NatWest Launches New Life Insurance, Critical Illness Cover and Over 50s Life Insurance for Retail and Mortgage Customers
NatWest launches a new range of protection insurance to its retail and mortgage customers, with a fast and intuitive digital experience that will enable homebuyers to obtain quotes and apply for vital protection cover in a seamless online journey.
The new product suite includes Life Insurance, expanded Critical Illness Cover, and Over 50s Life Insurance, helping widen eligibility and access to protection. Critical Illness Cover has been significantly enhanced for customers, now providing protection for 52 conditions.
Life insurance is now more prominent across NatWest’s innovative digital mortgage channels, including Mortgage Self Service, Digital Mortgages and the mobile app. Customers can see indicative pricing earlier in the process, benefit from pre‑populated quotes* and experience a smoother application journey.
Addressing the UK protection gap remains a priority, with data from The Financial Conduct Authority (FCA) highlighting that 58% of UK adults are currently without life cover.
By bringing a fully NatWest branded proposition to the forefront of the customer journey, the bank aims to increase visibility and confidence, encouraging more households to consider essential protection.
Toni Powling, Protection Lead at NatWest said: “We can now bring customers clearer, more comprehensive protection at a time when financial security matters more than ever. We’re making it simpler for people to understand their options and take steps to protect what’s most important to them.”
Customers can now benefit from a modernised digital platform to provide a more transparent with a user‑friendly experience, access to broader cover, clearer product information and simplified language.
These improvements have been shaped by research and customer feedback, to create a digital‑first protection experience that makes life insurance easier to understand and more accessible.
All products are underwritten by Aviva and NatWest protection customers will benefit from access to a range of added-value health and wellbeing benefits through the Aviva Digicare+ app.
Prudential Financial expands EssentialTerm suite, affordable and flexible life insurance to help protect what matters most
Prudential Financial, Inc. (NYSE: PRU) has announced the expansion of its EssentialTerm Suite for policies of $250,000 face amount and above, offering more consumers greater choice to match their individual needs and budgets. Designed with the flexibility to transition to permanent coverage for long-term financial security, the suite of solutions helps customers protect what matters most now and as their needs change.
Prudential’s EssentialTerm Suite features two enhanced term life solutions issued by Pruco Life Insurance Company. EssentialTerm Value® is Prudential’s most cost-effective option for consumers seeking temporary protection with the option to convert to a permanent policy as financial goals evolve. By converting to a permanent policy, consumers can benefit from lifelong coverage and additional benefits like cash-value growth. EssentialTerm Plus® offers a more robust conversion option for consumers who are focused on their long-term financial planning goals.
“At Prudential, we recognize the important role life insurance plays in safeguarding your life’s work, not only as death protection but for long-term planning,” says Rob Schaffer, Prudential’s head of Product Design and Innovation, Individual Life Insurance. “The EssentialTerm Suite bridges short-term needs with opportunities for lasting value, empowering policyholders to convert to permanent life insurance as their lives evolve.”
Key features of the EssentialTerm Suite include:
– Flexible Term Options: A choice of 10-, 15-, 20- or 30-year term durations, with guaranteed consistent premium payments throughout the selected term.
– Conversion to Permanent Policies: The ability to convert to one of Prudential’s permanent life insurance policies, maintaining the same health underwriting classification. Additionally, a conversion credit is available within the first seven years to help reduce premiums during the transition.
– Terminal Illness Rider: Automatically included, the rider allows access to a portion of the death benefit if the policyholder becomes terminally ill.
– Optional Riders: Customers can enhance the policy with additional riders, such as the waiver of premium in the event of disability, an accidental death benefit and convertible life insurance for a child.
The EssentialTerm Suite is designed with a quick and straightforward approval process, featuring online interviews that take approximately 20 minutes. It also qualifies for PruFast Track, Prudential’s accelerated underwriting process, which eliminates the need for medical exams and lab work. Additionally, applications can be seamlessly tracked and managed through Prudential’s new Life Case Tracker.
The EssentialTerm Suite joins Prudential’s comprehensive portfolio of term and permanent life solutions, including universal life, indexed universal life, indexed variable universal life and variable universal life insurance. “We’re expanding and enhancing our product portfolio to meet a wide range of life insurance needs, providing more protection and flexibility as financial needs change. We’re committed to helping our customers build financial security and unlock financial opportunities,” adds Schaffer.
