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Introducing PruProtect

Introducing pruprotect


Protection that goes further

PRUPM11013 UBD XX Sept 2013



  • Trends impacting protection
  • Facts, stats and quotes
  • Personal products
  • Business products
  • Vitality and Vitality Plus
  • Growing your business
  • Who is pruprotect Who is pruprotect1

    Who is PruProtect

    Make people healthier andenhanceandprotecttheir lives

    About pruprotect

    About PruProtect

    • PruProtect is a joint venture between Prudential and leading South African insurer, Discovery

  • By combining Prudential’s trusted reputation and Discovery’s history of creative insurance solutions, we’ve developed a new type of Serious Illness Cover
  • PruProtect builds on the success of PruHealth in the PMI market
  • Combined strengths

    Largest protection

    provider in SA

    Innovative products

    Service excellence

    Combined strengths

    Financial strength


    Highly respected


    Approx 7 million

    customers in the UK

    Protection and wellness is our core business

    Prudential Assurance Company has a Standard & Poor's rating of AA, March 2013

    Pruprotect claims experience 2012

    PruProtect Claims experience - 2012

    • 97.4% of Life Cover Claims paid out

  • 92.9% of Serious Illness benefits paid out
  • 94.1% of Income Protection benefit paid out
  • Income Protection was the highest claims paid ratio across other providers with similar products
  • Source: PruProtect analysis of Claims experience from January 2012 to December 2012

    Discovery life s 2012 claims experience

    Discovery Life’s 2012 claims experience

    99% claims paid vs declined claims

    • More than £19m were paid out in Serious Illness benefits

  • Over £60m Life Cover benefits were paid out
  • More than £104m has been paid out to claimants or their estates
  • The Global Education Protector currently covers the education costs of 3,378 children under Group Risk
  • Source: Discovery Life Claims experience from January 2012 to December 2012

    Discovery life s 2012 claims experience1

    Discovery Life’s 2012 claims experience

    Why 1% of received claims were invalid

    60% Non-disclosure

    24% Policy terms or conditions not met

    10% Misrepresentation

    99% paid

    6% Suicide within two years

    See our claims sales aid for more details

    Source: Discovery Life Claims experience from January 2012 to December 2012

    Discovery growth scale and relevance

    Discovery growth: scale and relevance

    Discovery Group membership growth


    Over 6 million members worldwide


    + 3.75 million

    +1.6 million

    + 2.5 million

    + 100,000

    + 600,000


    Standard Life acquisition


    June 93

    Discover Health Launch

    1997 Vitality



    Discovery Life




    Discovery Invest


    The Vitality Group

    Source: Discovery (2013)

    Continued growth in the in force portfolio no of policies

    Continued Growth in the In-force Portfolio – No. of Policies

    PruProtect Growth in In-force number of policies

    10.3% IFA

    Market share

    Continued growth in the in force portfolio annual premium equivalent

    Continued Growth in the In-force Portfolio – Annual Premium Equivalent

    PruProtect Growth in APE

    10.3% IFA

    Market share

    Pruprotect s model continuing to push the boundaries

    PruProtect’s model – continuing to push the boundaries

    Dynamic pricing

    Premium efficiencies

    Wellness underpin

    Current market

    Upfront efficiency

    Narrow once-off

    Broad definitions, multiple claims

    Value of benefits

    Our product evolution

    Our product evolution

    SIC Booster

    Vitality Optimiser

    1st Franchise

    TAM’s Launch

    Family Income Cover

    Education Cover

    Business Protection

    Relevant Life Policy


    Whole of Life

    Vitality Plus

    Health Cover June 2010

    Essentials Plan

    Nov 2009


    Sept 2007

    IP & SIC enhancements Apr 2009

    Premium Saver & Premium Discounts

    Nov 2011

    SIC & servicing enhancements

    Oct 2010

    Vitality enhancements

    Jan 2012

    Vitality with literewards

    Nov 2008

    An integrated approach across the protection spectrum

    High advice sales

    Needs based solutions

    Rich customer benefit

    Lower lapses

    An integrated approach across the protection spectrum

    Intermediary benefits

  • Whole body coverage
  • Multiple claims capability
  • Improved consumer outcomes
  • Health partners and rewards
  • Customer benefits

  • Continuous protection
  • Simple and fair
  • Wellness underpin
  • Our philosophy

    Continual and relevant innovation



    We offer a range of premium options to suit your clients’ financial situation

    • Have a look at our more affordable Essentials Plan

  • Vitality Optimiser – combining all the rewards of Vitality with an upfront discount on our award winning cover
  • Your clients can even earn reductions on their premiums by engaging in our Vitality programme
  • Our financial strength and stability

    Our financial strength and stability

    Group history

    Group history

    • The Prudential Health Holdings Limited group of companies was set up as a joint venture between Prudential Assurance Company and Discovery (a South

      African insurer).

