OCTOBER 2016
In association with
THE SEVEN FAMILIES STORY
How a bright idea became a reality Interview: Tracey Clarke Aegon: Make income replacement a top priority The start of better things Interview: Paul Norbert Interview: The Pickfords LV=: As the first chapter closes Interview: Nikki Thornley Building on the legacy Scottish Widows: From Seven Families to your family Videos: The other families
Contents
As a protection journalist, Seven Families is undoubtedly the most exciting and worthy cause that the insurance industry has worked on for some time. In putting together this supplement, I spent time talking to four of the families. It was a wonderful experience to hear about the journeys they have been on and how the project has changed their lives. Unfortunately, the Pinders and the Knights were unreachable at time of printing this supplement. Graeme Snell submitted answers by email that were sadly quite brief. However, he said that he was working on a self-employed basis and looking at applying for full-time roles. “Ironically, having the stroke has had a huge positive impact on my life and I could not be happier,” Snell said. Elsewhere in this supplement, the Seven Families founders discuss how the project progressed and three major insurers who backed the campaign provide their views including the legacy of the project. A big question has been [many] advisers are aware of the project, but what about the man on the street? The Mail on Sunday’s Jeff Prestridge tells us his views of the consumer impact on page 10. For me, Seven Families doesn’t feel finished and only now with the benefit of hindsight can we see what went superbly and what needed more work. The protection industry is currently in talks to how we can build on this legacy – this needs to happen quickly to build on the momentum achieved..
Family matters
Fiona Murphy, editor, COVER
Introduction
“Having a good idea and turning into reality are two very different things. What we had to do was to hold on to the vision that we had created but turn it into a practical plan”
Peter Le Beau reveals how the original idea of using real people to display the impact income protection can have on lives took shape, capturing the imagination of advisers and the public alike
How it started
How a bright idea became a reality
Sometimes in life you get a feeling that is exciting and which turbocharges the daily routine. Just such a moment occurred in the unlikely setting of an Income Protection Task Force meeting. The credit for that initial lightning bolt goes to Karin Lloyd, who, while we were bemoaning the difficulty in enthusing the individual income protection (IP) market said: “If only we could take real people and show what the impact of IP could be in their lives.” At that moment it all suddenly seemed so clear. For years, some of the leading advisers had been pleading with the members to share case studies so that they could discuss real people with the families that they talked to in their daily discussions. For some reason they had not been forthcoming, despite the fact that we knew that there are some remarkable stories out there. Of course, having a good idea and turning into reality are two very different things. What we had to do was to hold on to the vision that we had created but turn it into a practical plan. First, we had to iron out what the proposition was. People forget that the first thought we had was to have 20 families. We decided rightly that this wouldn’t work and that the ideal number in terms of funding and public attention span was seven. We set the funding level at £20,000, which we believed should be a flat amount, not one based on premium income. This was because we wanted the campaign to be inclusive: one that the industry could own equally, and not one that was dominated by the big battalions. FUNDING That meant it had to be an amount that could be funded by everybody, that could give us the wherewithal to support the families properly, and ensure that we could finance all the other aspects needed to consider, such as film production, digital media support, public relations and administration. Our original idea had been to create a charitable trust that people could fund but after discussions with Disability Rights UK, a charity well known to us, and one sympathetic to the opportunity of raising the issues that disabled people face. We devised a situation where DRUK would carry out the administration. Funders would donate to a charity that radically simplified the amount of contract work necessary. We asked another charity, LegaCare, to oversee the legal aspects of the work, and were delighted when the funders agreed to treat their funding as a donation, which obviated the need for contracts. This was a huge breakthrough. As it became clear that there was a will to fund this project, the financial targets we needed to hit began to take shape. This was probably the toughest part of the project. We were trying to recruit funders, which meant a discussion with every potential participant, a discussion that in some cases was blissfully simple and in others long and complex. At the same time we needed to find top-quality partners for the various components. We chose HTF Media to film the project. Its ability to script and translate to the screen the incredible stories that unfolded was absolutely key to the project’s success. The Relative was chosen as the digital media agency, and we asked Kevin Carr to join the project team to provide the PR insight, which was hugely enhanced by Carr Communications’ knowledge of the IP world and the issues that the campaign needed to highlight. Without any formal financial commitment we used the industry press to broadcast progress, and when we had enough momentum in May 2014, we held a meeting at Swiss Re for prospective funders to set out the proposition and to show how some companies had committed to it already. It was a wonderful moment when we realised that we had achieved viability for the project. Of course, many insurers fundamentally disagreed with each other on how the campaign should take shape. This was resolved by taking the decision to say to all funders and potential funders: ‘This is how it will work, and you are either in or out.’ Having created a team of partners who met regularly to review the project, the vital challenge was to find families that had a compelling story to tell. DRUK and a very committed disability activist Mary-Anne Rankin worked very hard to do this. The first few stories had to capture the imagination of advisers and the public and tell real stories that would touch people’s hearts. We believe those stories did. But for every family we accepted there were many we had to exclude. It was a heartbreaking task, but stories that were too similar to others or which were not geographically or personally diverse enough could not be included. The recruitment process was slower and more difficult than we had anticipated, mainly because it was so important to get it right. We realised that the families’ stories would be better and easier to follow if we released them over time. So, in October 2014 we launched Seven Families with the story of Tracey Clarke. Peter Le Beau is one of the founders of Seven Families, chairman of the IPTF and managing director of Le Beau Visage
Once you’ve identified a client you can prepare by researching their company which can normally be done online through their own website as well as that of Companies House. This will arm you with information on their accounts, as well as that of their company’s aspirations, and help you to demonstrate in a much more personal way the effect not having adequate protection in place could have on their business. When your clients are identified and engaged Old Mutual Wealth can offer both the support and the solution. For example, our business protection webpages contain a number of guides and case studies to help you set up the right solution for your client, as well tools to help you calculate cover and equalise premiums, and the trusts and cross option agreements required for shareholders. For your clients we have Protect, our Defaqto 5 Star rated life and critical illness cover which offers comprehensive cover and unique options such as permanent, flexible indexation and rolling term. In the end though, it’s your advice that could make the difference between a company surviving and failing.
Research
Get networking. Cold calling doesn’t usually go down well, especially with hard working business people. Attending local business clubs and events, or even running your own event, gives you the opportunity to build a relationship with potential clients face to face, or discover contacts that can provide referrals.
Networking
Colleagues can also be a fruitful source for leads. Brokers who arrange car, buildings, plant and public liability insurance could provide referrals to potential business clients. Accountants and solicitors who provide services to businesses may also be able to give you some leads.
