Today, price is a common decision factor for consumers when choosing financial products. Given the ongoing rising costs that have impacted many households, it's no surprise that individuals are increasingly concerned about affordability - with 62% in Great Britain saying they were spending less on non-essentials because of the increasing cost of living.
While it can be difficult to predict what drives premiums across insurance providers, most healthy consumers would expect to purchase life and protection cover at standard rates.
What exactly are standard rates, and why does it matter?
Standard rates are an underwriting decision that means an insurer is satisfied that based on all the information captured and assessed, there will be no adjustment to the base premium which is driven by an individual’s age and sum assured.
This rate is determined by insurers based on statistical averages for people with similar profiles - those who meet the standard criteria without any added risks like health conditions, smoking habits, or dangerous hobbies.
Insurers have their own criteria for deciding what constitutes "standard," but the rate is generally competitive and accessible to most applicants without requiring a premium (which is an extra charge for those with higher risk).
Supporting your clients with a transparent process
Picture the ideal client experience: You hop on a call with a customer, walk them through the process of selecting coverage, and - voila - most of the time, they're pleasantly surprised to receive a competitive standard rates decision. Understanding the rate structure easily is key to building trust with clients. It’s not just about getting insurance; it’s about ensuring that they are getting the most suitable protection product they need at a price they can afford.
The Protection Platform provides this transparency. 61% of applicants receive a “buy-now” standard rates decision on the Protection Platform, making it a market-leading destination for financial advisers looking to secure affordable protection for healthy policyholders. This means clients are more likely to secure a fair rate, even if they have some commonly disclosed conditions.
Clark Robertson, Development Underwriter for the Protection Platform, said:
"In today’s protection landscape, the number of applicants who are still able to receive standard acceptance rates for commonly disclosed conditions reflects the industry’s shift towards fairness and inclusivity. It’s great to see our insurer partners offering the vast majority of applicants who disclose these types of conditions standard rates, ensuring that most people can secure the protection they need, without paying an increased premium.”
Providing Standard Rates across most disclosures
Since the 1st January, data from the Protection Platform shows that on average 89% of applicants for Life Cover have been offered standard rates by our partner insurers for the top 10 most common health disclosures.
The data below is for Life, Critical Illness and Income Protection in the period 1/1/24 - 9/10/24
