Royal London admits Bright Grey and Scot Prov were 'tired' propositions

clock

The CEO of Royal London has admitted that the insurance group's protection providers had 'tired' propositions in revealing a sharp fall in new protection business.

Royal London saw a 21% fall in new protection sales in 2014 from £439m to £346m, highlighted by a 23% fall in sales through intermediaries (from £436 m to £338m).

Meanwhile its direct to consumer protection sales rose 167%, although this accounted for only £8m of new sales.

Phil Loney, CEO of Royal London, told COVER: "There's no doubt that Scottish Provident and Bright Grey's propositions were getting a bit tired over the course of the year, so we've begun to reinvigorate them.

Loney also attributed part of the fall to 2013's figures including sales as a result of the gender directive, but noted that changes to the brands were starting to take effect.

In Q4 sales through intermediaries were up 5% on Q4 2013 to £99m.

Loney said: "In Bright Grey we've been making product and pricing improvements and we've really been focussing in critical illness on the core five reasons customers have for claiming and improving the quality of the product there and also on enhancing pricing.

"We've also improved service by introducing case management."

Loney added: "That's started to show through in sales in the fourth quarter, in Scottish Provident as well as improving service we've introduced a whole new front end, a much better digital front end."

In 2014 Royal London launched over 50s life cover sold directly to consumers.

The company was one of the first to adopt UnderwriteMe in 2014, along with Exeter Family Friendly, Scottish Friendly and SunLife.

Loney said of Bright Grey and Scottish Provident: "What we're aiming to do by the second half of 2015, is to bring the two businesses together into a single protection business using the best products and the best service from each business to form a single business branded under the Royal London brand."

Overall, total life and pension sales at the group rose 39% to £4.8bn.

More on Cashplans

COVER Excellence Awards Winners 2021 Special eBook now live!

COVER Excellence Awards Winners 2021 Special eBook now live!

Leading With Distinction

John Brazier
clock 17 December 2021 • 1 min read
AXA Health policyholders latest to gain Cleveland Clinic access

AXA Health policyholders latest to gain Cleveland Clinic access

Following Bupa and WPA agreements

John Brazier
clock 11 October 2021 • 1 min read
WPA policyholders gain Cleveland Clinic access

WPA policyholders gain Cleveland Clinic access

Bupa struck similar deal on Tuesday

Georgie Lee
clock 30 September 2021 • 1 min read

Highlights

The Rising Stars of Protection: Lauren Hygate

The Rising Stars of Protection: Lauren Hygate

“It all comes back to those real life stories that get shared”

John Brazier
clock 06 January 2022 • 7 min read
Blue Monday and beyond: The whole wellbeing proposition

Blue Monday and beyond: The whole wellbeing proposition

Latest COVER webinar

COVER
clock 04 January 2022 • 1 min read
The Top 20 Stories on COVER in 2021

The Top 20 Stories on COVER in 2021

The most-read news stories of last year

John Brazier
clock 04 January 2022 • 6 min read