Unum Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England 983768.
How to write Group Risk business
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This presentation has been designed for an audience with knowledge of financial products and nothing from it should be used with customers as a sole basis for making decisions on selling products. The presentation uses examples to demonstrate products but these are for illustration purposes only. For actual customer illustrations please contact your Group Risk provider or Unum Representative.
Disclaimer
Terms and conditions apply to all Unum products highlighted in this presentation and they may differ from provider to provider and over time.
Unum is not authorised to give advice. The material contained in this presentation applies only to Unum and its products. Whilst we have taken all reasonable steps to ensure that the information within this presentation is accurate and up-to-date, we cannot accept liability for any error or omissions.
Unum Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered and Head Office: Milton Court, Dorking, Surrey, RH4 3LZ. Registered in England company number 983768.
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Agenda
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Learning objectives
An introduction to Employee Benefit (Group Risk) products
Writing ‘New to Market’ business
Switching and transferring business
Processes for new, existing and renewal business
How Employee Benefits (Group Risk) can build your wider portfolio
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Learning objectives
01 02 03
Understand what Employee Benefits are in the Group Risk context
and the types of products available
Recognise the processes involved in quoting and writing new business and switching existing
policies
Identify how ‘added value services’ form
part of a broader Employee Benefits
offering
Understand how Employee Benefit
products can form part of your wider portfolio
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What are Employee Benefits?
Employee Benefits (within the Group Risk
context) is the umbrella term mainly used for three core products
These are under a ‘group’ scheme but
can be funded differently
Employer Employee Combination of both
Income Protection
Life Insurance
Critical Illness Cover
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Provides a financial benefit and rehabilitation support if an employee is unable to work because of long term illness or injury.
Benefits are normally based on an employee’s earnings with options available to meet the employer’s specific needs and budget.
What is Income Protection?
Terms and conditions apply. Cover depends on policy.
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Provides a tax-free lump sum pay out to loved ones in the event of an untimely death.
Life Insurance also gives family members much needed practical and emotional support during a very difficult time.
What is Life Insurance?
Terms and conditions apply. Cover depends on policy. Based on our understanding of current UK tax legislation and HMRC practice. Unum does not give advice. Please seek independent tax advice as appropriate.
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Provides employees with a tax-free lump sum after they, their spouse or partner (if covered) or children (up to the age of 18 or 21 if in full-time education) survive one of the defined medical conditions (such as stroke, heart attack or cancer) or undergo a surgical procedure covered under the policy and survives for 14 days.
What is Critical Illness cover?
Terms and conditions apply. Cover depends on policy. Based on our understanding of current UK tax legislation and HMRC practice. Unum does not give advice. Please seek independent tax advice as appropriate.
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Opportunity for clients
To develop relationships with new clients or
industriesGroup scheme have the potential to reach new
private clients as well, to address their general
insurance needs
To help existing clients with potential cost savings
Help your clients get the best products to suit their needs
To offer clients access to products in a growing
market
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Adviser opportunity
To offer a broader product portfolio
Cross-selling opportunities to
complimentexisting policies
To further contact with existing clients
Auto-enrollment process starts April 2020 and this
is an additional opportunity to add Group Employee benefits as part
of this programme
To supplement existing adviser revenue streams
Commission paid monthly or annually, as long as the policy
remains in force
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Market opportunity
Group IncomeProtection coverage
Group Lifecoverage
Group CriticalIllness coverage
90% 59% 98%Potential
clientsPotential
clients
Full-time employees
24m
Sources: ONS (January , 2019), Swiss RE Group Watch Report (2019)
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Consultancy support
Joint client visits and support, such as seminars, Chamber of Commerce support and breakfast meetings
Data driven market insight capability, including propensity to buy modelling and management information on existing block
Marketing and pitching materials, such as bespoke website copy, presentations and internal communications support
Writing Group RiskBusiness
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Examples of the type of thing you could look for when transferring business include:
What could you look for?
