April International is poised to answer adviser calls for more providers to enter the global risk benefits market with a launch targeted in the third quarter of 2023.
Its plans were revealed at Health & Protection’s international PMI House of Lords roundtable as the adviser panel raised the subject as one of the key issues they face in meeting client needs.
“Talking products and challenges for advice firms, we really struggle in the life and disability market,” said Mercer Marsh Benefits multinational global mobility solutions leader UK Dave Hilton.
“To be honest, it’s in dire need of investment and competition, but it’s also very profitable.
“There’s a real opportunity either for someone to step up and do better or another provider to come in, though I appreciate it might not be in everyone’s strategy.
“I was really excited to hear Andrew Wilkinson from Moneysworth speaking at the IPMI Summit but the outcome in the individual market was that there was a solution from AIG, it’s now gone and there’s pretty much none.
“It’s just really lacking; so that’s a massive challenge and it’s one for the provider market too.”
‘Wipe the floor with everybody else’
The desperation of the situation was backed-up by Aon global leader – mobility health solutions for multinationals Linda Beavis who noted this was a worldwide problem.
“I would absolutely second that, we have that problem in every market around the world,” Beavis said.
“There is no region where you’ve got a really good risk market and for the providers that we do have, there are definitely some challenges with some of them.
“It’s a shame because if you had one that really just got their act together, they could wipe the floor with everybody else.”
The issue spans across the protection insurance product spectrum including life insurance, critical illness, income protection and accidental death and dismemberment (ADAD).
Likewise, there are specific issues in countries to meet the needs of their populations, for example in Australia income protection is higher profile than life insurance, while in the UK it is reversed.
And clients seeking higher value cover can be particularly restricted.
Engage Health Group head of international benefits Penny Pemberton explained: “I find with insurers on the international market, especially for clients that have been used to the UK-based life solutions, the benefit is not sufficient in terms of the maximum that can be insured.
“That is especially for executives and higher net worth people who are looking to have £4m or £5m in life cover.
“There’s just very little choice and it definitely needs investment and more products coming in.”
Overall, there was a feeling from the panel that intermediaries were left unable to advise on the whole product suite necessary and the market was missing competition.
Attendees agreed that any competitive new entrants or revitalised existing propositions would be warmly welcomed and stood a good chance of securing significant volumes of business.
‘Developing solutions’
However, they were pleasantly surprised when April International UK managing director Joe Thomas declared the firms plans for the sector.
“The risk market is on our radar, we are developing some solutions,” Thomas (pictured) said.
“It’s not happened as quickly as we wanted to, but we’re fully aware there isn’t the level of variety and competition on that on an international scale – and the ones doing it, some are doing it better than others.”
Thomas also highlighted the benefits that could come to providers in IPMI business by having a well-rounded risk proposition.
“That was one of the plus points Global Benefits Group brought to the table, they were doing a lot of risk,” he continued.
“It brought them to the table and a lot of opportunities where by default they would pick up the medical insurance and the risk.
“So we definitely think there’s an opening there and we would like to be in a position probably by Q3 this year to have our life and disability products live for those individuals.”
Thomas added that the products are likely to be available for all its global markets except Switzerland and the United States of America, but did not give any other details.
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