Generali is exiting the UK group risk market with Unum securing the renewal rights for the insurer’s UK employee benefits business across its group risk product range.
In addition, Unum will also join the global Generali Employee Benefits (GEB) Network immediately to jointly provide UK employee benefits solutions to global employers.
The Generali UK employee benefits team will also be joining Unum as part of the deal.
Unum added it will expand its operations and administer Generali UK’s employee benefits existing policies and claims to ensure continuity of service, relationship management, and a seamless transition for all customers.
Generali UK group risk policies will start with Unum once terms have been accepted before or at the policyholder’s next rate review.
GEB and Unum will seek approval under Part VII of the Financial Services and Markets Act 2000 for transfer of the remaining Generali UK EB policies and claims. This is all subject to regulatory approvals at the appropriate stages.
Unum covers around 2,092,255 employees at 15,392 employers with group protection policies, while Generali UK covers around 441,000 at 343 employers, according to latest available data from Corporate Adviser‘s Workplace Wellbeing Report 2024.
Expanding operations
Mark Till, CEO of Unum UK, (pictured) said: “This acquisition, combined with the expansion of our operations, strengthens our commitment to delivering high-quality workplace protection benefits and exceptional customer experiences.
“We’re proud to already protect millions of individuals across the UK, and we’re looking forward to working in partnership with GEB to extend our products and services to even more people.”
Ludovic Bayard, CEO of GEB, added: “Welcoming Unum into the GEB Network reflects our strategic ambition and unwavering dedication to sustainable growth and operational excellence.
“Both Unum and GEB value long-term partnerships built on integrity and mutual trust and share a relentless focus to ‘Deliver on the Promise’, one of Generali’s key values centred around improving lives.
“By partnering with Unum we are significantly strengthening our position in the UK, in the international employee benefits business arena, and in our commitment to delivering best-in-class and innovative solutions to our captives and multinational clients.”
Positive move
Advisers that Health & Protection spoke to welcomed the development.
Karen Gittings, senior corporate benefits consultant at Titan Wealth Planning, described it as a “positive move”.
“With group risk at the moment, all insurers are quite poor at admininstration. I think that Unum are in a strong proposition and it’s probably one of the best insurers it could have gone to,” Gittings said.
Brett Hill, head of health and protection and Broadstone, told Health & Protection he was not overly concerned by further consolidation in the market.
“This is further consolidation in the group risk market following AIG being acquired by Aviva, but I think if you compare it to the other risk and health markets, PMI, dental in particular, the group risk market still offers clients and advisers plenty of choice,” Hill continued.
“I think if we were to see this recent consolidation accelerate then we would be concerned, but at the moment, competition within the group risk market still remains very healthy.”
Stuart Lowe, director of risk and protection at Broadway Insurance Brokers, added: “I can only see it as a good thing from an Unum provider point of view.
“I think it’s hopefully going to make Unum stronger, maybe taking the good parts of Generali and integrating it into their proposition.”