Burgesses Disabilitysafe
HEALTH INSURANCE - 1ST JUNE 2004
The company:
Burgesses’ underwriting agency is run by managing director, Simon Burgess. The business has long offered good-value accident, sickness and unemployment and mortgage payment protection insurance cover, underwritten through a panel of leading insurers including Lloyd’s and undercutting better-known high street lenders.
The product:
Many accident, sickness and unemployment policies target “low-risk” occupations so, if a client is perhaps an offshore worker or security guard, they may be unable to obtain cover or may have to accept exclusions that could result in their policy having little value to them. Disabilitysafe takes a different approach. It offers:
Sickness and accident cover up to 100 per cent of income or a cash lump sum in the event of disability.
For all occupation groups, including high-risk groups. A new website enables intermediaries to access policy wordings, application and claims forms and an information request form that is then automatically emailed to Burgesses’ underwriting department. Offering a bespoke quotation service, the intermediary them gets a comprehensive quotation, including details of the agent commission, conditions and any cover restrictions that might apply.
Cover is available for anyone aged 18 to 70, anywhere in the world, irrespective of their occupation.
Competitiveness and price:
Due to the individual nature of the service, it is not possible to give specific examples, intermediaries may wish to try hard to place risks and then compare with any quotations received elsewhere. A key element of this plan will be the exclusions that do or do not apply, as well as the bare premium rates, so that needs to be factored in too when comparing quotes.
Options:
Type of cover required and level of benefit plus cover term and benefit payment period.
Marketing:
A four-page A4 brochure sets out how the scheme operates and includes an application form. Many intermediaries will find the website the most useful way of accessing the service though.
Customer care:
This will vary, depending on the underwriter used. Generally, Burgesses has clearly set out its customer complaints procedures and included comprehensive and clear literature and wording. Burgesses is offering a 24-hour underwriting turnaround time.
Commission:
20 per cent initial and renewal.
What they say:
Managing director Simon Burgess says: “We operate in markets where income protection insurers fear to tread. This includes polices forces, offshore workers and other high–risk occupations where income protection is not an option, due to price and strict underwriting by insurers. Short-term contracts, such as Disabilitysafe, must be given serious consideration by all brokers for most occupational groups. This is because most serious disabilities do not last fore more than six months. In addition, many income protection insurers will not even consider class IV (occupation group) risks, will load class III heavily and will not provide own occupation disability for either.”
What we say:
Many income protection insurers appear to want to take only low-risk business, despite the fact that higher-risk business can actually be more profitable – provided they price correctly. This bespoke service will not be necessary for every client but, where the risk is higher, it will be worth trying, if only to see whether Disabilitysafe can come up with a more attractive package than another insurer might.
Health insurance rating: 3.5 out of 5.
