Written by Dominic Grinstead, CEO, MetLife UK
Taking a look at the UK protection market, it is fair to say there is still more to be done when it comes to inclusion, especially in the context of product design.
One of the ‘underserved’ groups is the self-employed, of which there are 4.4 million in the UK[1]. Having been self-employed at one stage of my career I can speak to the benefits, including the level of autonomy and flexibility. But, on the flip side, there’s also a higher level of financial insecurity and indeed vulnerability.
Whilst there are insurance policies that could prove very valuable in helping to protect their health, income, homes and livelihoods in the scenario of unforeseen events, many simply aren’t aware of these, nor how accessible and affordable they can be with the ultimate benefit of making their financial futures more secure. Simply put, more needs to be done. So how can we in the protection industry, as well as financial intermediaries such as IFAs and Financial Planners, better engage with those who are self-employed and support them with products that suit their needs?
To support this, at MetLife we cater for the self-employed by designing our Everyday Protect product that wraps personal protection cover all in one place, plus it provides the opportunity to top up cover with additional ‘units’ that increase benefits. This includes adding children too for as a little as £1 extra per month. Of those supported by this cover, the proof is in the pudding. In 2022 alone, 90% of MetLife UK Individual Protection (IP) claims were paid within 5 days and over £16.8m was paid out in total.
In making sure the right products are available to suit individual needs, providers have a pivotal role in both enhancing the value of protection, through strengthening the benefits, and highlighting the tangible relevance and usability of the proposition. An example of this is GP24, a virtual GP service which we added to all IP policyholders at no extra cost earlier this year.
With fast and direct access to medical experts and valuable remote healthcare services, those who are self-employed don’t need to take hours out of their day, and lose valuable time and money, going to the doctor. They can rely on expert reassurance and awareness that the support is available as, and when, they need it. And their family can benefit too, increasing peace of mind overall.
Alongside product design, are the terms and conditions. Our working lives have evolved considerably since traditional IP contracts were first devised, yet some traditional principles still apply. An example here is earning dependency and the fact that earnings can fluctuate for someone who is self-employed. Therefore, when it comes to seeking evidence of earnings there is an extra level of complexity for the customer. Streamlining this process will ensure products are more accessible for all.
Overall, it’s clear that we have an increasing number of people off work with long-term health problems in the UK. An issue that is undoubtedly more devastating on those who are self-employed given the immediate impact to loss of earnings. With savings being depleted with the cost of living continuing to rise and 3 in 10 britons not saving anything in the last 12 months[2]., the impact is indeed very real.
Flexibility is the key here. Both in how the products work and at what time they can utilise the support, ultimately keeping them working and healthy where possible. With value-added services that provide tangible benefits from day 1 and 24 hours a day, consumers – and their advisers – can be certain of value for money from the moment they go on risk to protect themselves.
