Legal & General Insurance, in partnership with FinTech firm Salary Finance, today announces the launch of Protect; a mobile-first, group insurance solution that’s designed to revolutionise employee engagement with their benefits.
Aimed at businesses with 500+ employees, Protect brings to employees the kind of digital experience they’re used to in their day-to-day lives. The insurer says it offers an engaging solution that responds to unmet needs, extending Group Life cover, Income Protection and Critical Illness cover to entire workforces at no extra cost for the employer.
Employees can dial up and dial down cover across the three protection products, allowing a level of personalisation in a way that they believe cannot be found anywhere else in the market. This change in approach for group protection will make it more individual and will increase engagement with these benefits.
The new proposition is a key element in Legal & General’s mission to reimagine group protection. In partnership with intermediaries, the provider aims to elevate the conversation beyond product and price to outcomes, in order to tackle the UK protection gap.
Personalisation & flexibility
Via the Protect solution employees can gain quick and easy access to Group Life cover, Critical Illness cover and Income Protection: on either an employer-paid or voluntary basis. Voluntary Income Protection is unique in the group market.
Protect provides the flexibility to offer a core level of cover paid for by the employer, with cover top-ups available which are competitively priced. Cover can be adjusted 24/7, 365 days a year, with no tie-ins and no need to wait for a once-a-year window to make changes.
Certainty & engagement
Legal & General have removed the pre-existing condition exclusions on Critical Illness cover with upfront digital medical underwriting, which brings more certainty at time of claim. Cover can be arranged in minutes, with instant decisions and generally no medicals required.
The set-up and implementation of the Protect solution comes at no cost for employers. HR communication support is also included to help encourage employees to engage with their benefits, and to help them understand how they can use the embedded mental health and wellbeing support services.
Greater value for the same spend
Legal & General suggests the following example scenarios where Protect could help employers achieve more with what they are already spending:
• Where employers have an existing budget for Life cover and want to offer Income Protection, but feel the cost is prohibitive – Protect can offer voluntary Income Protection and Critical Illness cover alongside Life cover.
• Where employers already offer a core level of cover – perhaps via an existing Flex scheme – and want to introduce more choice, flexibility and personalisation for all employees.
• Employers looking to reallocate existing spend away from any benefits that are assessed as not delivering value for money, in terms of employee wellbeing, engagement and absence management.
Bernie Hickman, CEO, Legal & General Insurance, comments: “Protect is a highly digital experience that brings amazing simplicity and great value to employers and employees. It is designed to generate a greater return on benefits spend, with higher engagement, leading to healthier, happier employees and reduced absence. Combining the low cost of group cover with the personalisation of retail products, we can give comprehensive and totally flexible cover at highly competitive prices.
“With Protect we’re engaging employees in the importance of insuring what is their most valuable asset; their ability to work and earn a living.
“To achieve this, we want to work with intermediaries to drive innovation in the group protection market, the way a tech company would. If we don’t, a tech start-up or a big tech company is likely to do it without us.”
Asesh Sarkar, Global CEO, Salary Finance, adds: “We are delighted to have partnered with Legal & General to launch Protect. Covid-19 has shown that we cannot take good health for granted. Millions of employees across the UK do not have the financial resources or insurance in place to protect themselves and their families in unfortunate and unforeseen times.
“Salary Finance’s Financial Wellness platform, coupled with Legal & General’s protection products, is an important step forward in our joint ambition to tackle the protection gap in the UK.
“We offer salary-linked savings, low interest loans, pay advances, all accompanied with financial education. The extension through this partnership into protection insurance brings a digital first approach, with employee engagement at the centre, to employers at no extra cost and brings employees better value than they can typically get in the open market.”