Life insurance set to boom as interest rates surge, says Swiss Re Institute
Higher interest rates around the world are transforming the outlook for life insurance growth and profitability. Savings products are attractive to consumers after a decade of weak demand and low returns. Swiss Re Institute expects a new high for US fixed annuity sales this year after record sales in both 2022 and 2023.
Jérôme Jean Haegeli, Swiss Re’s Group Chief Economist, says: “Higher interest rates are a game changer, providing life insurance and pension products a tailwind to much better tackle the retirement savings challenges of ageing demographics. Savings products are attractive again as a direct consequence of normalising interest rates. Higher investment yields also benefit long-duration protection products.”
In its new sigma study, “Life insurance in the higher interest rate era: asset-savvy is the new asset-light”, Swiss Re Institute forecasts an additional USD 1.5 trillion in global insurance savings premiums over the next decade, as consumers are moving to buy life-savings products that secure higher retirement incomes. As a result, total global premiums are forecast to grow to USD 4 trillion by 2034. In contrast, global life insurance premiums grew by only USD 300 billion in the entire low interest rate decade of 2010 to 2019.
Paul Murray, Swiss Re’s CEO Life & Health Reinsurance, says: “Higher interest rates give consumers more attractive options to secure their retirement income and we are seeing very positive market growth for life insurance to meet this need. Higher interest rates also allow insurers to meet their cost of capital. Reinsurers can furthermore support life insurers by freeing up capital, boosting underwriting capacity and focusing on product innovation for capital-light growth.”
Significantly higher government bond yields are also now improving life insurers’ investment returns and margins for fixed annuities. Between 2022 and 2027, Swiss Re Institute forecasts the operating result for insurers in the largest eight life markets worldwide, which include the US, UK, Germany and Japan, to rise by more than 60% as investment income rises by 40%. The growth in life insurance products is an important mechanism to close the retirement savings gap, which Swiss Re Institute estimated at USD 106 trillion in 2022 for six advanced economies plus China and India.
Advanced markets to lead growth
Swiss Re Institute estimates that advanced markets will generate about 61%, or USD 900 billion, of additional premiums in absolute terms in the next decade, and emerging markets an additional 39% or USD 578 billion.
China alone will generate around 17% of the overall global additional premiums, adding USD 256 billion between 2025 and 2034.
The life insurance landscape is changing
Swiss Re Institute’s report also outlines the structure of the life insurance industry. It analyses how listed (stock) insurers, mutual insurers and private equity-owned business have reacted to a decade of low interest rates, for example by exiting core lines of business or shifting towards capital-light, fee-based strategies. The report examines how new market entrants from private equity absorbed the divested traditional assets through reinsurance transactions. Insurers and asset managers turned to alternative and illiquid investments to earn additional yield.
Today, insurers are expanding their asset management capabilities to grow their savings business, and private equity investors bring extensive asset management capabilities. Swiss Re Institute anticipates competition on asset management in life insurance, with, for example, large insurers acquiring private credit capabilities, and asset managers potentially acquiring insurance companies. Consumers should benefit from this environment through more attractive returns.
The report also explores the effects of rising yields on associated risks for life insurance, such as the threat of surging lapse rates. Swiss Re Institute analysis into lapse risk concludes that the peak is likely to have passed. Rising rates have also increased credit risk, particularly in areas such as commercial real estate, but the exposures of life insurers are viewed as manageable, on average.
Swiss Re Institute’s publication “Life insurance in the higher interest rate era: asset-savvy is the new asset-light” is available here.
BCC Iccrea Group and BNP Paribas Cardif sign a strategic partnership for life insurance in Italy
BCC Banca Iccrea, parent company of the BCC Iccrea Group, and the insurer BNP Paribas Cardif have signed a strategic bancassurance partnership in life insurance.
The choice of BCC Iccrea Bank (holding of the BCC Iccrea Group) came after a complex selection process involving several leading companies in the European insurance market with a consolidated position also in the life sector in Italy.
The proposal submitted by BNP Paribas Cardif, the insurance arm of the BNP Paribas Group stands out in terms of product range, with products customised specifically for the BCC Iccrea Group to support the sales network. Among other things, the agreement provides BNP Paribas Cardif with the purchase of 51% of BCC Vita, the BCC Iccrea Group’s life insurance company, set up in 2008 to promote life and protection insurance services through a wide range of policies able to meet the need of securing and protecting one’s savings. BNP Paribas Cardif will be able to extend the duration of the partnership up to a total of 15 years and to acquire an additional 19% of BCC Vita.