Colleagues
CLICK ICON FOR VIDEO
The Clarkes were the first family to benefit from Seven Families. Tracey tells Fiona Murphy how she has launched her writing career
Interview
The write stuff
Fiona Murphy: What was the thing that helped you the most? Tracey Clarke: It was primarily having somebody there. Having a central hub, if you like; that was a massive bonus. The behind-the-scenes stuff: the backup, the training, the support, the people, were in many ways more important than the money. Obviously, the money was a bonus and if we [Tracey and her husband Tim] have actually had an income protection policy we would have known that the money would have carried on but because of the Seven Families, we knew it was only going to be a year. We used the money very differently to the way that we would have done, had it have been an ongoing thing. We were conscious of the fact that it would only last a year so we didn’t want it to become part of our day-to-day living. We were careful to invest in things that would make a difference to our future. The first thing was decent hiking boots, which made an immense difference to us because living on a boat is a rugged environment. The towpaths are very often rocky and flinty and they shred your shoes in no time. Previously we’d only been able to buy really cheap trainers or hiking boots or whatever and they just didn’t last five minutes; so it was a false economy but there was no way to invest in really decent ones because we just didn’t have the money. FM: You have software as well; did you purchase that or was that part of the project? TC: We bought the laptop with two of the monthly payments of the Seven Families. We tried a software package that we would have had to pay for but actually, I didn’t get on with it. It was awful so we took it off and we had a recommendation through the blind people’s Facebook pages of one that comes free with Windows and so I downloaded that. So that didn’t actually cost anything. What was incredibly valuable with Seven Families was having somebody come to me providing one-to-one training on how to use it. That is a massive investment in the future because if my vision does go to totality, which I’ve been told to expect it to do, then I can still carry on using the computer, which is amazing. It was also having people like Kevin Carr mentoring me and getting into the writing. That means a huge amount because it’s an unknown world to me. I’ve had a couple of commissions come out of the Seven Families projects. There are all sorts of exciting things just beginning to rumble and possibly kick off now, as a result of all of that. LV= in Bournemouth has invited us to go and attend a meeting and talk to staff to give them some idea of what it means; what they’re selling actually does mean something. FM Is there anything you would have changed? TC: That’s a hard one to answer because we were the first family. Peter LeBeau has not argued against this when we’ve chatted with him. The project evolved as it went along and because we were the first family, we were the first guinea pigs. That’s not a criticism; that’s just a simple fact of the way that it went. I would suspect, if the project ran again, it would be much more structured from the beginning, whereas I got the impression that we came on board and it was like, ‘oh, heck! What do we do now?’ I don’t mean that in an unprofessional way but the whole thing evolved as it went along. If there’s one constructive criticism, it would be to have had the link of a case manager from the very beginning. We didn’t meet our case manager until probably well over halfway through the year and we then felt there’s a hurry to move things along. If we’d have met him from the very beginning, then that would have made an immense difference in the way that we would have understood how the project was working. At the beginning, we hadn’t got our heads round what it was actually really about; our understanding of the whole project evolved as the year went on, in much the same way that the way that it was managed went on and evolved as well. FM: Can you tell me a little bit more about your thoughts about the way insurers talk and behave and what needs to be improved? You asked insurers to communicate better at the Seven Families conference. TC: I felt a bit unfair [at the Seven Families conference day] because I was aware that we were there in your world. It’s understandable that you speak the jargon. I was trained in the medical profession; I’m used to jargon. I was very aware of Tim, he has a background in finances and accountancy and worked in insurance at one stage. He picked up some of the jargon from when he was working in the industry but he struggled to understand some of what was said at that meeting. There’s probably some merit for people within insurance, especially people that are writing leaflets and websites and information sheets to it and then give it to a Joe Bloggs in the street to say, do you understand the terminology in it? Years and years ago we were talked into umpteen different policies: I believe it was critical illness cover, and critical accident cover and life cover and loss of income cover. With Seven Families there’s such a powerful set of videos there, and there’s vast amounts of video footage that hasn’t yet been used as well. Somehow that’s got to be harnessed to somehow try and get the message out to people that this is for real, don’t leave it to hindsight. Think about it now, think about it carefully. It could happen to you..
“Unfortunately, people still assume that someone will ‘look after’ them should the worst happen: in many cases that person being the state or their employer”
Stephen Crosbie explains why income replacement strategies should be a focus during working lives, not just for retirement
Aegon comment
Make income replacement a top priority
When speaking to your clients, what do they say their most valuable assets are? Is it perhaps their house, or maybe their car? Could they imagine for a second not insuring them? Similarly for business owners who insure their premises, what would happen if one of their key employees unexpectedly became unable to work? Would the costs of having to pay or replace this employee for a period of time have a serious impact on their business? While your client’s car, house and business premises are important, arguably the most important asset is their ability to earn an income. But somehow the thought of insuring that income never quite manages to get to the top of the priority list. Acording to the Association of British Insurers, they are more likely to pick up a policy for their pet (one in five cat and dog owners take out pet insurance) than buy one that safeguards the money they live off (only one in 100 households currently having income protection (IP) in place). DID SEVEN FAMILIES WORK? Yes. According to Swiss Re’s latest Term & Health Watch, there was an increase of 10.7% in IP sales across the UK in 2015. And we believe some of this increase can be attributed to the work of the Seven Families campaign. However, there is still a great deal of scope for growing the IP market. For example, the continued use of real-life examples to demonstrate that while a one-off payment may look impressive, it’s no substitute for a steady income, especially at a time of need. Overall, we believe the Seven Families campaign has effectively raised the profile of both IP and protection in general in the industry by increasing its share of voice within the trade press. However, more still needs to be done to raise public awareness of the financial impact of long-term illness or disability. PUBLIC AWARENESS Do your clients have plans in place to support their family and maintain their lifestyle should they become unable to work? Unfortunately, people still assume that someone will ‘look after’ them should the worst happen: in many cases that person being the state or their employer. Clients need to wake up and realise that the days of state support in times of trouble are long gone. And while some employers may offer some form of income support, many will not. Employment Support Allowance currently stands at £73.10 a week (for the first 13 weeks if you’re 25 years or older). When you compare this with the Office of National Statistic’s average salary of £528 a week, the future could be bleak, without dipping into savings or taking out some form of income replacement protection. So, should your clients fall ill or have a debilitating accident, they need to seriously consider how they would support themselves and their family over what could be a long period of time. It’s difficult to imagine how people would manage to pay their regular bills without a source of income. And it’s a worrying fact that many over estimate how much they would receive from their employer or the state if they were on long-term leave due to sickness or accident. It’s often argued that IP is the foundation to any holistic financial planning advice and the most important form of financial protection available. Having IP in place gives your clients a safety net should the worst happen. DEMYSTIFYING IP When we understand the need to save throughout our careers to build up a pension that will provide an income in retirement, it’s strange that we don’t afford the same priority to making monthly payments towards a policy that makes sure we don’t lose the income that supports us during our working lives. Working Monday to Friday, 9-to-5, is no longer the norm. Working patterns vary, and StartUp Britain has recorded a rise in the number of people opting to set up their own business. Couple this with the fact that government research highlights people are living longer, it begs the question: how do we fund these longer lives? With some form of IP in place, your clients would have a replacement income if they were struck down by accident, illness or disability. This can take a number of forms: IP, which pays the insured person a monthly benefit amount after the deferred period, if due to accident or sickness they’re still unable to work