The protection market has seen a flurry of product launches in recent weeks, with Beagle Street and Guardian bringing much needed change and innovation to the sector.
Declining provider numbers and concerns around consumer accessibility and affordability means new market entrants and propositions help to broaden consumer choice and better support advisers working in the protection market.
Historically a direct-to-consumer provider, Beagle Street’s long-awaited entry into the advised protection market is particularly significant. The launch comes at a time when advisers are facing a shrinking pool of providers and limited competition following the departure of HSBC Life and others from the market in recent years.
Beagle Street’s move into the advised space will see the OneFamily owned business offer a new adviser proposition featuring life and critical illness cover after an extensive pilot programme involving a select number of intermediary firms.
PHASED ROLL-OUT
The first stage, launched last week, includes an entry-level life and critical illness (CI) proposition, the latter of which covers Alzheimer’s, heart attack and stroke. All the products are supported by a range of added-value services, including Reframe Cancer, Square Health for 24/7 virtual GP access and RedArc support.
“In a realm where there has been a monopoly of providers in the protection market, it’s refreshing to see a new provider enter the market with a proposition that has been built with feedback from advisers,” says Nathan Wootton, operations director at Waddle Insurance.
Wootton adds that while the entry-level product means it is still early days for the provider, Beagle Street’s addition to the market can only be a good thing for the protection industry.
“This is the first phase of Beagle Street’s protection proposition and it’s a good start. They are filling the gap left by exiting providers and building on that. Fast forward 12 months from now and I think their addition to the protection market will be extremely valuable,” he says.
GUARDIAN EXPANDS OFFERING
Guardian’s expansion of its low-cost CI offering has also developed the market further by introducing a more affordable “core” alternative to its more comprehensive CI product. Its Critical illness Essentials and Combined Life & Critical Illness Essentials cover have also been designed in response to adviser feedback and have been warmly received by the market.
“Guardian has come to the market with a positive attitude and its core plan will provide those looking for lower-cost CI cover from a quality provider with greater options,” says Alan Lakey, director at CIExpert.
“In terms of conditions covered, it beats the opposition with its definitions on three conditions – bacterial meningitis, pulmonary hypertension and third-degree burns, the latter of which is the best in the market paying out on 10% of the head and 20% of the body,” he adds.
FURTHER MARKET DEVELOPMENTS
Aviva has partnered with Tesco to provide CI alongside life cover to consumers. The product offers children’s cover and pays up to the lower of £25,000 or 50% of the policy value where a qualifying condition is met.
Although offered directly to consumers, advisers say raising awareness about CI is one of the key benefits of the partnership. “There will always be people who will never see an adviser and if this partnership gets buying people into the concept of protection, then that is great,” says Lakey. “While it may not be as good as an advised plan, it certainly opens the doors for a broader discussion further down the line with any potential clients.”
Wootton agrees. He says: “It’s important that we put a positive spin on partnerships such as these as it helps to raise awareness of CI and protection as a whole. While it may not offer the same level of coverage as some advised plans, raising awareness and normalising CI as a concept can only be a good thing.”
Both Lakey and Wootton also praised the income protection (IP) refresh from Royal London in April this year, which saw the provider make significant changes to its occupation classes. The changes have been implemented to better reflect the reality of modern working lives, including freelancing, gig workers and multiple occupations, and sees the terms for 545 occupations opened up and pricing for 162 occupations lowered.