Enhanced Non-Medical Limits (Free Cover Levels) as some providers may restrict benefits
Employee Assistance Programmes and their overall participation
Policy expiry dates (eg: State Pension age)
Benefits Payable
Contact your Consultant for additional support
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To produce an initial Group Risk quote the following is required:
Quoting ‘New to Market’ business
✓ Company name and Companies House registration number
✓ Names and/or gender and dates of birth of employees
✓ Occupation and salary (including any dividends, bonuses and P11D benefits)
✓ work locations (if there are multiple sites) of employees
✓ Details of any long term absentees over 3 months
Please note that details for long term absentees are required for both Group Life and Group Income Protection policies
Broker-own policies are often a good way of endorsing employee benefits
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Eligibility of policy members
Not all employees at a business have to be insured, however ‘categories’ must apply. All employees detailed within the category must be included within the policy. Example categories might include:
✓ Working Directors
✓ Senior Management
✓ Management
✓ Team managers / leaders
✓ Full-time employees
Criteria can be applied such as employee eligibility after a certain period of employment (eg: 6 months), day one entry or to cover TUPE’d staff*
*Eligibility can be defined and changed at each policy anniversary renewal
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Switching to another provider
Direct Debit Mandate for payments and payment terms (Monthly)
1 PolicyRenewal date 2 The quote illustration
number being accepted 3
What’s required?
Please note that for Group Life policies, trusts switching to a provider’s Master / Registered trust programme also require a newly completed form.
Group Income Protection:
Claims history (three years) is required. If any members have any medical loadings or policy restrictions (eg: benefit levels) then we would require this for quoting purposes.
Policies can still ‘switch’ if there is an existing claimant but the existing claim remains with the provider until the claimant has returned to normal working duties for 30 days. The employee then joins the new provider’s policy.
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New and Switch business process
New business
✓ Quote acceptance number
✓ Confirmation of Long term absentees (if any)
✓ Confirmation of on-risk or renewal dates
✓ Payment frequency and Method (Direct Debit Mandate / Monthly)
✓ Any current underwriting decisions on any individual members
✓ Number of changes to the original data provided (staff leavers / joiners or salary increases)
✓ Signed Direct Debit Mandate
✓ Master Trust documents (Group Life policies only)
Switch business
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Advisers quoting the scheme but yet to service the broker for the company
✓ Illustration provided as normal
Transferring business from other Advisers
For both situations, the same business process is always followed in all cases
Advisers that are asked to become the servicing broker:
✓ ‘A Letter of Authority’ is required from the company confirming the policy details (if the existing provider holds the scheme)
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Existing business / renewals process
Before the renewal is due to complete, a full renewal pack will be issued
01.This pack will contain a request for up-to-date employee data
02.If the policy is within a rate guarantee period a new invoice will be issued to the client
03.At the end of the rate guarantee period, the rate is re-tested and the scheme is re-costed for a further 2-3 year term
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Value added services
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Added Value Services
Please note: Not all additional services are listed here and some are available at an additional cost. For a full list please contact your Unum Consultant
Cognitive Behavioural Therapy (CBT)
Early intervention helpline
Employee Assistance Programme
Vocational Rehabilitation Services
MentalHealthFirst Aid
Charity Partnerships
Remote GPs , physio, mental health support
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Employee Assistance Programme
Confidential Employee and Employer Assistance Programmes (EAP) often provide support 24/7, 365 days a year offering:
✓ Toolkits covering a range of issues including parenting, work matters, debt management and healthy eating
✓ Child and elder care matched referral services
✓ Provision of EAP service for family members and dependants
✓ Downloadable mobile app
Employer specific:
✓ Legal information across a range of issues available by phone or online
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Cancer Support Services
Access to cancer specialists
Second opinion review diagnosis and pathology reviews
Coordination of care, and explanation of treatments
Bespoke support plans
Dedicated Case Managers
Examples of support
Not all of the services listed above are standard as part of a Cancer Support Service. Full
offering depends on provider and policy. Some services may be an additional cost.
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Learning outcomes
01Employee benefits in the Group Risk context is the name traditionally given to Group Income Protection, Life Insurance and Critical Illness cover
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The processes for switching business from other providers and transferring business from other advisers is simple and Unum’s consultants can support with this
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Added value services vary from provider to provider and are often overlooked, but these play a key role in a workplace wellbeing and employee benefits offering
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Employee Benefits can fit into existing adviser portfolios by potentially offering an alternative option to traditional adviser products
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Thank you for your time
Full product details available at: unum.co.uk