resulting in a loss of earnings or net profit; w Family income benefit, which pays out a monthly income until the end of the benefit term if the insured person either dies or is diagnosed with a terminal illness during the term; Family income benefit with critical illness, which pays out a monthly income until the end of the benefit term if the insured person dies or is diagnosed with a critical illness. Key person IP, which pays the policyholder a monthly benefit amount after the deferred period, if due to accident or sickness the insured person is still unable to work. This benefit can be used to either help pay for a replacement employee or to help cover the loss of profits. Executive IP, which pays the policyholder a monthly benefit amount after the deferred period, if due to accident or sickness the insured person is still unable to work resulting in a loss of earnings. This allows the policyholder to insure the taxable earned income of valued employees. Income replacement should be a central theme to the financial strategies we employ for every stage of our lives. We’re passionate about protecting families and businesses against life’s uncertainties, but we don’t often get to see the positive impact protection cover has on our customers. So it’s been wonderful to see how Seven Families has helped real people in real-life situations. Moving forward, we all need to work together as an industry – insurers, advisers and reinsurers – to create effective solutions for this very real customer need. We should build on the success of this campaign by addressing the more holistic need for income replacement in general to try to close the protection gap and raise public awareness of this undersold, yet vital, protection cover. Stephen Crosbie is protection director at Aegon UK
“There has been a ripple effect triggered by Seven Families. The positivity it has created – through educational articles in the consumer press and the readily available (and moving) videos on the seven families – has brought income protection to a wider audience”
Seven Families has changed people’s lives for the better. Jeff Prestridge hopes the protection industry follows suit
Jeff Prestridge
The start of better things
Consumer money journalists don’t hand out praise lightly. Their reflex reaction to any money issue is to be a sceptic because the financial services industry rarely delivers on its promises. So when I boldly stated last December that Seven Families was the best financial campaign of 2015, I was putting my reputation firmly on the line. I was breaking a habit of a working lifetime by applauding, rather than scolding. Eight months on, do I regret my backing for Seven Families? Not one little bit. It is still my view that the campaign has been a success story on so many levels. Right from the moment that I interviewed Tracey Clarke in November 2014, the first of the ‘seven’ families to be assisted, I knew that the campaign had the potential to be groundbreaking. A brave initiative designed to demonstrate the value of income protection insurance – and the invaluable support that comes with such cover. A campaign that might blow away a few of the misconceptions that swirl around protection insurance: namely that insurers love taking the monthly premiums but hate paying claims. In April 2015, I had the privilege of joining Tracey, her guide dog Oakley and her delightful husband Tim aboard their 58ft barge on the River Lea. As soon as I set foot on the Sola Gratia, I could tell that the campaign had already begun to transform Tracey’s life. As a result of the £600 of monthly income from Seven Families, plus the superb assistance offered by care adviser RedArc and Action for Blind People (Tracey is slowly losing her sight), she had a confidence she did not possess when I initially interviewed her. She was determined to make a career as a writer and could not praise Seven Families enough. Without Seven Families, she would not found that confidence. Now that the campaign has drawn to an end, it’s fantastic to learn that five of its seven recipients are now back in some form of work. The campaign has literally transformed their lives. Yet just as importantly, there has been a ripple effect triggered by Seven Families. The positivity it has created – through educational articles in the consumer press and the readily available (and moving) videos on the seven families – has brought income protection to a wider audience. Swiss Re said as much in its 2015 review of the financial protection industry, stating that the campaign was one of the reasons why sales of individual income protection policies had increased by more than 10% last year (albeit from a pitiful level). Protection advisers said they found the campaign had helped them in encouraging clients to take the cover out. Yet Seven Families should not be the end. It should be the beginning. It’s imperative that the impetus of the campaign is not lost. It is key that the insurance industry does more to close the annual £200bn “disability protection gap” (Swiss Re) and arrest the “phase of decline” which has resulted in a losing of “consumer, government, third sector, media and financial adviser trust” (again, Swiss Re). How does it do this? It needs to market itself more effectively, extolling the virtues of the policies it sells and dispelling some of the myths that surround its wares (for example, that claims are never met – when more than 90 per cent are; that claim payments are long term and not limited). For far too long, protection insurers have been reactive rather than proactive, reacting to criticism over disputed claims rather than being bold and promoting the value of the cover they sell. Time for them to raise their heads above the parapets and shout: “Income protection is good!” It would also help if the protection insurance industry stopped navel gazing and thought about what consumers want. How about policies with terms and conditions written in plain English? How about cover that is updated to take into account medical advances, even if it means policyholders are asked to pay a little more in premiums? How about spending more money on self-promotion? How about being more sensitive over the handling of disputed claims rather than writing to policyholders in robotic and frankly unfriendly tones? In conclusion, Seven Families has helped some consumers better understand the value of protection insurance. So congratulations all round to those insurers which supported the campaign and to Peter Le Beau and Kevin Carr for driving it forward so masterfully. But it’s merely a step in the right direction. Much work needs to be done to make protection insurance the financial necessity it should be. If that financial nirvana is ever reached and the protection gap is closed, I promise you I will be the first to clap profusely and heap praise on the industry – for a second time. l Jeff Prestridge is personal finance editor of The Mail on Sunday
Paul Norbert is a driving instructor from Notting Hill. He has bipolar disorder, and Seven Families enabled him to retrain and start a degree. He tells Fiona Murphy his story
Driving ambition
Fiona Murphy: What were the benefits of Seven Families and how did it impact you? Paul Norbert: It was nice to have the support. It was also nice to have the money – I could treat myself, buy clothes and presents for myself and for my friends, and it paid for me to go back into training for work. It was also nice seeing certain people who helped me. There was one guy who was a CBT worker. I had about eight sessions with him, so there’s not much that could be done in that time. FM: Tell me about retraining as a driving instructor and your youth work degree... PN: I deferred my Open University degree last year because it was becoming too much for me and I was training to become a driving instructor at the same time. With bipolar and being a former drug addict, it was hard to focus. You’ve got to learn how to live again. Take shopping, for instance, just being in the supermarket without having a panic attack over knowing what to buy, so all of that was a learning process. I’ve just applied again to start my course again in October. It’s good to be working and no longer be on the dole, which sometimes was necessary because I was unwell for a long time. There was a sense of shame about wanting to work and having my self-respect back. FM: Was there anything that you would change or recommend that Seven Families did slightly differently to help you more? PN: Encourage the families to talk to each other if they want to. There were different people from different walks of life and it was inspiring to see other people and how they lived. With the [insurance companies involved], I haven’t been offered a deal asking if I would like insurance now. It would be good to be offered a policy hopefully with a reduced price. I would like to have insurance, because I knew how [unwell] I was before. God forbid I ever get sick in that way again, but it’s nice to have that cushion. FM: Is there anything you’d like to add? PN: At times when I was being videoed, I was battling with my emotions, and with the nature of bipolar sometimes you feel quite suicidal. I’m not always often suicidal, but the nature of bipolar means there are times where you feel like you’d rather end your life at times because your brain’s not producing chemicals to balance you. You’re either heavily depressed or you could be elated. That’s not a fine way to live. You want to be able to feel pretty cool because there is nothing really going wrong with my day, apart from how I feel inside which I can’t control. One of my main agendas was to get the message out there of what bipolar feels like. It’s not life-threatening like cancer, but it affects my life and is just as dangerous. It’s like you’re living with cancer in your brain and I wanted to make people aware of that. It’s not a moral weakness. It’s a mental weakness, but you feel like you’re ostracised because of that. When it happens too many times, you build up resentment against people who stigmatise you.
