Press Releases
 |
Customers can protect their income and their homes with cover from: www.iprotectinsurance.co.uk |
Press Release - Unemployment Insurance Price Cuts for 2012
Issued 3 January 2012
Leading niche provider of Protection cover i:protectinsurance.co.uk is announcing an amazing deal for customers. They have reduced many premiums for the 2012 re-launch of their flagship Lifestyle Protection Insurance policy. This is despite the major down turn in the economy continuing to generate widespread redundancies and fears this will push up premiums.
This surprise announcement from i:protect is clearly a move to grab market share. It is however only offered to customers who buy this policy directly from i:protectinsurance.co.uk. It is not available on any price comparison websites, over the telephone or through insurance brokers.
Dennis Haggerty Marketing Manager of i:protectinsurance.co.uk commented “These low prices are strictly for on-line customers, though people can call us if they need help completing an on-line application. We already offer some of the lowest priced Mortgage Payment Protection Insurance in Britain today, our Lifestyle Protection product will now join this to really shake up the market. ”
The FSA’s consumer website the Money Advice Service is completely independent and unbiased. Since February 2011 it’s price comparison tables have shown i:protectinsurance.co.uk as offering some of the most price competitive cover combinations for Mortgage Payment Protection Insurance. Now i:protect’s Lifestyle Protection Insurance seeks to repeat this. They are determined to make i:protect the leading value-for-money brand in the short-term Income Protection Insurance market. This cover pays out for up to a year if the policyholder cannot work due to accident, sickness or unemployment.
The short-term Income protection Insurance market is currently dominated by Aviva, and Cardif Pinnacle. They are about to be challenged by i:protect in terms of an exceptional price offering which is backed by i:protect’s excellent reputation for customer service and paying claims. The Review Centre, independent on-line customer review website confirm that i:protect are top of their sector. Also, i:protect make much of the customer testimonials they have received and have dedicated a large section of their website to buyers guides etc. This is designed to demonstrate that they are not just offering low prices. They are serious about delivering long term value to customers.
Dennis Haggerty concluded “We have looked at the needs of working people up to age 50 with modest savings. Particularly young families where their monthly commitments make it virtually impossible to save for a ‘rainy day’. Our cover is affordable, even for people on a tight budget. It is there to help if the main wage earner cannot work and needs money to pay their bills.”
______________________________________________________________________
Short- term Income Protection and MPPI free Help for Buyers pack
Issued 8 September 2011
A new illustrated Help for Buyers pack offering consumer information has just been launched by iprotectinsurance.co.uk. It includes a buyer’s guide to Mortgage Payment Protection Insurance, short-term Income Protection Insurance and Loan Insurance. The pack is free for members of the public to download and offers an update service. It provides buyers with an insight into the market, what to look out for and how to get a good deal.
By seeking to inform and educate the public, i:protect want to give confidence to individuals to think seriously about buying these products. They are acutely aware that many people have been scared off by the PPI miss-selling scandal that has engulfed the traditional high street institutions. At i:protect they see public education as the first step to rebuilding public trust in these protection products and in the providers.
The difficulty to overcome this barrier to sales was acknowledged by Dennis Haggerty Marketing Manager for iprotectinsurance.co.uk, when he commented.”This is a challenge for the whole industry to embrace. We are now heavily regulated and offer strictly compliant products. We must communicate to consumers how they can now benefit from this regulation and buy with confidence. It is essential for protection providers to the get this message out and cut through the noise created by the PPI miss-selling furore"
Originally promoted on Twitter as the @iprotectinsure initiative where tweeters had to register to download this Help for Buyers information pack, it is now hosted on the i:protect website and downloaded for free at www.iprotectinsurance.co.uk/help-for-buyers/
______________________________________________________________________
More than just Unemployment Insurance - Meeting Sir Viv Richards
Released 16 September 2011
As a low-cost no-frills niche product provider, i:protect lack the big marketing budgets of banks and multinational insurance companies. However, we had the opportunity to sponsor a fund raising dinner where the star guest was cricketing legend Sir Viv Richards OBE. Most importantly, the event was specifically to support the development of cricket and rugby for youngsters in the Minehead area where average incomes remain low, with one of the highest levels of unemployment in North Somerset. The fund raising was a huge success and contributed to raising £1000's for a genuine grass roots appeal where every penny reaches the people who need it.
Sir Viv Richards was voted one of the five Cricketers of the Century in 2000 and in 2002 Wisden judged him to be the best One Day International batsman of all time. He was a great specialist in his field, a master batsman and devastating for the bowlers who came up against him. In our own way, we feel that i:protect emulates Sir Viv as a specialist in our field. We are hitting the high priced competition for six providing what we call Lifestyle Protection Insurance. This is an Income Protection policy where the main risk covered is unemployment resulting from redundancy. This insurance pays out for up to a year whilst the policyholder is looking for another job.
Due to the current high levels of unemployment, even though a person loses their job through no fault of their own, it can take many months to secure an offer of re-employment. During this time, bills have to be paid and their mortgage or rent payments kept up. This type of cover is ideal for people who lack enough savings to pay their bills for at least 6 months between jobs. Insurance Industry statistics from October 2010 confirm the average person is out of work and claiming benefit for between 6 and 8 months. Yet a recent investigation revealed that over half of UK families only have enough savings to pay their bills for 2 months or less!
Clearly there is a huge financial gap to fill if a family is to avoid falling into a spiral of debt during a period of unemployment. It is this need that i:protect’s Lifestyle Protection Insurance is designed to address. More importantly i:protect rank very highly in terms of value for money combined with independently verified sector leading standards of customer service.
