Exeter Family Friendly chief executive Andy Chapman remains committed to the virtue of simplicity.
It could be said that Exeter Family Friendly sits at the break point between those providers considered large market players and the multitude of small friendly societies, some only active in their local environs. But it has big plans. The society is now in its second year after introducing its health and protection arms under the same brand.
Chief executive Andy Chapman said the idea was to create some simplicity in the market place, as the two distinct brands (Pioneer and Exeter Friendly) were causing an element of confusion. Although Chapman claims the move has worked very well, others do not appear to have followed.
“To us it is completely logical to bring healthcare with income protection together, but the market itself seems to be very different in terms of the distributors who sell these products,” said Chapman.
Beyond brand
This goes beyond brand though. Exeter has, perhaps uniquely, internally amalgamated a lot of the systems between the health and protection products.
“If you actually think about it, both products are insuring the person and the person’s health, so underwriting of new business is basically done in the same way,” Chapman said.
“Processing of the new business can be done under the same systems and, of course, claims underwriting is done by the same people. So internally there is a huge amount of logic and saving from bringing the two together because basically it is the same people doing the jobs.”
Chapman was hopeful the adviser market would move the same way, embracing the idea of an holistic overview of a clients needs rather than the silo approach separating health from protection.
Chapman said: “I think actually it is beginning to happen, people will see income protection as providing income if you are off work while private medical insurance can get people back to work more quickly. I think that message is coming through in the market place now although there are still an awful lot of intermediaries who keep the two very, very separate.”
Of course if simple products flood the market, their basic nature could hinder the holistic approach but Exeter remains a proponent of the concept and is open about sitting on the Treasury panel designing the concept.
“We are big fans of simplicity,” said Chapman. “We do not like to do anything complicated so simple products for us are a big ‘yes’. But product is not the only thing; it is processing and sales delivery as well. So, while we are fully in favour of simple products, it has to be a greater continuum than just, ‘there is the product, come and buy it’.