Vicky Pickford’s husband Paul was a car dealership owner before a brain stem stroke paralysed him overnight. She tells Fiona Murphy their story
Regaining control
Fiona Murphy: What were the best parts about Seven Families? Vicky Pickford: I met some great people through Seven Families. A few people who had similar injuries to Paul contacted me on Facebook, so we’ve met quite a few people who have gone through similar situations. It helped on a day-to-day basis to know that you are not on your own and you are not the only people going through something like this. I was 37, Paul was 42, and we’d just bought our house – it was an absolute ramshackle, but we had saved to do it up and we were doing it room by room. That was how we survived initially because I didn’t work from the minute Paul had his stroke. I was with him all day, every day at the hospital. Paul has always been the breadwinner and Seven Families gave him back that bit of independence and control. It also helped him because he wasn’t worrying about bills. We were able to buy things such as rehab equipment – we would have got it eventually, but we would have had to wait longer for it [without that funding]. It did a lot for Paul, mentally. FM: Your role has changed in caring for Paul. How has it affected you? VP: We were very secular and quite private. Initially, the Seven Families [media attention], was a bit of a shock and people contacted us saying: “You’re inspirational”. I don’t think we are. I think we’ve had to become what we’ve become to cope with the situation. But to know that us putting our story out there has helped others – that makes that intrusion of your privacy in a way worth it because you are opening up your heart and soul and feelings. I think I cried on every Seven Families video! Even nearly four years since Paul’s stroke, it’s still very raw. But to know that you can help someone else, and that what you’ve gone through can impact them, makes it worth it. FM: How is Paul’s condition? VP: We are regaining the arm movement. It’s a slow recovery and we don’t know where we’re going to get to. But Paul was in hospital for 14 months (he was in high dependency for five, ICU for a month) and he had horrific care – it’s easy to ignore someone who’s had a brain stem stroke. So I was constantly fighting with the hospital. He came home, we had a lot of trauma from that and three months after Paul got discharged, we moved house and we lost one of our dogs. To some people, it’s ‘just’ a dog, but we’d lost a lot at that time. We’re now doing a sit-to-stand so Paul, with help, can stand. Doctors told us that he would never eat, but we’re on normal foods now. The stomach tube’s gone and we’re taking all the medications orally. Although Paul has the deficits of the stroke, in himself, he’s healthy. FM: Where was there room for improvement with Seven Families? VP: It was daunting to go into it, to know that people are going to be scrutinising your life. I didn’t get any negativity. I know people have made comments, but I don’t read them because they don’t matter to me. The people who are going to be negative will probably be negative in numerous other situations. It’s great to be a keyboard warrior, but you are messing about with people’s lives and emotions. There were a couple of comments made, but those people don’t matter to me. FM: What are your plans for the future? VP: Paul’s doing a bookkeeping course. He’s also starting back doing a bit of research and a bit of online stuff for the company that he worked for, in the hope that he can get himself back up to date and up to speed to maybe do a couple of days a week. I’ve enrolled to do sign language at college – I should have done it last year, but we renewed our wedding vows in October and it got a bit hectic. We’ve got a new puppy and we’re booking a cruise. FM: A lot of my readers identified with Paul the most... VP: Paul lost a lot. He always wanted his own Citroën franchise. He always wanted his own car showroom and he’d just achieved it, then everything went completely pear-shaped. I like to think some good has come out of it, that we have helped and supported other people. It’s changed the way Paul looks at a lot of things; definitely changed the way that I look at a lot of things in life, and people. You appreciate the people that stand beside you because you lose a lot of friends. It’s not just the injury and the finances. There’s the emotional, the mental and the psychological side to things as well. FM: I know the equipment was something that helped Paul, but how was the rehab and support you received? VP: One of the insurance companies’ staff clubbed together and bought Paul a standing frame. They had a certain amount of money that they could allocate toward charities, and they chose to buy Paul the standing frame. They didn’t have enough. They were allowed to give only one charity so much money, and the staff clubbed together to make up the deficit. I was hysterical when I found out because these are people that we don’t know. It’s things like that that makes your day. You think you are on your own, but people do actually care. It upsets me every time I think about it because we’re so grateful. We use it every day and it really has made a difference to us, and to Paul in his rehab. It was lovely of them
“Changing the hearts and minds of the nation was a mighty ask, and one that remains. It is within our own industry that Seven Families resonated most" For those who find themselves unable to work because of accident or illness, they can expect little state support, and a complex claims and assessment process. People can turn to their employer for support, but less than half of employers offer more than basic Statutory Sick Pay. If a person is self-employed, they are on their own. Most UK households are financially vulnerable: many are less than one monthly pay cheque away from financial crisis. The UK is vastly underinsured: most people find it difficult to understand the everyday risks that they face, and are ignorant to the consequences and implications of those risks happening. When presented with the idea of financial protection, a common objection is, “It won’t happen to me.” People remain unconvinced by facts and statistics. Triggering the power of emotion As an industry obsessed and surrounded by numbers, percentages, jargon and complexity, we struggle to get across why protection is important. The truth be told, we’re a bit short on emotion and the all-important human touch. Supporting Seven Families was an easy and quick decision for us to make at LV=. We supported the refreshing approach of showcasing real people stories and the collaborative nature of a charity-based initiative. Seven Families has shown that tragedy can happen to anyone, at any time: no one knows what’s around the corner. The after-effects can be devastating and life changing. Each of the seven families has their own compelling story to tell: the people involved are real, we get to know them through a series of short films (and for the more social media savvy, through posts and updates on the likes of Facebook and Twitter). Not only has Seven Families helped to highlight people’s financial vulnerability; it has also cast the spotlight on the value of income protection (IP). Each family has certainly welcomed the financial support provided through an ‘equivalent replacement income’, but the additional services – which are often overlooked – such as rehabilitation, counselling and back to work support have proven an absolute godsend and positively life-changing for every family involved. Seven Families has helped to demonstrate the true value of protection and what it means in real terms. Seven Families has showcased thought-provoking, heartrending and inspirational true stories. The films are candid and sensitive, and are only a few minutes long. The most striking film has to be the introduction to Paul and Vicky Pickford. In my opinion, it is the most powerful protection story the industry has ever produced: every LV= staff member and the thousands of advisers we’ve shown it to have been emotionally moved. It carries such a powerful message. It’s on the Seven Families site: free for all to use and view. Reaching the masses Massive credit is due to Peter Le Beau, Karin Lloyd and the core team that made Seven Families happen. A simple idea that proved far more complex to deliver. The objectives of the campaign were to highlight financial vulnerability and increase awareness among consumers. Getting so many organisations to ignore their self-interests and collaborate for a greater good was an achievement in itself. Part of that success was because there wasn’t a huge price tag attached, but that meant funds for promoting the initiative were relatively modest. Seven Families is a small-scale investment in the bigger scheme of things: media coverage across leading consumer titles appeared before millions of consumers, yet only fleetingly. Changing the hearts and minds of the nation was a mighty ask, and one that remains. It is within our own industry that Seven