For the BCC Iccrea Group, the agreement will strengthen and align the product range of the 116 BCCs* that belong to the BCC Iccrea Group with respect to bancassurance, providing continuity to the commitment made by BCC Vita.
This agreement for exclusive distribution with BCC Banca Iccrea, holding of the second largest banking group in Italy by number of branches allows BNP Paribas Cardif to fulfill its diversification through new distribution networks, notably in Italy. At the same time, BNP Paribas Cardif will follow its strategic plan and its ambition to reinforce its position in the insurance market worldwide through new business opportunities.
A particular strategic role in the partnership will be played by BCC Servizi Assicurativi, the specialised insurance hub of the BCC Iccrea Group that has strengthened since August 2020, its personalised assistance and consulting services for customers and shareholders of member BCCs and its technological innovation support to the network of their 2,500 branches in Italy. BCC Servizi Assicurativi, founded with the mission of capitalising on the significant growth potential offered by the bancassurance sector, has progressively assumed the role of insurance competence centre for both the BCC Iccrea Group’s companies and the BCCs.
“I’m very pleased that we were able to close a commercial agreement for life insurance with BNP Paribas Cardif, an important partner both in Italy and in Europe”, commented Mauro Pastore, General Manager of the BCC Iccrea Group. “The partnership comes after a long internal evaluation that sought to identify a company that could ensure our 116 BCCs a complete, competitive product range and an operating model leveraging existing infrastructure throughout the country. It is with these resources that we want to gain new market share in the sector, through careful monitoring and a comprehensive offer that is able to respond to our customers’ wide-ranging and growing needs for protection”.
The effectiveness of the transaction is subject to the issuance of authorisations by the relevant authorities.
Pacific Life Updates Underwriting Guidelines to Expand Life Insurance Options to Individuals Living With HIV
Pacific Life has expanded its offering of life insurance coverage to eligible individuals living with human immunodeficiency virus (HIV).
“In keeping with our progressive approach to underwriting, we are leveraging the latest medical advancements in therapeutics for HIV in order to offer coverage to individuals living with this chronic condition,” said Dawn Behnke, executive vice president of the Life Insurance Division, Pacific Life. “This offering aligns with Pacific Life’s innovative and customer-centric approach in securing families’ financial futures and legacies.”
Currently, there are about 1.1 million people living with HIV in the United States and most are now living longer and healthier lives. 1,2
“Times are changing, and we’re taking the long-term, holistic view while supporting our customers’ needs,” said Susan Ghalili, senior vice president and chief underwriter of the Life Insurance Division, Pacific Life. “We are living in exciting times, where advancements in clinical medicine afford us the opportunity to expand our protection products to people living with many chronic conditions, including HIV.”
1 Centers for Disease Control and Prevention, Basic Statistics | HIV Basics | HIV/AIDS | CDC.2 Murez, Cara, “Americans Living with HIV Have Near-Normal Life Expectancy: Study,” U.S. News, July 7, 2021, Americans Living With HIV Have Near-Normal Life Expectancy: Study | Health News | US News.
NN Life & Pensions to acquire ABN AMRO Verzekeringen’s life insurance subsidiary
NN Group, ABN AMRO Bank and their joint venture ABN AMRO Verzekeringen (AAV) announced that they have reached an agreement to sell AAV’s life insurance subsidiary to Nationale-Nederlanden Levensverzekering Maatschappij N.V. (NN Life & Pensions).
AAV is a joint venture between NN Group (51%) and ABN AMRO Bank (49%) that provides insurance products and services to over one million retail and corporate customers. NN Group already consolidates the life insurance activities of AAV. ABN AMRO Bank and NN Group have agreed to extend their successful cooperation in AAV by 5 years until 2038, if certain customary performance criteria are met. Following the transaction, AAV will focus on its non-life insurance business and its insurance broker activities. NN Group and ABN AMRO Bank have agreed to make additional investments in the coming years to strengthen AAV’s digital capabilities and further grow its non-life portfolio.
The life insurance subsidiary of AAV, ABN AMRO Levensverzekering N.V. (AAL), will be integrated into NN Life & Pensions. The intended transaction will have no impact on the services and guarantees to customers. NN Life & Pensions and ABN AMRO Bank intend to continue the sale of term life products via the bank’s channels.
Leon van Riet, CEO Netherlands Life & Pensions and member of the Management Board of NN Group: ‘This transaction is in line with our strategy to achieve further efficiencies by leveraging our existing closed book capabilities. We are pleased to continue our successful collaboration with ABN AMRO Bank and look forward to further supporting AAV’s growth strategy in non-life insurance.’