Just as Sir Viv Richards held the record for scoring more test runs than any other batsman for thirty years, it is the measurement against our peers where i:protect stands out. We invite customers to compare our Mortgage Payment Protection Insurance rates on the independent and unbiased Money Advice Service comparison tables. We believe this underlines the difference between what a specialist can score relative to the competition which includes some of Britain’s biggest banks and high street financial services brands.
A buying tip from i:protect; for anyone thinking of buying this cover it is crucial to do so whilst they are still in steady work. If an employer is making cut backs and redundancies are likely, not even a specialist provider like i:protect will find an underwriter willing to take on the risk. Unfortunately a lot of people can leave looking for this cover far too late, then regret not buying it when they had the chance. Typically, someone age 30, would pay a premium of less than £30 per month for cover that would pay out £1000 per month for up to a year or until they went back to work.
Sponsoring this fund raising dinner, we were proud to welcome Sir Viv Richards and to help develop cricket and rugby facilities for children in the Minehead and North Somerset area.
ENDS
For more information about i:protect please go to www.iprotectinsurance.co.uk or contact dhaggerty@wessex-group.co.uk tel; 01962 892114 For a buyers guide and other information about Lifestyle Protection and Income Protection Insurance, please go to this link: http://www.iprotectinsurance.co.uk/help-for-buyers/
______________________________________________________________________
Don’t Let Redundancy Drown Families in Debt
Released 1 February 2011
Check the position of i:protectinsurance.co.uk on MoneySupermarket's Mortgage Payment Protection Insurance price comparison tables, i:protect offer market leading value for money with the best price to benefit ratio. This is in respect of applicants up to 45 years of age who represent, by far, the majority of buyers.
The independent consumer web site Money Made Clear confirm that i:protect offer the best value for money Mortgage Payment Protection Insurance.
The i:protect Mortgage Payment Protection Insurance pays the policyholder’s mortgage if they are unable to work due to accident, sickness or unemployment. Naturally, that must be involuntary unemployment, a good example of this would be an individual losing their job due to redundancy. When applying for this insurance, i:protect also offer customers the option of selecting up to another 25% of extra benefit to cover other household bills. This policy will pay out a maximum of £1,500 every month, for up to a year, or until the policyholder goes back to work.
Mortgage Payment Protection Insurance is often sought by individuals, as well as families where, although they are in work and able to meet their bills, they simply to do not have the savings to fall back on if they are out of work. Statistics show it takes an average of seven to eight months to find another job*. For many this would mean going into serious debt, together with facing all of the problems associated with credit blacklisting or being forced to seek financial help from family and friends.
With i:protect’s Mortgage Payment Protection policy, benefits are tax free and do not prevent the policyholder from claiming any State Benefits they are due, for example, Job Seekers Allowance. In addition, i:protect include a free legal Helpline for redundancy related matters. More importantly however, their policy includes a free service from independent employment specialists to help their policyholders get another job or start a new career. .
This cover can be bought by self employed people as well as employees.
Because of the flexibility offered by the i:protect policy, premiums vary. However, i:protect confirm that the majority of their customers pay the equivalent of £5 per week for this cover. Most choose to receive a benefit equivalent to their monthly mortgage payment plus, on average, 20% for other bills. This is a very reasonable premium compared to what a bank or building society would charge and reflects the low overheads of i:protect’s on-line business. Their cover is only available direct to the public and not through brokers or other intermediaries. Based in Winchester Hampshire, i:protect deal with all claims in the UK. They do not employ telephone sales staff or use overseas call centres.
The independent consumer web site Money Made Clear confirm that i:protect offer the best value for money Mortgage Payment Protection Insurance. Because of this, it is well worth going to the i:protect website to get a quote before comparing prices. They also offer a free MPPI Buyers Guide that can be downloaded as well as a great number of customer testimonials from people who have claimed on their policies and can vouch for i:protect’s high level of customer service.
__________________________________________________________________
Mortgage Insurance Price Comparison Sites Agree iprotectinsurance.co.uk are the Cheapest
Released 24 january 2011
Check the position of i:protectinsurance.co.uk on MoneySupermarket's Mortgage Payment Protection Insurance price comparison tables, i:protect offer market leading value for money with the best price to benefit ratio.
This is in respect of applicants up to 45 years of age who represent, by far, the majority of buyers. Demand curtails dramatically above this age because, by this stage in their lives, the majority have sufficient savings to fall back on if they are out of work.
The i:protect Mortgage Payment Protection Insurance pays the policyholder’s mortgage if they are unable to work due to accident, sickness or unemployment. Naturally, that must be involuntary unemployment, a good example of this would be an individual losing their job due to redundancy. When applying for this insurance, i:protect also offer customers the option of selecting up to another 25% of extra benefit to cover other household bills. This policy will pay out a maximum of £1,500 every month, for up to a year, or until the policyholder goes back to work.
Mortgage Payment Protection Insurance is often sought by individuals, as well as families where, although they are in work and able to meet their bills, they simply to do not have the savings to fall back on if they are out of work. Statistics show it takes an average of seven to eight months to find another job*. For many this would mean going into serious debt, together with facing all of the problems associated with credit blacklisting or being forced to seek financial help from family and friends.
With i:protect’s Mortgage Payment Protection policy, benefits are tax free and do not prevent the policyholder from claiming any State Benefits they are due, for example, Job Seekers Allowance. In addition, i:protect include a free legal Helpline for redundancy related matters. More importantly however, their policy includes a free service from independent employment specialists to help their policyholders get another job or start a new career.