Families resonated most. The initiative and the stories have acted as catalysts to ignite the passion and commitment of advisers and distribution leaders. Many leading networks have been supportive and taken tangible steps to encourage their advisers to prioritise protecting income. It’s encouraging to read in the latest Swiss Re report that IP sales were up by over 10% last year; Seven Families undoubtedly contributed to that growth. From distributors and fellow providers I’ve spoken to, I sense a groundswell of positive sentiment, support and action around IP. Yet, it remains seriously undersold: less than 6% of new protection policies sold through advisers are IP. What more can be done? I draw inspiration from Mark Graves of Sesame Bankhall, who he believes advisers have a moral obligation to talk about IP with their clients. That obligation should lie in the heart and mind of the adviser: it’s easy to focus on other easier matters and ‘come back to protection at another time’. But ducking the issue is a dereliction of professional duty. Providers offer a range of tools and support to help advisers. The LV= Risk Reality Calculator has transformed protection conversations. It doesn’t talk about products, just ‘risk’ and in a simple, personal and powerful way. A number of distributors have integrated the tool into their own processes and client reports. LV= invites industry bodies, networks and advisers to adopt the idea and help ‘protecting income’ feature in every protection conversation. Providers work with advisers and with networks to offer tools, support and training – helping better protect income and ensure good customer outcomes. Exeter’s Protection Path and our Wake Up to IP sessions are two examples of the ongoing support available. At LV=, we have extended our IP summer school webex series (over 500 sessions booked and more coming). And we’re prepared to offer tailored IP training to every adviser in the UK, if they want it. Hard facts are important, but as an industry we don’t always humanise insurance, or explain why people should have it. If you haven’t yet checked out Seven Families, you should share the stories with your clients. We believe this should be the close of the first chapter for this ground-breaking initiative. We’re up for more collaboration, a stronger focus of delivery superior customer outcomes and investing more to support advisers. We look forward to participating in the next phase and helping to protect more people across UK. Justin Harper is head of marketing at LV=”
Adding the human touch helped to demonstrate the true value of protection, writes Justin Harper
LV= comment
As the first chapter closes
Do these facts sound familiar? At any one time, about two million people of working age are off work due to long-term sickness and disability: For those who find themselves unable to work because of accident or illness, they can expect little state support, and a complex claims and assessment process. People can turn to their employer for support, but less than half of employers offer more than basic Statutory Sick Pay. If a person is self-employed, they are on their own. Most UK households are financially vulnerable: many are less than one monthly pay cheque away from financial crisis. The UK is vastly underinsured: most people find it difficult to understand the everyday risks that they face, and are ignorant to the consequences and implications of those risks happening. When presented with the idea of financial protection, a common objection is, “It won’t happen to me.” People remain unconvinced by facts and statistics. TRIGGERING THE POWER OF EMOTION As an industry obsessed and surrounded by numbers, percentages, jargon and complexity, we struggle to get across why protection is important. The truth be told, we’re a bit short on emotion and the all-important human touch. Supporting Seven Families was an easy and quick decision for us to make at LV=. We supported the refreshing approach of showcasing real people stories and the collaborative nature of a charity-based initiative. Seven Families has shown that tragedy can happen to anyone, at any time: no one knows what’s around the corner. The after-effects can be devastating and life changing. Each of the seven families has their own compelling story to tell: the people involved are real, we get to know them through a series of short films (and for the more social media savvy, through posts and updates on the likes of Facebook and Twitter). Not only has Seven Families helped to highlight people’s financial vulnerability; it has also cast the spotlight on the value of income protection (IP). Each family has certainly welcomed the financial support provided through an ‘equivalent replacement income’, but the additional services – which are often overlooked – such as rehabilitation, counselling and back to work support have proven an absolute godsend and positively life-changing for every family involved. Seven Families has helped to demonstrate the true value of protection and what it means in real terms. Seven Families has showcased thought-provoking, heartrending and inspirational true stories. The films are candid and sensitive, and are only a few minutes long. The most striking film has to be the introduction to Paul and Vicky Pickford. In my opinion, it is the most powerful protection story the industry has ever produced: every LV= staff member and the thousands of advisers we’ve shown it to have been emotionally moved. It carries such a powerful message. It’s on the Seven Families site: free for all to use and view. REACHING THE MASSES Massive credit is due to Peter Le Beau, Karin Lloyd and the core team that made Seven Families happen. A simple idea that proved far more complex to deliver. The objectives of the campaign were to highlight financial vulnerability and increase awareness among consumers. Getting so many organisations to ignore their self-interests and collaborate for a greater good was an achievement in itself. Part of that success was because there wasn’t a huge price tag attached, but that meant funds for promoting the initiative were relatively modest. Seven Families is a small-scale investment in the bigger scheme of things: media coverage across leading consumer titles appeared before millions of consumers, yet only fleetingly. Changing the hearts and minds of the nation was a mighty ask, and one that remains. It is within our own industry that Seven Families resonated most. The initiative and the stories have acted as catalysts to ignite the passion and commitment of advisers and distribution leaders. Many leading networks have been supportive and taken tangible steps to encourage their advisers to prioritise protecting income. It’s encouraging to read in the latest Swiss Re report that IP sales were up by over 10% last year; Seven Families undoubtedly contributed to that growth. From distributors and fellow providers I’ve spoken to, I sense a groundswell of positive sentiment, support and action around IP. Yet, it remains seriously undersold: less than 6% of new protection policies sold through advisers are IP. What more can be done? I draw inspiration from Mark Graves of Sesame Bankhall, who he believes advisers have a moral obligation to talk about IP with their clients. That obligation should lie in the heart and mind of the adviser: it’s easy to focus on other easier matters and ‘come back to protection at another time’. But ducking the issue is a dereliction of professional duty. Providers offer a range of tools and support to help advisers. The LV= Risk Reality Calculator has transformed protection conversations. It doesn’t talk about products, just ‘risk’ and in a simple, personal and powerful way. A number of distributors have integrated the tool into their own processes and client reports. LV= invites industry bodies, networks and advisers to adopt the idea and help ‘protecting income’ feature in every protection conversation. Providers work with advisers and with networks to offer tools, support and training – helping better protect income and ensure good customer outcomes. Exeter’s Protection Path and our Wake Up to IP sessions are two examples of the ongoing support available. At LV=, we have extended our IP summer school webex series (over 500 sessions booked and more coming). And we’re prepared to offer tailored IP training to every adviser in the UK, if they want it. Hard facts are important, but as an industry we don’t always humanise insurance, or explain why people should have it. If you haven’t yet checked out Seven Families, you should share the stories with your clients. We believe this should be the close of the first chapter for this ground-breaking initiative. We’re up for more collaboration, a stronger focus of delivery superior customer outcomes and investing more to support advisers. We look forward to participating in the next phase and helping to protect more people across UK. Justin Harper is head of marketing at LV=
