What is the most common way to categorise risk?
- the severity of the possible impact and the likelihood it will occur
How has social behaviour changed since WW2 which may affect protection planning?
- lives have become less predictable
- increased life events spanning a wide age range
Why do insurers need to be aware of changing social patterns?
Consumers need greater flexibility with more options covering a wider range of risks.
What does the life insurance gap signify?
-the shortfall in the amount of cover required to maintain the standard of living of dependents
How can insurers affect public attitudes to taking out protection insurance?
-advertising, marketing, day to day conversations with consumers, website,
How does the ‘welfare state’ hinder or help the sale of protection?
- some may think protection is not needed as the ‘state will look after you’
- gaps in protection will provide opportunity for sales
Which factors impact on sales of mortality protection?
- dependants
- affordability
- the housing market
- income per capita
What is preferred life insurance?
- a product which segments lives according to healthy or lifestyle characteristics
Does preferred life occur in any context in the UK market?
-not explicitly, but it is inadvertently emerging through the underwriting process
How can online portals lead to the commoditisation of term life insurance?
–because of their exclusive focus on price
