Growing protection market requires paraplanner research
25 November 2019
Matt Ward, communications director, AKG, examines the evolving research and due diligence requirements in the protection market
The protection market is evolving and represents an interesting space at present with a range of provider types involved – including large and small proprietary insurance companies, friendly societies, mutuals, marketing firms and reinsurers – particularly targeting intermediary business opportunities alongside other channel development and strategic partnership opportunities.
And, bucking the consolidation trend seen in other markets, there have been some new entrants in the space in recent times.
As a whole, this group of providers is working to educate the intermediary market about the perceived ‘protection gap’ and to encourage intermediary businesses to optimise protection opportunities with clients.
While individually, providers are targeting new intermediary business opportunities for their specific product line(s) and then competing against their peers for market share within each of these product line categories.
Providers might offer individual, business or group terms and protection product types might include, for example, income protection, critical illness, life assurance, whole of life and menu plans.
Protection brands, including some of the following, might be under consideration by intermediary businesses when composing or reviewing product/proposition panels:
Aegon, AIG, Aviva, British Friendly, Canada Life, CignPost Life, Cirencester Friendly, Dentists’ Provident, Guardian, Holloway Friendly, Legal & General, LV=, MetLife, Old Mutual Wealth, Royal London, Scottish Widows, The Exeter, Vitality, Zurich.
Hence there is a requirement for intermediary businesses to carry out robust research and due diligence exercises when working on these protection product/proposition panels. Selection criteria for consideration might include the following:
From an AKG perspective our independent ratings and reports, designed specifically for use in the intermediary market, are produced to support provider financial strength related considerations as a component part of research and due diligence processes.
Protection providers are assessed and rated within AKG’s ‘Provider’ sector.
Protection providers’ financial strength ratings ca be accessed on the AKG Rating Portal and AKG assessment reports purchased at www.akg.co.uk.
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