In 2013 Nikki Thornley, a police officer in Aberdeenshire, set off with her husband for a motorcycle trip around Europe to celebrate his birthday. But an accident in the Borders meant that they never left Scotland. Nikki was left paralysed and spent 11 months in hospital. The Seven Families project meant she has now returned to work in a different role. She discusses her experiences with Fiona Murphy
Safety net
Fiona Murphy: What were the real pros of the project for you? Nikki Thornley: The filming was something positive to look forward to, among the stress of coming home after being in hospital. Seven Families took the pressure off: it was a real light moment. And having all of the services under one umbrella, such as the nurses and my case manager, was really helpful. It also opened my eyes to insurance. It helped me realise we should have had it in place, which I would have done, had I not been on a career break. FM: How did the financial support help you? And what would you have done financially if you had not been part of Seven Families? NT: That was massively helpful and we were so grateful for it. I was waiting to go back to work after I came out of hospital. It gave us a safety net, which meant that I didn’t have to rush quite so much to get back. It allowed us, particularly me, to take a little bit of extra time, and it more or less covered my wages so we could pay bills. We had started to build a house [before the accident], and the money enabled us to do that or else we wouldn’t have been able to start. My husband was under enough pressure as it was, trying to manage everything, so it took a little bit of pressure off him. FM: What are your plans now? NT: I’m back at work full time now and recently started a new position. I’m working in the CID department in an intelligence role. I applied for it and I interviewed for it, as opposed to one that I’d been put in just temporarily to ease me back in, which is what I had done previously. I feel really quite chuffed that I’ve got a job that interests me that makes me feel a valued part of the organisation rather than just: ‘We’ll give her that to do to make her feel like she’s doing something.’ It’s a really great job. FM: As someone who didn’t have insurance, what would you like to say to the industry? NT: I’d always been fairly blasé about insurance because you get people ringing you up, and I would say ‘I’m covered with work.’ It didn’t cross my mind that I wasn’t covered while not being at work. I wonder if [insurers] can get some kind of notice out when people do go on a career break like I did, to remind them [about insurance]. Seven Families was a worthwhile project, and I felt privileged to have been chosen to take part in it. It gave me something to look forward to. And it may have been nice to have had them involved really early on in the process, to help you see how far you’ve come, but I just felt really glad to be involved. I’m very grateful to everybody and just want to convey my thanks to them.
“The industry can unite around a common cause and work together constructively to promote the value of the industry and to help others. We work in a fiercely competitive world, but sometimes in the right circumstances we have the ability to work together" For those who find themselves unable to work because of accident or illness, they can expect little state support, and a complex claims and assessment process. People can turn to their employer for support, but less than half of employers offer more than basic Statutory Sick Pay. If a person is self-employed, they are on their own. Most UK households are financially vulnerable: many are less than one monthly pay cheque away from financial crisis. The UK is vastly underinsured: most people find it difficult to understand the everyday risks that they face, and are ignorant to the consequences and implications of those risks happening. When presented with the idea of financial protection, a common objection is, “It won’t happen to me.” People remain unconvinced by facts and statistics. Triggering the power of emotion As an industry obsessed and surrounded by numbers, percentages, jargon and complexity, we struggle to get across why protection is important. The truth be told, we’re a bit short on emotion and the all-important human touch. Supporting Seven Families was an easy and quick decision for us to make at LV=. We supported the refreshing approach of showcasing real people stories and the collaborative nature of a charity-based initiative. Seven Families has shown that tragedy can happen to anyone, at any time: no one knows what’s around the corner. The after-effects can be devastating and life changing. Each of the seven families has their own compelling story to tell: the people involved are real, we get to know them through a series of short films (and for the more social media savvy, through posts and updates on the likes of Facebook and Twitter). Not only has Seven Families helped to highlight people’s financial vulnerability; it has also cast the spotlight on the value of income protection (IP). Each family has certainly welcomed the financial support provided through an ‘equivalent replacement income’, but the additional services – which are often overlooked – such as rehabilitation, counselling and back to work support have proven an absolute godsend and positively life-changing for every family involved. Seven Families has helped to demonstrate the true value of protection and what it means in real terms. Seven Families has showcased thought-provoking, heartrending and inspirational true stories. The films are candid and sensitive, and are only a few minutes long. The most striking film has to be the introduction to Paul and Vicky Pickford. In my opinion, it is the most powerful protection story the industry has ever produced: every LV= staff member and the thousands of advisers we’ve shown it to have been emotionally moved. It carries such a powerful message. It’s on the Seven Families site: free for all to use and view. Reaching the masses Massive credit is due to Peter Le Beau, Karin Lloyd and the core team that made Seven Families happen. A simple idea that proved far more complex to deliver. The objectives of the campaign were to highlight financial vulnerability and increase awareness among consumers. Getting so many organisations to ignore their self-interests and collaborate for a greater good was an achievement in itself. Part of that success was because there wasn’t a huge price tag attached, but that meant funds for promoting the initiative were relatively modest. Seven Families is a small-scale investment in the bigger scheme of things: media coverage across leading consumer titles appeared before millions of consumers, yet only fleetingly. Changing the hearts and minds of the nation was a mighty ask, and one that remains. It is within our own industry that Seven Families resonated most. The initiative and the stories have acted as catalysts to ignite the passion and commitment of advisers and distribution leaders. Many leading networks have been supportive and taken tangible steps to encourage their advisers to prioritise protecting income. It’s encouraging to read in the latest Swiss Re report that IP sales were up by over 10% last year; Seven Families undoubtedly contributed to that growth. From distributors and fellow providers I’ve spoken to, I sense a groundswell of positive sentiment, support and action around IP. Yet, it remains seriously undersold: less than 6% of new protection policies sold through advisers are IP. What more can be done? I draw inspiration from Mark Graves of Sesame Bankhall, who he believes advisers have a moral obligation to talk about IP with their clients. That obligation should lie in the heart and mind of the adviser: it’s easy to focus on other easier matters and ‘come back to protection at another time’. But ducking the issue is a dereliction of professional duty. Providers offer a range of tools and support to help advisers. The LV= Risk Reality Calculator has transformed protection conversations. It doesn’t talk about products, just ‘risk’ and in a simple, personal and powerful way. A number of distributors have integrated the tool into their own processes and client reports. LV= invites industry bodies, networks and advisers to adopt the idea and help ‘protecting income’ feature in every protection conversation. Providers work with advisers and with networks to offer tools, support and training – helping better protect income and ensure good customer outcomes. Exeter’s Protection Path and our Wake Up to IP sessions are two examples of the ongoing support available. At LV=, we have extended our IP summer school webex series (over 500 sessions booked and more coming). And we’re prepared to offer tailored IP training to every adviser in the UK, if they want it. Hard facts are important, but as an industry we don’t always humanise insurance, or explain why people should have it. If you haven’t yet checked out Seven Families, you should share the stories with your clients. We believe this should be the close of the first chapter for this ground-breaking initiative. We’re up for more collaboration, a stronger focus of delivery superior customer outcomes and investing more to support advisers. We look forward to participating in the next phase and helping to protect more people across UK. Justin Harper is head of marketing at LV=”
