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News in brief…

March 2009 News

CANCELLED COVER WARNING

Cancelling a policy is a false economy for cash-strapped consumers, PruProtect is warning. The insurer has calculated that replacing cancelled cover could cost at least £6,000 over the term. This is because protection insurance is likely to become more expensive as people age. Changes in circumstances such as health conditions can also impact future premiums, increasing the cost beyond the £6,000 calculation. According to Pru’s calculations, £200,000 life cover with serious illness cover currently costs £184.95 per month for a 45 year-old. In three years time this would rise to £215.84, creating a difference of £6,301.56 over the term.

BROKERS IN OCC HEALTH VENTURE

Two former high profile health insurance intermediaries have partnered to launch a new venture based around occupational health and employee assistance programmes (EAPs). Matthew Kelvie, former deputy managing director of Gissings Advisory Services, has teamed up with Phil Taylor, former chairman of the Association of Medical Insurance Intermediaries and former managing director of Preferred Medical, as part of a management team behind Health Assured. The team, which also includes former WPA compliance executive Graham Puttergill, aims to provide a range of services, based around an EAP offering which includes unlimited use of an online health assessment tool, along with nutritional, fitness and lifestyle information. An “EAP Plus” option provides unlimited access to over 400 physicians as well as some access to employment law barristers.

‘MILLIONS’ TURN TO DIY DENTISTRY

Eight per cent of people have attempted DIY dentistry according to consumer watchdog Which? Of this number, over a quarter have tried to pull a tooth using pliers and 12% have tried using a piece of string tied to a door handle. Thirty per cent have tried to whiten their teeth with household cleaning products. Other makeshift procedures included using household glue to stick down a filling or crown popping an ulcer with a pin (19%) and trying to mend or alter dentures (8%). Which? surveyed 2,631 adults and claims that the findings indicate that three million are resorting to DIY dentistry.

GROUPAMA BOTTOM LINE FOCUS

Groupama Insurances is predicting a small yet profitable industry-wide rise in the price of SME private medical insurance (PMI) in the future. Announcing its group results for 2008, Groupama said its UK healthcare portfolio enjoyed an improvement in its bottom line performance during the year. Although rating levels for PMI for SMEs remained under “strong competition” during 2008, Groupama said that was changing. “There now appears to be the possibility of the market responding to correct adverse profitability with some potential for small price increases in 2009 - something that is long overdue,” Groupama said. Francois-Xavier Boisseau, chief executive officer, Groupama Insurances, said: “We have taken a very sensible and disciplined approach to our healthcare business over recent years and have concentrated on enhancing the bottom line rather than trying to grow in unfavourable market conditions.”

NHS COMPLAINTS HEADACHE

Handling of complaints is the number one issue raised by people complaining to the Healthcare Commission about the NHS. The watchdog’s report shows that this concern accounted for 19% of cases reviewed. In almost half of complaints reviewed, the commission either upheld the complaint or sent it back to the trust for further work because the initial response was insufficient. Other causes of complaint include poor communication (12%), standard of treatment (11%), delay or failure to diagnose a condition (9%) and delays in accessing care (8%). Each year the NHS delivers 380 million treatments and receives around 135,000 complaints.

UNUM EXTENDS DUAL BENEFIT

Unum, the disability insurer, is to extend its Dual Benefit Group Income Protection product to allow cover for companies of all sizes. The product, which was previously only available to companies of between three to 99 employees, was launched in April 2008 and pays income benefits to both the employee and employer in the event of long-term sickness.

AXA UPS AGE LIMIT ON LIFE COVER

AXA has raised the age limit on its life cover from 70 to 85 in a move which it said is in response to “changing social trends”. Despite the increase in age limit, AXA said it will not cap its initial commission for clients whose length of cover takes them beyond the age of 75. Advisers will earn initial commission based on the full term of the policy. In addition, customers offered standard rates now have 180 days from when the terms are offered in which to take up the offer without completing a declaration of health, an increase from 90 days previously. Meanwhile, consumers offered rated premiums will have 90 days from when the terms are offered in which to take up the offer, an increase from 30 days previously.

