tier 1 Single tie = £360 per hour 2 year terms*= £540 per hour Additional annual income created Advise on 2 cases per month, creates extra annual income of: Standard terms = £13k Tier 1 Single tie = £17K 2 year terms*= £26k Notes All figures for illustration only and based on initial commission only. 5% renewal is also payable. * Subject to 2 year clawback and no renewal commission payable

26. I don't have the right clientbank You don’t need to claim to benefit from your VitalityHealth plan. Appeals to a much wider customer base than traditional PMI You already advise these customers Its a difficult market to enter Support of a local face to face Business Consultants Vitality Academy to support learning Range of sales tools Its not rewarding enough Can be incremental to establish sales process Supports customer loyalty Range of attractive commission models Back to those reasons for not advising... With our support, you can realise the healthcare cross-sale opportunity in your clientbank