In the last few months the phrase “G-day” has been thrown around like confetti in the protection world.
There have been various estimates about how much protection premiums will rise by come 21 December, with some expecting prices to rocket by up to 25 per cent, and providers have prepared very differently for “G-day”. Some, like LV= and Zurich, have decided to switch to gender neutral premiums early, while Ageas has decided to allow customers to enter into a contract before the underwriting stage – instead of after – in order to secure lower rates.
So while most of us are aware that premiums are set to rise, keeping track of how each provider has approached “G-day” can be a nightmare.
Lifesearch has created a matrix for Money Marketing, as featured in this week’s issue, giving you everything you need to know to ensure your clients do not miss out on lower rates while they are still available.
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The Finance & Technology Research Centre’s Protection Forum has also put together a matrix showing how each provider has planned for “G-day” to ensure advisers can secure gender specific rates for their customers.
In total, F&TRC asked more than 50 questions about their plans in the run up to 21 December, the date when it becomes illegal for insurers to use gender as a factor in setting premiums. The matrix asks providers whether full underwriting information needs to be obtained before 21 December, whether policies can have a start date after G-day, how long quotes are valid for and the date from which providers will switch to gender neutral rates.
In addition to questions about new business submission and processing, the matrix provides information on the extent of support and their approach to trusts in the run-up to G-day.
The matrix is available free to all advisers.
F&TRC managing director Ian McKenna says: “By assembling a detailed analysis of each insurers plans, that can be compared side by side we are providing a central place where advisers from any firm can check and compare where each provider stands on the key G-day issues.”
London & Country sales director Michael Aldridge says: “The F&TRC G-day readiness matrix helps simplify and summarise in one central place the raft and complexity of different plans and processes providers have announced – it will prove an invaluable tool for the adviser community in the run up to G-day.”
Paul Thomas is Money Marketing’s mortgages and protection reporter.
Update: Since the table was produced, LV= has announced it will switch to gender neutral rates on 10 December, instead of 1 December. Also, Legal & General plans to switch to gender neutral pricing on 21 November, not 21 December.