This cover can be bought by self employed people as well as employees.
Because of the flexibility offered by the i:protect policy, premiums vary. However, i:protect confirm that the majority of their customers pay the equivalent of £5 per week for this cover. Most choose to receive a benefit equivalent to their monthly mortgage payment plus, on average, 20% for other bills. This is a very reasonable premium compared to what a bank or building society would charge and reflects the low overheads of i:protect’s on-line business. Their cover is only available direct to the public and not through brokers or other intermediaries. Based in Winchester Hampshire, i:protect deal with all claims in the UK. They do not employ telephone sales staff or use overseas call centres.
The independent consumer web site Money Made Clear confirm that i:protect offer the best value for money Mortgage Payment Protection Insurance. Because of this, it is well worth going to the i:protect website to get a quote before comparing prices. They also offer a free MPPI Buyers Guide that can be downloaded as well as a great number of customer testimonials from people who have claimed on their policies and can vouch for i:protect’s high level of customer service.
Submitted by:Dennis Haggerty FCII M IDM Marketing Manager iprotectinsurance.co.uk Find
Read the published artical please click here
__________________________________________________________________
Private Unemployment Insurance to Plug the Gap in UK Benefit Provision
Released 24 November 2010
Specialist protection insurance provider i:protect has announced that it has made substantial enhancements in its popular Unemployment Insurance product. Following a tentative improvement in the UK economy, people working in a far wider range of occupations are now eligible to buy i:protect’s low cost on-line product. This insurance will pay policyholders up to £1,500 per month if they are unable to work. This can be a life saver for the average family enabling them to make up for the shortfall between State Benefits and the bills they have to pay each month.
IT specialists and many people in Financial Services, who since the beginning of the recession have struggled to find a low cost provider willing to cover them, should now apply to i:protect. Full details can be found on www.iprotectinsurance.co.uk
Unemployment Insurance from i:protect
- Pays the monthly benefits the customer selects directly into their bank account
- Will keep paying out until the policyholder goes back to work or up to 1 year maximum
- Covers people who lose their job or who are unable to work due to accident or sickness
- Offers a free back-to-work service from employment specialists who help customers find another job, this includes CV writing, on-to-one help on the telephone and sourcing jobs
- Average premiums are between £20 and £40 per month for £1,000 per month benefit
Dennis Haggerty, Marketing Manager i:protect commented, “ We have built our Unemployment Insurance product around the need for wage earners to bridge the financial gap between jobs. Because State Benefits are woefully inadequate during periods of unemployment, this insurance pays out more than enough for the average family to make up the shortfall to meet their bills and avoid being driven into a debt. Anyone who does not have substantial savings to fall back on should seriously consider buying this cover for the sake of their family as well as their own peace of mind.”
Read the published article - please click here
_____________________________________________________________________
Protect Yourself From More Than Just Halloween Monsters
Issued 30 October 2010
Because I live in a village closely associated with witchcraft, like it or not, this is the time of year that spookiness can get under your skin. On Halloween night the Police will establish road blocks preventing anyone reaching our hilltop church. Yes, this is true. Many individuals have been know to get more than a little out of hand when looking for the witch purported fly over the church tower at midnight.
How can people still hold with such beliefs in this modern world? After all, there is so much more to be worried about than flying witches. To be scared, I mean almost hair standing up on the back of your neck scared, l would suggest considering the implications of these two UK statistics:
- Less than 50% of people have enough savings to cover 3 months outgoings (*Source:creditaction.org.uk/debt-statistics/2009)
- 41% of 25-34 year olds have less than £250 in savings. (**Source: Financial Services Forum Oct 2010)
With news of half a million jobs about to be lost in the Public Sector and potentially the same number from the Private Sector, the consequences for people with little money to fall back on are frightening. Forget witches at midnight and things that go bump in the night. This is enough to scare the bejesus out of anyone who thinks their job might be in the firing line.
These statistics are far more meaningful when cross checked with ‘real life’. YouGov undertook a recent poll for the Financial Services Forum and asked a nationally representative sample of people, in the event they were unemployed, which sources would they most likely to use to meet their debt payments. In response, 40% said from savings and another 20% said they did not know what they would do. It would seem at least half of those depending on their savings would soon be struggling if they were unemployed for more than 3 months. The £65.45 per week Job Seekers Allowance would not go far toward paying their bills.
Being out of work for six months or more is a nightmare scenario for anyone. However, for those who have Unemployment Insurance with a typical premium of £20 to £40 per month, at least they would be spared mounting debts and the almost inevitable credit blacklisting. These insurance policies will pay out for as long as a year if the policyholder cannot work. Even in these difficult times, this is usually long enough to secure another job. More importantly, they take the pressure off. Unemployment Insurance allows the policyholder time to get a good job, rather than being forced to take any job out of desperation.
Most people can cope with the rigours of finding work if they known they have enough money to pay their mortgage and their other important bills. Imagine the pressure of preparing for an interview surrounded by final demands and fearing phone calls from debt collectors, or worse, the Bailiff’s knock.
This cover makes so much sense for people who are unable to save enough to build a nest egg of their own. The premiums are only the equivalent of putting five to ten pounds away each week. This is a small sacrifice in the scheme-of-things. Unemployment Insurance will give protection to any family from the really scary things in life. At Halloween forget frightening pumpkin lanterns and don’t worry about witches and ghouls. It is far better to be insured to keep ‘the wolf from the door’ for all of the year.