NUH HEALTH CLUB OFFER

Norwich Union Healthcare has announced new partnership agreements with health and fitness club providers Fitness First and Livingwell. The deal, which is part of its NU Get Active initiative, means that all Norwich Union Healthcare private medical insurance, income protection, group risk and occupational health customers can access cheaper health club membership discount, through specially negotiated rates with a national network of health and fitness clubs. Discounts range from 15-40% depending on which facility is chosen. In addition to Fitness First and Livingwell, the network also includes; Bodysense, Kinetika and Fitness Express health clubs as well as a number of independent facilities.

CANCER UNEMPLOYMENT RISK

Cancer survivors are more than twice as likely to be unemployed, according to a new international study. Researchers looked at records for 20,366 cancer survivors and 157,603 healthy participants, mainly based in the US and Europe. The study, published in the Journal of the American Medical Association, showed that overall, a third of cancer survivors (33.8%) were unemployed compared to 15.2% of healthy participants. Unemployment was higher in survivors of breast and gastrointestinal cancers. It was not higher among survivors of blood, prostate or testicular cancers. In the UK, 26% of cancers are diagnosed in people under the age of 60. Research conducted by Macmillan indicates that 79% of people would expect to go back to work after a diagnosis of cancer.

MERCER TO ADVISE NUFFIELD HEALTH

Mercer, the employee benefits and human resources consultancy, has been appointed by Nuffield Health as its pensions liabilities adviser. The Nuffield Health pension scheme has approximately 8,000 members and assets of over £200m. Nuffield Health is the UK’s largest healthcare charity. It has a national network of over 200 facilities including hospitals, fitness and wellbeing centres, sports and leisure centres and specialist health assessment centres including facilities in over 100 client company sites.

STRESS-RELATED PROBLEMS ‘UP 20%’

A mental health hospital is reporting a 20% rise in the number of people seeking advice for stress-related problems. The statistic is accompanied by a warning that the recession may be having “serious repercussions on the nation’s mental health and wellbeing”. Capio Nightingale Hospital, central London’s only independent mental health hospital, has responded by offering wellbeing support including sleep and energy management, diet, exerxise and mindfulness meditation. It has also set up a confidential freephone helpline for people who would like to receive advice on mental health issues, including stress and anxiety.

SKANDIA ONLINE HEALTHCARE

Skandia is providing free access to an online healthcare service for all new protection clients. The service, provided by roadtohealth, includes an online health assessment and ongoing guidance and support on topics such as health conditions, diet and exercise. It will be available to all new policyholders of both Skandia Protect (term assurance and critical illness) and The Skandia Plan (whole of life). Policyholders who took out critical illness cover after May 2007 will also have access. Check page 37 for a review of the rest of the product.

HEALTH AND PROTECTION UP AT AXA

AXA has said its Protection Account business enjoyed significant growth in 2008, with annual premium equivalent (APE) (100% of regular premiums plus 10% of single premiums) jumping 63%. The company’s 2008 report also shows that its healthcare business grew 8% from £993m in 2007to £1,070m, with subscriber numbers increasing by 12.5%. There was growth across all private medical insurance classes of business. AXA is attributing this growth to the integration of ICAS, the employer support and wellbeing provider. AXA-owned Bluefin Advisory Services (Thinc and PIFC Consulting), which provides financial advice, wealth management and corporate consulting services and Bluefin Insurance Services (Venture Preference) which provides professional insurance broking and risk management services, also reported strongly. Bluefin Insurance Services increased its placed annualised gross written premium by 40% to £0.7bn in 2008 compared to 2007 while Bluefin Advisory Services increased funds under management by 53% to £0.5bn in 2008. However, overall AXA UK earnings were down 19% to £288m, which the company described as “a resilient result in challenging markets”.