  • The joint venture comprises two businesses (1) a health business PruHealth, and (2) a protection business, PruProtect.
  • Originally this was a 50% / 50% joint venture.
  • In August 2010, Discovery purchased Standard Life Healthcare for £138m and placed this into the joint venture. At the same time the shareholding changed to Discovery 75% and Prudential 25%.
  • Legal entity structure

    Legal entity structure

    Discovery (SA)


    • The PHHL Group has two health companies, PHIL, which underwrites the ex-Standard Life Healthcare entity, and PHL, which underwrites the original JV PruHealth business.

  • PruProtect business is underwritten by PAC.
  • PHSL is the services company that employs all staff and holds all contractual arrangements and provides the distribution and administration services for both PruHealth and PruProtect.
  • 100%














    Note: All entities in the structure, other than Discovery, are UK registered.

    DiscoveryDiscovery Holdings Limited

    PrudentialPrudential Plc

    DOHLDiscovery Offshore Holdings Limited

    PACPrudential Assurance Company Limited

    PHHLPrudential Health Holdings Limited

    PHILPrudential Health Insurance Limited (formerly Standard Life Healthcare Ltd)

    PHLPrudential Health Limited

    PHSLPrudential Health Services Limited

    Group and shareholder performance

    Group and shareholder performance

    Prudential and Discovery display both scale and success in their markets overtime.

    Prudential Assurance Company (year to 31 December 2012)

  • Turnover:£14,116m
  • Profit/(Loss):£376m
  • Discovery Group (year to 30 June 2013)

  • Net Assets:£914m (15.22 Rand/GBP closing rate)
  • Turnover:£1,778m (13.98 Rand/GBP average rate)
  • Profit/ (Loss):£152m (13.98 Rand/GBP average rate)
  • Prudential Health Holdings Group (12 months to 30 June 2013)

  • Net Assets:£207m
  • Turnover:£339m
  • Loss before tax:£(11.0m) (stated after one off expense)
  • Financial strength ratings

    Financial strength ratings*

    • PruProtect business is written through Prudential Assurance Company Limited (PAC) in the Prudential Group. As a result, it benefits from the scale, diversity and solvency of PAC.

  • The major rating agencies have given the following ratings to PAC:
  • Correct as of May 2013



    • PruProtect’s Life and Serious Illness Cover products are reinsured by Hannover Life Re UK. They have an AA- (very Strong) financial strength rating from S&P and an A+ (Superior) from A.M. Best.

  • Gen Re reinsures PruProtect’s Income Protect products. Gen Re is a subsidiary of the Berkshire Hathaway Group and has been rated as AA+ by S&P.
  • Swiss Re reinsures the PruProtect over 50s products. Swiss Re is rated AA- by S&P.
  • All three of our reinsurance providers are in the world’s top five largest reinsurance groups.
  • From outset and on a continuing basis, our providers have participated in our business on financing and quota share bases.
  • This approach allows PruProtect to enhance its in-house risk expertise with continuing insight from some of the world’s leading risk professionals.
  • Our arrangements also demonstrate the confidence that these market-leading insurance organisations continue to hold in PruProtect’s products and pricing structures.
  • Further financial assurance

    Further financial assurance

    In addition to the financial strength illustrated by PruProtect, there are two further ways in which customers interests are safeguarded.

    The Financial Conduct Authority (FCA)

    • The FCA requires insurance companies to complete an Individual Capital Assessment (ICA) every year. The ICA is a worst case scenario test of extreme events which produces a capital reserve figure.  PruProtect is required to hold assets/reserves that amount to this figure i.e. to provide an additional margin of protection against significant adverse events  

    The Financial Service Compensation Scheme (FSCS)

  • The FSCS is the compensation fund of last resort for customers of authorised financial services firms. In the event that an insurer becomes insolvent or ceases trading FSCS can pay compensation to the customers of the insolvent insurer.
  • Insurance companies are required to pay into the FSCS for purposes of compensating customers in extreme circumstances, who have suffered financial loss following a company going insolvent.  All insurance companies pay into this scheme and it would cover up to 90% of a customer's claim amount.
  • Awards and recognition

    Awards and recognition

    Peter Chadborn, principle at IFA CBK, said: PruProtect has continued to innovate and challenge old thinking in the market. The industry needs such companies who are not afraid of breaking the mould in order to introduce new ideas.

    Vivien Hearn of Barfield Financial Advisers, said The PruProtect Policy is the best thing that has come to the market in the last 20 years.

    2009 - 2013

    2008 - 2013


    Introducing pruprotect

    If you’d like to know more, please speak to your Business Consultant or take a look at

    Thank you

    Category: Advisor

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