Unemployment insurance and the different options available are explained in full on the i:protect website. Don't let the spectre of unemployment hang over working families at Halloween or any other time of the year.
Submitted by:Dennis Haggerty FCII M IDM Find out more.
__________________________________________________________
Bridging the Gap Between Jobs with i:protect Unemployment Insurance
Issued 28 September 2010
No savings and fearing redundancy? Many are in this position and are being forced to consider what they would do if they lost their job.
State benefits are minimal
Job Seekers Allowance is £64.30 per week (£50.95 for those under 25). The standard rate for Statutory Sick Pay is just £79.15 per week, payable for a maximum of 28 weeks and the Employment and Support Allowance benefit starts at just £68.95 a week.
Compare this to:
- The average family monthly grocery bill is £428 (Retail Food Consortium June 2010)
- Council Tax is £120 per month for the average band D home (Telegraph March 2010)
- The average annual combined gas and electricity bill is £1000 (Money Saving Expert)
The Centre for Economics and Business Research (CEBR) in March 2010 were reported to have calculated that that the average UK household had a net income of £552 a week. The basic cost of living figure was given as £403 per week leaving nothing for discretionary spending.
When people lose their job they cannot simply switch off the level of payments and expenses associated with their existing working lifestyle. Whilst everyone has different bills and outgoings, the summary of this research suggests that the average household is likely to need £1500 to £2000 per month to just meet their existing commitments and avoid spiralling debt.
For the sole earner who is out of work for six months, they would need between £9,000 and £15,000 just to pay their regular bills.
What can be done to avoid serious debt?
Those with more than £10,000 readily available in their bank account, if they were feeling brave, could gamble on getting another job in less than 6 months*. Even if this money represents their life savings, it will avoid them entering into a spiral of debt and worry. When unemployed, the importance of having the funds to meet regular bills cannot be under emphasised, as it offers the freedom to concentrate on finding alternative work.
Maintaining self esteem for people looking for work is critical. It is just as important to get the right job and not to be financially driven to take the first thing that comes along. This is another reason for having the funds to fall back on, giving the job seeker time to find a new role at the right salary.
No savings? There is an alternative
Provided a company has not made redundancies or announcements about cut backs, the people employed by them may be eligible to buy Unemployment Insurance. The proposition for this product is simple. Without savings, or only enough in the bank to get by for a few months, it is far easier for an individual to take out an insurance for £35 a month, than to try and save up anything like the funds needed to pay their bills in the event of redundancy.
Typically this cover can be bought on-line from specialist provider iprotectinsurance.co.uk for under £35 a month premium for benefits paid at £1000 per month for up to a year. The same cover can cost at least double from banks and building societies (Source: Money Saving Expert Guide to MPPI Insurance).
The iprotectinsurance.co.uk policy in addition to unemployment cover also provides:
- Accident and Sickness benefits
- Services of re-employment specialists to help policyholders get another job including locating vacancies, completion of a CV and preparing candidates for interviews.
- ‘Carer Cover’ this pays a large lump sum if the policyholder has to give up work to look after a relative.
- All benefits are paid directly to the policyholder.
Dennis Haggerty the Marketing Manager i:protectinsurance.co.uk commented. “Our customer research shows that people who buy Unemployment Insurance usually have some savings, but their money will not last if they are out of work for more than two or three months. On average, people select policy benefits of around £1000 per month. This is good value as it is enough to pay the essential bills leaving state benefits and savings to meet day to day expenses.”
The key to the success of i:protectinsurance.co.uk has been the focus upon supplying a product range that is exceptional value for money because it is available exclusively on-line. This eliminates the usual costs associated with selling insurance for example, telesales teams, direct mail, middlemen and commission.
Please visit the iprotect website for links to the money saving information to buy the best value Unemployment Insurance offered by i:protect. http://www.iprotectinsurance.co.uk/products/unemployment-insurance/
Notes
*According to the Office of National Statistics (August 2010) of the total 2.46m people registered as unemployed and seeking work, 48% have been out of work less than 6 months. Unemployment between 6 and 12 month duration was 19.6 percent. Worryingly 32.3 percent have been unemployed for a year or more.
_______________________________________________________________________
Go On-line to Beat the 7 Day Rule
Issued 23 August 2010
Highly competitive direct-to-public iprotectinsurance.co.uk are offering free bolt MPPI and short term Income Protection products to enable the intermediary to test if clients will visit their website and buy these products on-line.
It is a simple proposition. Because most IFA’s and Mortgage Consultants still doubt that they could direct sufficient customers /internet browsers to buy from their web sites, they will not invest in an on-line system. However, once the 7 day rule is imposed, not having these protection products on-line, will place them at a distinct disadvantage. Their clients can look on the web to get a quote during the 7 day period, if they go elsewhere the intermediary could lose them to a competitor.
Therefore iprotect offer to place their quote-and-buy link on the intermediary’s website. If this generates business the intermediary can judge whether it is worth developing further. Only a finder’s fee is paid by iprotect. However, it enables the Intermediary to retain that all important contact with their clients and enhance their website functionality at zero cost.
Sales will determine if there is a business case for the intermediary to further develop their website in terms of offering MPPI and Income Protection on-line in the future.
Proving if on-line is the way forward
The iprotect brand is owned by the Wessex Group who have offered their Broker Lifestyle System to intermediaries for several years. If the iprotect affiliate ‘bolt on’ generates sufficient volumes, Wessex will be quick to respond by offering the intermediary their white label customer quote and buy system. This is the next generation of their current Broker Lifestyle product, fully branded, with bespoke deployment and supporting traditional commission. It enables customers to buy on-line and, where required, the intermediary’s sales staff can simultaneously guide that customer through their on-line application. All other administration is handled by Wessex.
