Accessible products to serve a wider scope of consumers need to be a priority, Pacific Life Re has said at the Protection Review 2012.
David Heeney, chief marketing officer at the reinsurer, speaking on a panel about evolving risk management and product design, said there were now opportuntities for insurers to pool risk.
He said: "Solvency II will drive very cautiously the risk life insurers will want to take on. If they sell more products to more people that is less of a risk. We need to grasp that and think more creatively about it."
Heeney added Pacific Life Re's number-priority was developing accessible products to offer meaningful options for a broad consumer base rather than a small minority.
He stressed to delegates: "One of the key factors that changes things is attitude to anti-selection. We have to be very, very conscious about that and shift away from risk aversion and serve a wider group of people more affectively."
Heeney added distribution needed to reach beyond IFAs but that was not to say they would not remain key.
Panellist Steve Casey, head of marketing and intermediary proposition development at Friends Life, echoed the view.
He said segmenting the market was key, and much-needed simpler products would not necessarily mean cheaper offerings.
One of six panellists Russ Whitworth, underwriting and claims director at L&G, flew the flag for Subject Access Requests as opposed to GP reports, and a need for insurers to guarantee payout for all claims.
He said: "A claims guarantee seems doable and gives out a great message. Why not have a line that says all claims will be paid?"
Fellow panellist Richard Freeman, business development director at MDG Capital, presented the case for an evolving era of data capture to build on product design.
He said transparency was key to change customer perceptions, adding: "But are insurer systems geared up to deal with a higher level of data from consumers?"
Fellow panellist Stuart Paton Evans, manager of business development at Hannover Life Re, pointed out there was "a really big step" between getting lots of good data and turning that into information to take more risk and include more people in the scope.
He added: "The new generation of future policyholders will choose to transact in a completey different way with technology. We need to change the mindset in the way we react."
Gender was also discussed. A delegate asked the panel about product development without gender pricing, and pricing on gender in different ways, such as breast cancer cover.
Heeney said: "We have to be careful of looking for soltuions that interpret gender pricing in a clever and different way. But I do think the industry will start to innovate differently after the removal fo gender pricing."
jules Constantinou, head of marketing at Gen Re, was also on the panel.
