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Writing Group Risk business in 2019James Lawley | Business Development Consultant
15th January 2019
Disclaimer
This presentation has been designed for an audience with knowledge of financial products and nothing from it should be used with customers as a sole basis for making decisions on selling products. The presentation uses examples to demonstrate products, but these are for illustration purposes only, for actual customer illustrations please contact your Group Risk provider or Unum Representative.
Terms and conditions apply to all Unum products highlighted in this presentation and they may differ from provider to provider and over time.
Unum is not authorised to give advice. The material contained in this presentation applies only to Unum and its products. Whilst we have taken all reasonable steps to ensure that the information within this presentation is accurate and up-to-date, we cannot accept liability for any error or omissions.
Unum Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
Learning objectives
01 02 03
To understand the Group Risk market
opportunity and how to use Partnership Terms to
your advantage
The difference that Employee Assistance
Programmes and Added Value Services can make
to a proposition
How and when to use consultancy support and market insight to initiate conversations
with your clients
What are the typical Group Risk products offered in the market?
Group Income Protection
Income ProtectionProvides a financial benefit (percentage of salary) if an employee is unable to work through sickness or injury.
‘The top 3 causes for Unum Income Protection claims are cancer, mental ill health and musculoskeletal conditions1’
1. For Unum GIP claims admitted between 1st August 2017 and 31st May 2018, 27% were for cancer, 17% for mental ill health and 10% for musculoskeletal conditions
Critical Illness
Critical Illness CoverProvides employees with a lump sum payment if they are diagnosed with a listed medical condition or undergo a listed surgical procedure.
‘188,000 hospital visits are attributed to heart attacks in the UK each year1’
‘1 in 4 hospital visits attributed to strokes happen to people of working age2’
1. https://www.macmillan.org.uk/about-us/what-we-do/how-we-work/work-and-cancer2. https://www.bhf.org.uk/for-professionals/press-centre/facts-and-figures
Life Cover
Life InsuranceProvides a lump sum benefit (either a flat sum or multiple of salary) to beneficiaries or dependents after the death of an employee.
‘£8,905 is the estimated cost of death in the UK1. A cost which has risen faster than inflation for the past 13 years2.
1. Sunlife Cost of Dying Report (2017)2. ONS Deaths registered in England and Wales (2017)
Dental Cover
Corporate DentalProvides a financial benefit towards the cost of dental treatment ranging from routine check-ups and x-rays to root canal treatment and crowns.
‘415,000 people miss at least one day of work each year due to problems with oral health1.
1. http://www.bsdht.org.uk/news-1/work-missed-due-to-oral-health-problems-costs-the-uk-economy-more-than-36-million-each-year-1
What are the opportunities open to Advisers in Group Risk?
Assessing the market opportunity
76% 30%
40%of those off with long-term illness have had to apply for benefits or government support2
of small businesses are considering rolling out Group Risk / Employee Benefit products3
of all Unum quotes are for employers with under 50 employees4
5 million businesses have fewer than 10 employees1
1. House of Commons: Business Statistics (2018) 2. EmployeeBenefits.co.uk (2017) 3. Employee Benefits Trends Study (2017) 4. Unum Internal Data (2017)
Making the most of Partnership terms
1
2
3
4
5
Pooled arrangements for schemes with 3 – 100 employees
Whitewashing of medical loadings (up to Free Cover Level)
Increased Free Cover Levels for:Income Protection (£65k) and Life Insurance (£600k)
3 year rate guarantees
Joint client visits
Individual market vs Group market
Scenario
An employee is declined cover or charged an increased premium for Relevant Life or Individual Income Protection because of either:
• Previous medical conditions
• Medical underwriting
• Medical loadings
Solution
By offering a Group Risk product and Partnership Terms you may be able to offer a solution that has:
• Increased Free Cover Levels
• No medical underwriting requirements
• Whitewashed medical loadings
Talking about ‘Added value services’
Employee AssistanceProgrammes
Early intervention helplines
Cognitive Behavioural Therapy
Corporate partnerships
VocationalRehabilitation
Utilising Consultancy support
Experienced GroupRisk Consultants
Joint clientvisits and support
Telesalescapacity
Data drivenmarket insight
Working in tandem with market insight
Benchmarking Propensity to buyMappingExisting block analysis
Prioritised prospect lists, based on actual buying
behaviours
Potential target clients in your
vicinity
The comparative cover offered by a company’s
peer group
Prioritised prospect lists, based on actual
buying behaviours
Potential conversation starters
What are the reasons behind your current sickness absence?
What impact does sickness absence have on your business?
How do you prevent employee sickness absence?
Have you put in any steps to try and address the absence?
Do you know about Employee Assistance Programmes?
What processes do you have in place if an employee goes off sick?
Employer
Learning outcomes
01 02 03
Now is a better time than ever for Advisers to
talk to SMEs about Group Risk products –and Partnership Terms
are there to support you
Added Value Services and Employee Assistance
Programmes are potentially as important to the employer as the
product itself
Market Insight can provide you with an
inroad into your existing block and help to initiate conversations with new
and current clients
Questions?
James Lawley
07867 142863
Connect with me on LinkedIn
General questions:[email protected]