Testing the iprotect proposition - what is the process?
- Click on www.iprotectinsurance.co.uk/affiliates/affiliate-registration/ and register your interest in becoming an iprotect affiliate
- A full application follows and iprotect send through links to products. In addition to their logo, text and images for the Intermediary’s website can be supplied if required
- A standard TOBA is signed before on-line links are deployed and tested prior to going live
This process usually takes about 2 weeks. Thereafter monthly MI is sent by email in respect of the number a quotes, sales and finders fee paid etc.
For the intermediary, to test a quote-and-buy facility at no cost on their website, is certainly an advantage. Implementation of the 7 day rule remains a strong incentive. Wessex also see this as a way for them to establish a preferred list of partners with whom they would like to work as administrators in the future. Proven business volumes would enable them to offer the comprehensive support of their next generation Broker Lifestyle solution as a natural progression from their iprotect affiliate model.
For more details please contact Dennis Haggerty, Marketing Manager iprotect – email; dhaggerty@wessex-group .co.uk
_________________________________________________
Mortgage Payment Protection and Income Protection Insurance to become even more Expensive
Issued 6 August 2010
Mortgage Payment Protection and Income Protection Insurance will become even more expensive as Underwriters learn how Government austerity measures will have a disproportionate effect upon UK employment patterns.
The price of Mortgage Payment Protection and Income Protection Insurance is not just linked to the monthly Office for National Statistics figure for people ‘unemployed and claiming benefit’. This number may remain broadly static for some time. Cynics say for the next few years there will be enough unemployment to hold down pay demands, but not so much that there will be riots in the streets! In fact the gross figure for people without work is less important for the Underwriter setting premiums for both Mortgage Payment Protection and Income Protection Insurance, provided employment patterns are relatively static. During such times this can be measured and insurance rates for the majority of people remain highly competitive. In a static market, providers focus upon offering the best rates to those people who have a better than average chance of either keeping their job or getting another one.
Every economy evolves with new industries that develop at same time as mature or established firms reduce their cost base to compete - typically through automation, market consolidation or simply shipping processes abroad. So, if market evolution is normal and competitive products were offered previously, what's changed? The stark reality is that the new Government has decided to put the UK into the economic equivalent of The Priory to wean us off a dependency upon public expenditure.
For at least 15 years the steady growth of the economy, along with buoyant tax receipts, has enabled public sector budgets to grow, especially in Health and Education. Equally a remarkable programme of inner city renewal has taken place with a multitude of grants and contracts that spread Government spending throughout the economy. David Cameron has declared a clear intention to re-balance the economy away from the public sector. Consequently the certainties of existing employment patterns are being swept away, especially in the inner cities with their disproportionate reliance upon the public purse.
At the same time this is likely to mean that Government departments will slim down their staff to match their reduced workload as the new administration swings away from 'big’ government? Consequently will we see the closure of whole government departments as the new administration moves to out-sourcing? Potentially legions of civil servants could be replaced by a small team of supply chain contracts managers.
Above all else, it is this rebalancing of the economy that creates such uncertainty for the Mortgage Payment Protection and Income Protection Insurance Underwriter. Their job is to accurately estimate employment patterns and redundancies in hundreds of industries, at least 2 years in advance. They then price in the likely cost of claims and work out what premiums people must pay now to cover their claims over the next 2 years. The only certainty the Underwriter has at this time, is an understanding that before people in the public sector move to the private sector, they will lose their current jobs.
How many new private sector jobs will be available for out of work public sector workers in our barely recovering economy? Then to what extent will the individuals existing skills have application in the private sector? Both of these factors will have an enormous impact upon the time it takes for people in this situation to secure new employment.
Most Underwriters have worked in large financial institutions and have seen massive change over the years following mergers and acquisitions. Often these drove savings of perhaps 10%. Now the government is talking in terms of cuts between 25 and 40 percent in their unprotected departments. Furthermore it is the effect on the private sector as big public spending projects are pulled or scaled back. These could send further shock waves through the whole economy reducing the number of available vacancies.
Therefore the sheer scale of change leaves every Underwriter in no doubt that unprecedented numbers will lose their current jobs. They can only guess how long those out of work will take to find another job. This is the hardest factor for underwriters to calculate - they are in uncharted waters and economically speaking surrounded by sharks!
The questions people are asking right now. “Have premiums already gone up this year?” Yes they have. “Will they go up again?” Most certainly, all Underwriters will be cautious when faced with so much uncertainty. “When should we hope things will improve?” When the 'new reality' for UK employment patterns has emerged. Only then will the Underwriters be able to make an accurate assessment and Protection Insurance rates can be stabilised.
With so much change, is this a good time for consumers to buy Income Protection or Mortgage Payment Protection Insurance? Dennis Haggerty, Marketing Manager for on-line specialist iprotectinsurance.co.uk commented “Yes it most certainly is. The longer people leave it the harder both Mortgage Payment Protection and Income Protection will become for them to buy. There are still competitive deals out there. Though Civil Servant and Local Authority workers will have to pay much more, if they can buy the cover at all. This is simply because their future employment prospects are so uncertain at this time.”
