Paul Robertson asks Mike Wagg about Simplyhealth's approach to a series of evolving markets.
“That may be the correct course of treatment, but it is about linking into the network, linking into our partners. It may be therapy that is required; it may be counselling that is required. But again, it is about delivering the right treatment for the individual at the right time.”
No discussion with Simplyhealth could be thought of as complete without touching on cashplans: one of the insurer’s core product lines.
Most advisers must now be well aware that the corporate paid schemes are selling very well, the market could be said to be booming, with double-digit growth over the past few years. But what of the other cashplans, the employee paid, the individual?
Wagg thinks this question would be better aimed at the intermediary market: “We work very closely with our intermediaries and they are offering that independent advice.
“We have seen particular growth in the corporate sector, I think between 2007 and 2011, there has been something like 120% growth, because during that period what we have seen is the greatest economic downturn of a generation. But does that trend follow through to other sectors of the marketplace? Well, one would think so.”
Of course, no product is an island, and pricing has its pressures in the cashplan arena too, even if the product for the employer buying it is it is relatively cheap for its perceived value.
Wagg, however, is not happy with the word ‘cheap’ in this context. His attitude suggests this is not the first time he has had to reiterate that cashplans are not a cheap substitute for PMI but are available in their own right.
Having got that off his chest, he added: “There are pricing pressures because the products need to be sustainable. And is sustainability drawn out of having a £1 a week policy that has been in the marketplace for a number of years now?
“The market is seeing product innovation, generally speaking, but the prices have tended to remain at that £1 a week.”
Simplyhealth made some changes to the benefits and changes to the pricing at the back end of 2012, which Wagg believes reflects that sustainability point, but also reflects the need for continued customer value.
He said: “We are now charging monthly premiums, as opposed to weekly premiums. We are finding that most of our customers tend to work to monthly payments and employees tend to be paid monthly, in the main. We have adapted as we feel we need to.”
Corporate cashplans are almost entirely sold by the intermediary market, as is PMI. So, products aside, what is on the horizon for the intermediary in the following year or so?
Perhaps unsurprisingly, thre most innovation the adviser will see will be technology-based, with the launch of new online functionality under the banner of Simply Admin.
Wagg said: “This will enable intermediaries, on behalf of their clients, to add members, to delete members, to request membership certificates, request member reports, request P11D reports, which has been very well received by our intermediary partners.
“Also to draw off online renewal documentation, rather than your documentation being sent through in the traditional sense, via email or paper-based, intermediaries can now draw that off the system.”
So the expected levels of intermediary administration is not likely to change too heavily as the introduction of the healthcare networks continues?
“I think this is more about the member: the member is making a claim, the member will contact us directly if they want to make a claim. It is unlikely that they would tend to go via the intermediary.
“In certain cases they will do but the intermediary admin burden, for want of a better word, that would be drawn out of the administration piece through Simply Admin.
“We are looking to make life easier and make it easier for intermediaries and clients to buy our products.”