Now the Seven Families campaign has come to an official end, has it been deemed a success, and what has been learnt? The Seven Families founders think so...
The legacy
Building on the legacy
The most notable achievement with Seven Families is having helped seven brave and resilient families to weather a very difficult period in their lives, with five of the seven recipients returning to work or making concrete plans to do so. This is testament to both their courage and desire to recover, but also to the quality of support given to them. Competing insurers and reinsurers collaborated for the first time for the greater good of the industry, and the adviser market was significantly energised, with increased income protection (IP) sales reported. Importantly, a great deal was learnt about what is most valued by people struck down by long-term incapacity. While money is important, it clearly came through how vital the emotional and practical support given by case managers and organisations like Red Arc and Best Doctors can be. In all of these respects the campaign has had a hugely positive effect. Changing consumer behaviour was always going to be a difficult part of the campaign, as this generally requires funds that far outweigh the budget available. However, meaningful exposure was created and IP has been in the consumer media spotlight in a positive light, so while there is still work to do, significant inroads have been made. Over the course of the campaign, Seven Families achieved 752 pieces of media coverage, with a value of £1.5m (equivalent to the cost of buying the ad space), reaching an audience of 113 million (this represents the total audience, so includes people who may have read multiple pieces of coverage, rather than unique readers). True to the aim of the campaign, 96% of all media coverage talked about IP. A major part of Seven Families was the films made to update followers on each family’s journey, which collectively achieved 287,000 views across Facebook and YouTube. IP sales are also on the up. In the past year, there was an increase in sales of 10.6%, while the most recent industry figures from the Association of British Insurers showed that the number of individual IP plans in force has risen for the first time since 2007. While we cannot directly attribute this to Seven Families, the increasing number of advisers discussing the product, and an increase in mentions of IP in the media, can only have aided this positive step. There is a long way to go before IP becomes mainstream, but this campaign serves as a blueprint for what could be achieved in the future. KEY LESSONS What have been the key learnings from Seven Families? Peter Le Beau, one of the founders of Seven Families, said with a total budget of £400,000 its scope to change consumer perception needs to be viewed realistically. “Seven Families was always designed primarily to inspire and help advisers. We learned many things during the course of it, but there are three that are particularly important. “Firstly, the industry can unite around a common cause and work together constructively to promote the value of the industry and to help others. We work in a fiercely competitive world, but sometimes in the right circumstances we have the ability to work together. “Secondly, a lot can be achieved with relatively little. No family received more than £22,000 in benefits and some received much less. The benefit was only paid for a year. Yet most families really thrived during the campaign and used the money and the support services to restructure their lives very effectively in most situations. There are lessons for us here in meeting customer need and product design. “Thirdly, with help, support and a positive attitude, even gravely stricken people can return to work in some form. Five of the seven situations saw the recipient of the benefit return to some type of work. Some of the families, like Tracey Clarke and Paul Pickford, have radically restructured their lives. Others like Nikki Thornley and Paul Norbert are back doing, more or less, what they did before they became ill. The quality of rehabilitation, therapy and emotional support that we have at our disposal in this industry is tremendous. Coupled with the unquenchable spirit that these families displayed, you really can move mountains. That’s a wonderful thing to learn. “My final thought is that if you have a vision, don’t let people talk you out of trying to realise it. Many people thought it would be impossible to bring the industry together around a common cause and really help some seriously ill people. Seven Families shows just what can be done.” THE SEVEN FAMILIES Industry consultant Karin Lloyd, who was heavily involved with each of the seven families from the beginning, reflected on the difference the campaign has made to their lives: “What’s really struck me is how far all of the families have come from those first introductory films, where life was so difficult and uncertain. “Some are now back at work or well on the way and all talk about a positive future in a way that wasn’t possible when we first met them. All have spoken about what a positive experience it’s been, how much they have valued the support (both practical and emotional, as well as the money), and what a difference Seven Families has made to their lives. “But the real point is all we set out to do was to replicate what good insurers do as a matter of course. Yes, it’s an artificial situation and yes, everyone involved went above and beyond the call of duty. But the vast majority of what was deemed so valuable by the families themselves reflects the best of what insurers do every day. “The case managers who featured in our films, CBT Services and the Red Arc nurses, are passionate about their work to help people into a better place, and for the cynics out there, it’s also good to know that the reason they are employed by insurers is that it makes financial sense for them too. “No one has to rely on pure altruism here. It really is in the interests of all concerned to invest in the vast field of information, therapy, equipment, listening ears, creative support and ‘navigating the system’ that we encompass when we talk about rehabilitation in our industry. “For me, one of the unexpected benefits of showcasing this side of our work has been the sense of pride felt by people who do this as a job. Too often they are hidden behind the scenes, going unrecognised for the trust and confidence they bring to a brand through their human connections because (and I make no apology for saying this again and again) it’s people and their messy, complicated, unique lives that are at the heart of this business. “When we started Seven Families, we didn’t know how it would all turn out and I’m delighted that our families are all in a better place. If you needed convincing, watch the films again – it just works.” THE IMPACT ON ADVISERS Roy McLoughlin of Master Adviser, who helped steer Seven Families, thinks that the fact IP continues to be outsold by life and critical illness cover, when it is the most likely product to claim on before the age of 65, is one of the most frustrating stats in the protection industry. “When one analyses why the extra sales occur for life and critical illness there is a strong theory that says the advisory community is partly to blame. This is often due to incorrect interpretations of IP and when it is appropriate to discuss it, coupled with an often incorrect assumption that it is harder to sell. “Seven Families had from the beginning many objectives, with a central one being to raise awareness within the advisory community. Life and critical illness cover are incredibly important products, but IP arguably should be the first protection product discussed and it is this awareness that we sought. “By engaging advisers through social media, we began this project. But what was evident early on was that discussing Seven Families face-to-face or by group presentations was always going to be more powerful. Thus helped by networks, the media, insurers, reinsurers and mortgage brokerages, we toured the UK meeting as many advisers as possible. The videos were incredibly powerful, but also the sales tips on discussing income protection with clients seem to have been very well received. The key now is to carry on this messaging and that’s where we need everybody’s help.” The key message to take from Seven Families is that everybody needs to think about what would happen if they couldn’t work for an extended period of time, and the campaign has definitely enhanced awareness of this. So what happens now? The founders of Seven Families are in talks with the funders of the campaign, and the wider industry, to discuss the next steps. Having seen the results of Seven Families, how do you think the protection industry can best build on its success?