The Lloyds Banking Group have recently stopped offering this type of insurance. Far better value can be found on-line, however it is indicative that premiums are likely to rise because the number of providers willing to offer this cover has reduced. From July 2010 iprotectinsurance.co.uk, whilst not recently increasing premiums, they are now declining any further applications from people employed in the civil service or local authorities. This is an example of how the market is contracting in terms of the people Underwriters are prepared to cover. Fortunately they cover most other occupations.
________________________________________________________________________
Unemployment Protection Premiums to Rocket
Issued 9 July 2010
Mortgage Payment Protection and short term Income Protection premiums are set to rocket as Underwriters digest 1.3m UK job losses are now forecast by the Treasury.
The impact of the budget cuts announced by the Chancellor George Osbourne will be felt most of all by the employees of private companies that had won recent tenders for major public projects. For example those companies who thought they would to be delivering the previous Governments flagship £55bn Building Schools for the Future programme. At a single stroke, the Education Minister Michael Gove cancelled contracts for 50% of these new schools. There are also thousands of contractors and subcontractors expecting to undertake work for other Government Departments and for Local Authorities who are now fearful the same fate awaits them. Treasury figures indicate between 600,000 to 700,000 jobs will disappear in the private sector by 2015 as a direct consequence of the cutbacks outlined in the budget.
Low cost provider of Accident Sickness and Unemployment Insurance (ASU), iprotectinsurance expressed dismay when learning of the forecast for 1.3 million job losses. It should be remembered that companies like iprotectinsurance pay out up to £1500 per month to people they insure who unable to work due to accident, sickness or unemployment. Currently some of their claimants take well over 6 months to get another job due to the high level of UK unemployment. Jobless figures for the first quarter were released by the Government in June confirming a rise to 2.47m (source ONS).
Responding to the Treasury prediction of 1.3m job losses, David Cameron said that 2.5 million new jobs will be created as a result of private sector growth by 2015. Unfortunately, for this to happen, the UK economy must grow at far more than 2% per annum. Because, unlike the Public Sector, efficiency in the private sector is remorseless, and consequently growth has to exceed 2% before any need is created for extra staff.
In view of the recession Mr Cameron’s statement would seem to be wildly optimistic. Indeed, John Philpott, chief economist at the Chartered Institute for Personnel and Development (CIPD), condemned this assertion and was reported saying "There is not a hope in hell's chance” when referring to 2.5m new jobs being created. The CIPD has estimated that there will be 725,000 jobs lost in the public sector alone by 2015, although John Philpott conceded the number would be lower if genuine public sector pay cuts are achieved. Unfortunately, the Unions including the strong Civil and Public Services Association will fight this tooth and nail.
Dennis Haggerty Marketing Manger for iprotectinsurance commented “George Osbourne’s budget cuts have created the perfect storm for unemployment. It is not just the number of Civil Service jobs that will be lost. The real worry is the knock on effect of the budget cuts in the wider economy, driving a fresh wave of redundancies in the private sector”.
Without doubt those made redundant will have to fight for a limited pool of private sector jobs.
Dennis Haggerty explained further ”It is the length of time that people take to get back to work that increases the cost of claims and this in turn forces up premiums. We help our customers find new careers, however I genuinely worry whether people who have spent their working lives in the public sector will cope with the requirements of private industry ... they could be out of work even longer.”
The independent Office for Budget Responsibility, set up by Mr Osborne, predicts that unemployment will peak this year at 8.1% and it will then fall in each of the next four years to reach 6.1% in 2015. However this is a long way off and a lot of people are going to lose their jobs in the short term.
Accident, sickness and unemployment cover is often bought as Mortgage Payment Protection Insurance by people when they arrange a new Home Loan. Others buy this cover independently as Lifestyle Protection or short term Income Protection Insurance. All pay out if the policyholder is unable to work. The cover can be bought relatively cheaply on-line with premiums for younger people typically about £30 per month to pay out £1500 per month for claims. However, for people in their late forties and above, these premiums can be double. This is not surprising as the Underwriters point out that, from middle age, people struggle to find work following redundancy and suffer from more health issues.
With so much bad news concerning employment, premiums are certain to go up and some Underwriters are already refusing to accept any applications from Civil Servants. Therefore anyone considering protecting themselves with this type of cover might want to arrange it sooner rather than later.
____________________________________________
New i:protect Insurance Portal for Web Savvy Buyers
Issued 30 March 2010
Summary: Specialist provider i:protect now offers a route to on-line niche insurance products that are largely overlooked by the price comparison web sites. They allow customers to bypass brokers and web based lead generation scams as well as those sales telephone calls that are an anathema to the on-line buyer. The i:protect web portal enables 45 different types of insurance policy to be bought directly from the insurance product providers. Every policy is offered at a discount price that is only available on-line.
Having established their reputation on the leading price comparison and consumer websites selling low price Mortgage Payment Protection and Lifestyle Protection Insurance, on-line provider iprotectinsurance.co.uk are now looking to do the same with a far wider range of products. They offer formidable value for money due to their internet only model. Using technology to drive down their costs they no longer need an expensive call centre to support sales administration.
Not everyone wants to buy on-line, however more people than ever are very happy to do so if it means saving money. At i:protect they see their future serving this growing customer segment and have sourced over 45 different insurance products that can all be bought on-line. They are now offering these through a web-portal for internet savvy buyers who see telephone sales as a hassle.
Dennis Haggerty, Marketing Manager for i:protect Insurance explained, ”We have identified the frustrations of people seeking an on-line quote, who then find they are dealing with organisations that just use the net to get their number to ring them. That is the very thing that most web users want to avoid. Have you noticed just how many leave false contact details on quotes these days? This is the reason why we assure our customers that we only offer them dedicated on-line products, no lead generation or call backs.”
