View more on these topics

Lifestyle is set to dictate cover for younger lives

Protection underwriters predict that lifestyle factors will increasingly be taken into account in protection policies for youn- ger lives.

Axa chief underwriter Mike Taylor says one of the most common causes of death in the 20 to 30 age bracket is road accidents and questions about whether or not an applicant drives and how many points they have on their licence can be more relevant than health factors at the underwriting stage.

Taylor says: “Historically, it was a one-size-fits-all approach but people are different and we want to tailor that to different groups.

“Lifestyling and tailoring is where we are automatically going to end up and it is only a couple of years way.”

RGA UK business development manager Mick James says it seems like a natural evolution for companies to start asking questions which are specific- ally tailored to age groups, replacing health-related questions with accident risk fact- ors instead.

He says: “I can see that tom-orrow’s market will be much more sophisticated, in which questions are asked of which customers.”

James says he can potentially see a point at which no health- related questions are asked of young people.

He says: “There are examples in the Australian markets where this happens in conjunction with a pre-existing conditions exclusion. This kind of a product could have potential for young consumers in the UK.”

Munich Re chief underwriter Paul Gyseman says an underwriting process tailored specifically to young lives in the next two years “is highly likely”.

He says: “They will not only centred around lifestyling but other risk factors such as postcode, occupation and salary.

“But one of the drawbacks will be insurers’ ability system-wise to cater for such changes.”


Profits at Cavanagh plunge by 87%

Cavanagh Group’s profits before tax plunged by 87 per cent last year from 1.5m to 207,763.The IFA firm had to write down 571,739 compared with just 50,000 in 2007 while revenue per adviser fell from 273,000 to 233,000.The firm says its plans to grow organically during 2008 were hit by economic conditions. It says being […]

Conrad had a point

Once I had a fund and it was a gas – soon turned out, had a heart of glass.


Aifa slams IFA Promotion

Aifa director general Chris Cummings has hit out at IFA Promotion over the way it communicates with other trade bodies and the lack of an IFA response to the Natwest advice adverts.

Five reasons for optimism in India

By Kunal Desai, Head of Indian Equities at Neptune Investment Management Following the MSCI India Index’s 26.4 per cent return in 2014, stemming from a 7.3 per cent rise in GDP, investors have recently become increasingly concerned about India’s future growth potential. What has happened to India’s reform agenda and are there any signs of […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment