Chapter 1 - Market Factors & Trends Flashcards
What are the main events which might have a high potential impact on people?
Death & disability
What makes sense to insure?
High impact & low frequencey
What changing social patterns affect protection?
Attitudes to marriage, divorce, childrearing, career building, sexual equality & home based technology
What are the sales & distribution methods?
In the 1950s calling on houses to sell & collect premiums. Financial advisers & direct from provider. Online.
What are the drivers for attitudes changing towards protection insurance?
UK Welfare State, changed family models, growth of consumerism, technological developments, changes attitudes to personal risk, range of other options for spending income
The demand for life insurance is driven by?
Affordability, movements in housing market, economic factors, dependants
Protection Gap Calculation?
Resources needed - cover in place through individual & employer policies
What are morbidity & mortality?
Morbidity = relative incidence of disease Mortality = Chance of death (early)
Rising longevity =
Extension working lives & longer term underwriting
Recent trends in protection industry
Nature of employment changing, More women working, No longer different premiums for men & women, smoker & non smoker policies, preferred approach (fitness & health)
Problem of selling directly?
compliance & underwriting issues, wrong products purchased,