There is certainly a place for a specialist in their field who can be relied upon to direct people to the products they want. At i:protect they offer a wide selection of insurance products for customers who prefer to make their own mind up when buying on line. They have also included those niche products that do not feature on the heavily advertised websites, yet still provide the value and on-line buying experience sought by their customers.
When asked to say why customers should go to i:protect rather than one of the price comparison sites, their Marketing Manager responded ”For the most popular insurance products the comparison websites are a great place to start, however, most simply don’t offer specialist products such as Income Protection Insurance. Also, they don’t have all of the best deals. For instance, we now offer a link to Aviva Direct motor insurance and they’re not on comparison sites."
The i:protect customer proposition is built around offering to save web buyers time and frustration searching the internet, not just for value but also for the internet only buying experience they are seeking. With this fresh approach i:protect look to attract new customers with their new website dedicated to the needs of the on-line insurance buyer.
There are now over forty different insurance products offered by i:protect. They provide these themselves or through affiliates. Their core product range of Mortgage Payment Protection, Income Protection and Gadget Insurance has now been joined by Motor, Home and Travel Insurance, Pet, Horse, Caravan and a large range of niche products. Cover for Tradesman and a comprehensive range of Businesses Insurance products are also offered. They confirm more are being added driven by customer demand.
This is an interesting take on customer segmentation. It is not based on product, but rather on buying preferences. The business logic of i:protect’s approach is overwhelming. If they can appeal to customers who don’t like to use the telephone to buy, their costs will always be lower than their mainstream competitors.
_______________________________________________________________________
Public Sector Employees Take Action Now Before Redundancy Strikes
Issued 4 January 2010
Just when there are finally signs that things are beginning to stabilise in private industry, Public Sector jobs look set to take a big hit. All political parties are now telling us that there will be swingeing budget cuts after the next election. If ever there was a time civil servants, local authority employees and healthcare workers should be thinking about protecting themselves from redundancy, it is now.
Dennis Haggerty the Marketing Manager of iprotectinsurance commented "Our message to customers has always been that there is no reason to risk losing your house or getting into serious financial difficulties because you are unable to work. Protect your family and your home with one of our low cost policies”. Many thousands have responded by taking out a Mortgage Protection or Lifestyle Protection policy with iprotectinsurance.co.uk over the years. However, very few of their policyholders are employed in the Public Sector.
At iprotect they believe this is because these type of jobs were previously immune from a downturn in the wider economy. Winchester based iprotect have dealt with hundreds of claims this year from people who had been made redundant for the first time in their lives. Individuals in private sector jobs previously considered perfectly safe.
Most people took out loans and ran up credit card bills during the good times. These commitments, as well as rent or mortgage repayments, still have to be met by men and women suddenly thrown out of work through no fault of their own. Families without savings have been plunged into a terrible spiral of debt. They could have avoided this by taking out iprotect’s Lifestyle Protection insurance for example. However, it is essential to secure this cover before an employer starts talking about cut backs and redundancies.
Dennis Haggerty commented on behalf of iprotect "We have letters from families with large mortgages to pay each month. They have left us in no doubt that they would have lost their homes should it not have been for their policy with us. We have included an extract from one of these letters under the ‘What our customers say’ pages our website. It is so important that people realise that this cover is available to them and how it can protect them from financial meltdown."
With the example of what happened in private industry, it is now vital Public Sector employees take the opportunity to buy this cover before it is too late. As soon as specific Government Departments are tasked with budget cuts, Underwriters will refuse to offer insurance to people in occupations or functions certain to be considered for redundancy. The same thing happened when the banks ran into trouble in 2008, everyone knew they would be cutting their workforce and overnight this insurance became impossible for bank staff to buy.
Insurance is all about spreading the risk. If 10% of people are made redundant and have to claim, their payments will be met by the premiums of the remaining 90% still working. This keeps the cover affordable. However, if the only people to take out this insurance were certain to claim, the risk could not be spread or shared between enough people to make the cover viable to offer. This is the reason Underwriters decline to insure people with a higher than average probability of being made redundant.
For Public Sector employees the most important issue is to act now before the post election budgets are disclosed and the window of opportunity to buy this cover is slammed shut.
This is a typical example of a Mortgage Protection quotation. The premium for a person age 30 is £20.90 per month for a policy would pay them £1000 each month, for up to a year, if they are unable to work due to accident, sickness or unemployment. This policy would have a 30 day excess period, which can be increased to 60, 90 or even 180 days to reduce premiums further. For more information, or to get a instant on-line quotation, visit www.iprotectinsurance.co.uk specialist providers of low cost Mortgage Protection and Lifestyle Protection Insurance.
_________________________________________________________________________
Free direct to public on-line sales system for Intermediaries to banish FSA worries
Issued 9 November 2009
Internet insurance specialist iprotectinsurance.co.uk provides a free solution for intermediaries to add Mortgage Payment Protection Insurance (MPPI) and short term Income Protection Insurance (IP) to their websites. Mortgage Brokers are also signing up to this because of the continuing uncertainty surrounding FSA regulation of these products. They can then leave on-line sales compliance to iprotect and concentrate on more profitable business.
This is an option for firms that want to sell MPPI and IP without the compliance concerns of their traditional sales model. Massive fines for mis-selling and plunging profitability have led both intermediaries and underwriters alike to think seriously whether they want to be in this market. The distributors of MPPI and IP now feel their point of sale model is under attack. The regulator having banned single premium contracts, then promptly made monthly contracts a liability to sell by blocking 2009 rate increases and product changes. Barclays High Court victory overturned the Competition Commission's 7 day rule, however, it is little consolation as the industry must still await the regulators response.