Johnny Timpson investigates the project’s legacy
Scottish Widows comment
From Seven Families to your family
Why did Seven Families focus purely on raising awareness and resilience rather than product pushing? For too long, as an industry our message has been seen as a thinly veiled attempt to sell more policies. However, the Seven Families team wanted to truly make a difference. Health and disability charities detailed the needs presented to them in times of crisis, and highlighted loss of ability to earn as a key issue. The project at no point focused on any specific type of product solution. But it has been viewed by a number of journalists and advisers as an IP campaign. This is not the case, as five of our seven families could have made critical illness claims, and indeed, one did. And while that family paid off their mortgage with their claim proceeds, they quickly had another issue: a significant reduction in income. The replacement level of benefit available from working age welfare was not enough for them to maintain their level of lifestyle. We viewed it important to focus simply on improving financial resilience and demonstrating the benefits and outcomes of appropriate protection advice, product solutions, support services and rehabilitation interventions, rather than discuss specific protection products. Swiss Re’s recent Insurance Report and research from ‘The Syndicate’ continues to flag consumer mistrust in our industry and the perception of low levels of claim payments. The involvement of the insurance industry in the Seven Families initiative made some people suspicious. Which is precisely why we delivered the project devoid of any attempt to push insurance products. MOVING FORWARD The publication of claims statistics is useful progress but we need to do more and highlight the ease of the claim process, speed of claim payment and the benefits of added value services such as RedArc and rehabilitation interventions. The Seven Families project continues to engage the industry on a number of key issues that we need to address: Vulnerable customers and improving treatment, support and outcomes: This issue has been the focus of Financial Conduct Authority (FCA) Occasional Papers number 8 and more recently 17. All of the seven families taking part in the project can be categorised as vulnerable, and the video case studies serve as useful training material for advisers, business leaders and all staff serving and supporting vulnerable customers. The FCA has also highlighted the value of working with charities and the project has broken new ground for our industry by working in collaboration with the charity sector in common cause. Inclusive diversity: We have a record number of women in the workplace, establishing and leading their own businesses, as the sole and main bread winner in their households. But this is not mirrored in insurance coverage, despite us now witnessing the most significant reform of working age welfare since Beveridge, having a disproportional impact on women. The Chartered Insurance Institute recently launched its Women In Insurance programme to address this issue. Seven Families supports this, with the personal stories of four women involved in the project in its video material. Working age welfare reform: All seven families in the project thought that they could rely on the welfare state but have found it difficult to understand their entitlement, problematic and impersonal to claim, and the replacement level of benefits relative to their former level of income was low. Benefits were also conditional and in a number of instances means-tested, subject to a waiting period, time-boxed and capped. House and home security: With a significant number of mortgages unprotected and a growing number of those renting lacking savings or an income replacement contingency strategy, it is key that we discuss improving home occupancy resilience, especially with the welfare benefits supporting those mortgaged, in shared ownership or renting being reformed. The Seven Families material does this with a number of the families having faced, or facing, housing issues. Improving adviser use of social/workplace media, real case studies, interactive tools and storytelling: The Seven Families collateral that advisers can use freely, plus the project’s use of social media, radio, TV and consumer press (print and online) both supports advisers and provides an example of what can be done. Over the lifespan of Seven Families, the Intelliflo report shows that adviser use of social media is up for the third year running, with 70% of advisers engaging with social media for business purposes. This is up from 58% in 2014 and 61% in 2015. Seven Families has played its part here. BUILDING ON SEVEN FAMILIES With the demise of the Money Advice Service and the ambition of the Financial Advice Markets Review, it is key that the industry debates how we collaborate and work in common cause with others, such as health charities. The aim is to improve consumer awareness of the benefits of improved financial resilience, plus appropriate protection advice, propositions, support services and rehabilitation interventions. The good news is that recent improvement in IP sales and coverage is in part being attributed to the Seven Families initiative, and raising consumer awareness is high on the agenda of our professional, industry and trade bodies. WHAT WE COULD DO NEXT? Run another Seven Families-type initiative and perhaps focus on some additional family financial resilience issues beyond loss of income. For example, looking at long-term care needs and the benefits of a Lasting Power of Attorney. Take learnings from www.lifehappens.org, a not-for-profit adviser support hub in the US, and look at the national, month long, life and critical illness, IP and long-term care consumer awareness and education that it runs. Lifehappens.org’s branded social and worksite media material, tools and real video case studies are made available to advisers along with marketing consultancy if required. To address the growing protection need in the UK and to protect the country’s national and family prosperity, we need to work together to better engage consumers, clients and introducers through interactive storytelling, conversation and gamification, be it face-to-face, in the workplace or online. Because life does happen, and in many cases, has financial consequences for our families. Johnny Timpson is financial protection market manager at Scottish Widows
Daniel Pinder
Graeme Snell
Videos
Melanie Knight
