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Trends in protection

Trends in protection. Topics. Consumer behaviour Chronic illnesses Medical trends – cancer What does the future hold Education Inflation Pensions Business. Consumer behaviour. 33% of 21-70 feel under insured 1

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Trends in protection

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  1. Trends in protection

  2. Topics • Consumer behaviour • Chronic illnesses • Medical trends – cancer • What does the future hold • Education • Inflation • Pensions • Business

  3. Consumer behaviour 33% of 21-70 feel under insured1 Over 60% of adults are looking to the internet to find information about insurance Family and friends are influential • 75% of Advisers said that referrals were their biggest source of new business2 67% of people would be less likely to cancel a protection policy if the provider rewarded and valued their loyalty4 1 million people over 65 still working3 Source - 1 Swiss Re Insurance report 2013 | 2 PruProtect Survey 2013 | ONS Jun 2013 | 4 The Syndicate 2012

  4. A changing landscape Chronic illnesses • Advances in diagnosis and treatment have led to reductions in premature deaths from major causes such as: • Heart disease • Strokes • Respiratory disease • Infectious disease However, it means more people are living with serious illnesses: • 2 million people in the UK living with a major neurological condition • Musculoskeletal disease- 137 people per 1,000 reporting a long-term condition  • 60 per cent of people on long-term sick leave have a musculoskeletal condition • Around 835,000 people in the UK have been diagnosed with Lung Cancer • additional 2 million people living with the disease who have not been diagnosed • Coronary heart diseaseand strokeare the biggest causes of death in the UK • Even with coronary heart disease mortality rates halving between 1993 – 2010 Source: Kingfund 2013

  5. Medical trends 1 Year Prevalence 5 Year Prevalence 10 Year Prevalence Male 98,726 339,971 507,840 Every two minutes someone in the UK is diagnosed with cancer1 1 in 2 people are expected to get cancer at some point in their life by 20203 Overall cancer incidence rates in Great Britain have increased by more than a third since the mid-1970s Over 1.3m cancer sufferers  in the UK who were alive up to 10 years from diagnosis at the end of 2006 Over two million people living with or beyond cancer in the UK  • Predicted to rise by more than 3% each year2 Female 101,796 382,030 622,875 Persons 200,522 722,001 1,130,715 People are living longer with cancer Cancer Overall cancer prevalence in the UK (exc NMSC) at 31st Dec 2006 Source - 1 Cancer research UK 2013 | 2 Cancer research 2008 | 3 Macmillan Jun 2013

  6. What does the future hold We will continue to live longer But we’ll live longer in Illness Since 1990, life expectancy has increased 4.6%, but “healthy” life expectancy has only risen 3% Source: Female life expectancy rates, British Medical Journal

  7. Education Up to £1,600 a year to send a child to a state secondary school1 Average private school fee’s £4,7652 a term • Inflation means a child starting private school now, aged 5, would cost their parents £235,0003 in fees by the time they reached 18 Universities can charge up to £9,000 in tuition fees4 A student starting university could expect to leave with a debt of around £53,0005 Is a child’s education priceless? Sources: 1 - Telegraph, July 2013 | 2 - ISC Census 2009 – 2013 | 3 - PruProtect calculation 2012 | 4 – Independent Oct 2014 | 5 bbc.co.uk, 12 Aug 2011

  8. Inflation Prices are now rising faster than income1 Average annual gas and electricity bills to soar above £1,500 for the first time2 If grocery prices had increased at the same rate as house prices since 1971 a chicken would cost £51.183 Only 8 savings accounts negate the effects of inflation out-of 853 ISA and non-ISA accounts4 Inflation is higher than the headlines sometime suggest: Less in your shopping basket or less in your wallet? Annualised inflation rates to Sept 2013 Premium increases use Sept 2013 RPI rate of 3.2% Sources: ONS and Nationwide Source 1 – DaiilyMail Oct 2013 | 2 – Telegraph Oct 2013 | 3 Shelter Jan 201 3 | 4 – Econiomic voice Oct 2013

  9. Pensions Estimated 11m not saving enough for retirement1 Millions not saving enough for retirement2 The pension time bomb is about to explode • 1901 = 10 workers for every pensioner • 2010 = 3 workers for every pensioner • 2050 = 2 workers for every pensioner State pensions £5727.80 per year (£110.15 per week) rising each year by3: • Average earnings • Prices (CPI) • 2.5% 1 in 5 believe that they wont have enough money in retirement4 Many investors don’t understand how much their pension is disappearing in charges5 Pension funds charge on average 1.5% No Charge £248,179 1.5% Annual Charge £174,556 2.5% Annual Charge £139,986 Source - 1 DWP 2013 | 2 Pensions regulator Sep 2012 | 3 Gov.uk Nov 2013 | 4 HSBC Sept 2013 | 5 Telegraph Jan 2013

  10. Business Over 4.2 million people in the UK are now self-employed 60%rise in self-employment between 2008 and 2012 • Mostly in 20111 £1.35 trillion UK business protection gap2 70% of businesses have no plans in place to repay director loans to deceased estates Small and Medium sized businesses make up 99% of all 4.8m businesses in the UK3 1.35 trillion UK business protection gap The need for Business Protection and Relevant Life Policy Source - 1 ONS 2013 | 2 Unbiased.co.uk 2012 | 3 UK, Parliament

  11. Thank you Name

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