With such uncertainty in the market, intermediaries are unwilling to invest in systems especially as there remains the fear compliance costs will soon wipe out any profit. As an alternative to simply giving up selling these products, iprotect offer intermediaries their affiliate solution to tap into the recession driven demand for this insurance. With iprotect the sales process moves on-line and is strictly non-advised. However the customer is supplied with a wealth of information, buyers guide, links to helpful websites etc to help them complete the sales process.
The gross sales of MPPI and IP products have fallen to an historic low, however in contrast, on-line sales are at record levels. To secure their share of this on-line boom, the intermediary simply enables an iprotect link on their website free of charge. They will then earn a finders fee for every policy sold.
The forthcoming FSA driven annual statements are expected to trigger a great deal of shopping around for MPPI and Payment Protection Insurance generally. Any intermediary unable to offer a competitive on-line product will simply risk being bypassed. Dennis Haggerty the Marketing Manager for iprotectinsurance.co.uk commented "Our free affiliate package is an easy way for the Intermediary to opt into on-line sales to see if the internet works for them. Brokers can leave the compliance hassle behind and keep their clients happy with iprotect rates that compete with the best on Money Supermarket."
For further information please visit http://www.iprotectinsurance.co.uk/affiliate-scheme/
_________________________________________________
Issued 5 November 2009
Internet insurance specialist iprotectinsurance.co.uk provides a simple bolt-on solution for intermediaries to add Mortgage Payment Protection Insurance (MPPI) and short term Income Protection Insurance to their websites. Several Mortgage Brokers have already signed up and many more are set to join them because of the continuing uncertainty surrounding FSA regulation in this sector.
It is an option for those firms that want to sell without the compliance concerns as tightening regulation has created a quagmire for brokers reliant upon their traditional sales model. Massive fines for mis-selling and plunging profitability have led both intermediaries and underwriters to think seriously whether they want to be in this market. Meanwhile, the recession has driven demand for products that are now more difficult to sell due to their regulation.
The traditional point of sale model, with the sale of an MPPI policy bundled with a mortgage sale, is under attack. The regulator having banned single premium contracts, then promptly made monthly contracts a liability to sell by blocking 2009 rate increases and product changes. The FSA proposed imposition of a compulsory 7 day ban on any MPPI sale linked to a loan was thrown out by the High Court. Despite Barclays victory in this case, it is little consolation as the FSA have yet to show their hand in respect of any revision to their proposed regulations.
With such uncertainty in the market, intermediaries will not invest in systems and some would rather stop selling MPPI altogether. Such a dramatic response is un-necessary for those willing to take forward the iprotect affiliate solution. With iprotect the sales process moves on-line and is strictly non-advised. However the customer is supplied with a wealth of information, buyers guide, links to helpful websites etc to aid the sales process. The intermediary simply enables an iprotect link on their website and thereafter earns a finders fee for every policy sold. For Mortgage Brokers iprotect provides an easy way to add a risk free quote-and-buy facility to their website free of charge.
The forthcoming FSA driven annual statements are expected to trigger a great deal of shopping around for MPPI and Payment Protection Insurance. Any intermediary unable to offer a competitive on-line product is likely to be simply bypassed. Dennis Haggerty the Marketing Manager for iprotectinsurance.co.uk commented "Our affiliate package is an easy way for the intermediary to opt into on-line sales to see if the internet works for them. If the business volumes are there, we can also offer bespoke solutions.. Brokers can leave compliance hassle behind as well as keep their clients happy with iprotect rates that compete with the best on Money Supermarket."
Summary of the iprotect offering for intermediaries
- It assumes the intermediary has a website that is used by their customers and attracts web traffic
- A link is provided by iprotect to place on the intermediary website. This is either for specific products such as MPPI or linked to their complete protection range (includes Lifestyle/Income Protection, Tenant Rent Protection, Gadget and Mobile Phone Insurance)
- Any web content promoting these products on the intermediary website is either supplied by or signed off by iprotect, as they take responsibility for compliance of the on-line sales process
- All fulfilment, premium collection, documentation, administration and claims are dealt with by iprotect directly with the customer
- Monthly sales figures are sent by email - high volume iprotect partners can have 24/7 on-line access
- No product exclusivity requirements
- No minimum volumes / threshold before the finder's fee is paid.
- Note iprotect will only do business with FSA register intermediaries
- A finders fee is paid for every sale - this varies depending upon the business type, volume and chosen business model. For example, a typical Mortgage Broker on the standard affiliate scheme would expect to receive £40 per MPPI sale
- This finders fee is paid within 28 days of the first direct debit being received
Summary - iprotectinsurance.co.uk offers a solution for intermediaries looking to generate income from MPPI and short term Income Protection by offering their clients an on-line alternative. Whilst iprotect does eliminate compliance concerns for the intermediary, their on-line product is not a substitute for an advised sale. There should be room for both.
Much depends upon whether the FSA see sense in terms of the regulation, or if they remain determined to separate the provision of a mortgage loan from the sale of an MPPI policy. If they achieve this despite the Barclays ruling, any intermediary without a price competitive product will see their clients lost to the low cost internet providers. The iprotect solution is good for the intermediary to counter this, especially because it can be deployed without any cost.
For further information please visit http://www.iprotectinsurance.co.uk/affiliate-scheme/
___________________________________________________