NN Life & Pensions will acquire 100% of ABN AMRO Levensverzekering N.V. from AAV for a total amount of EUR 253 million. This will be financed from existing cash resources of NN Life & Pensions. Following the transaction, AAV intends to distribute the proceeds from the transaction, after deduction of costs related to the transaction, to its shareholders NN Group and ABN AMRO Bank.
The transaction is expected to have a limited negative impact on NN Group’s Solvency II ratio on closing, which is expected to change into a limited positive impact following the envisaged legal merger of AAL and NN Life & Pensions and the application of NN Group’s Partial Internal Model. On a consolidated basis, the acquisition is expected to result in a net cash outflow from NN Group of EUR 128 million for the indirect 49% stake in AAL and an increase of its dividend capacity of approximately EUR 15 million per annum.
The transaction is subject to regulatory approvals and is expected to close in the second half of 2022.
Guardian Angel partners with Covéa Insurance to offer a solution to the challenge of acquiring Life Insurance prospects
UK Tech start-up Guardian Angel that helps people plan for and manage death has partnered up with award-winning UK insurer, Covéa Insurance, to launch their new life insurance offering.
Guardian Angel’s product has a new way of engaging and attracting customers. Their Life Insurance product sits within the UK’s first holistic end of life planning tool, Bow. Bow is inspired by the success of credit score companies, such as Experian in its focus on educating and empowering new, curious audiences about the importance of planning ahead. It gives each user a personalised end of life preparedness score, based on their life situation along with tailored suggestions on how to improve that score (such as securing Life Insurance cover).
Speaking about their life insurance product launch, Guardian Angel’s Founder and CEO, Sam Grice said: “My Mum died in 2016 so I know how important it is to get these plans in place. And I also know the barriers – the most challenging of which is knowing what you need and where to start. We’ve addressed that question head on with this launch, by educating and empowering customers about the importance of Life Insurance, allowing us to reach people in a much more engaging way. I wish my family had had access to something like this before Mum died, it would have made the world of difference. As a team we are proud to be offering a more accessible and affordable planning tool to more people.”
Having received their score and suggested actions, the Guardian Angel online Life Insurance application has been designed to be accessible and straightforward. It can be completed in under 15 minutes, from home, without the need for any medical tests. It offers a more accessible range of cover from £5,000 to £500,000.
But what makes this product unique is that when customers purchase Guardian Angel Life Insurance they get access to their entire suite of products for free, from an online will to expert legal support with Lasting Power of Attorney or a social media plan. This makes it the UK’s first business to end the fragmentation of the end of life planning space by providing a one-stop-shop solution.
Guardian Angel launched their Life Insurance product in collaboration with insurance specialist Covéa. Sam Grice explained why Covéa was the go-to partner: “Covéa Insurance has a lot of experience working with intermediary partners and insurtechs, alongside a well-earned reputation for fantastic customer service. We knew they were a brand that would provide reassurance for our customers and that they have the scale and digital skills to support our delivery goals.”
Covéa Insurance is known for its intermediary distribution model, topping industry broker service surveys for both Personal Lines and Commercial Lines, and winning 2021 General Insurer of the Year at the British Insurance Awards.
Speaking about the partnership, James Gearey, Managing Director, Personal Lines & Protection at Covéa Insurance said: “Guardian Angel is tackling a sensitive but crucially important aspect of financial planning and making it easier and more accessible for people who may not be familiar with it. We were impressed by their ‘BOW’ planning tool which sets out what people need to do in a practical, no-nonsense way. It has the potential to reach a younger demographic who may not previously have considered life insurance, but who can benefit from it.”
Sven Lixenfeld to head Life Insurance and Investment at Retail Germany Division at Talanx Group
Dr Patrick Dahmen will leave the Group effective 31 August 2021 on the best of terms and by mutual agreement
Sven Lixenfeld will join the Board of Management of HDI Deutschland AG as at 1 September 2021, and will also become Chairman of the Board of Management of HDI Lebensversicherung AG
Focus on future growth in retirement provision
Sven Lixenfeld is to succeed Dr Patrick Dahmen as head of the Board-level Life Insurance and Investment Department at the Talanx Group’s Retail Germany Division effective 1 September 2021. Dr Dahmen will leave the Talanx Group on the best of terms and by mutual agreement effective 31 August 2021 to pursue new professional opportunities.
Sven Lixenfeld has many years of experience in the fields of personal and occupational retirement provision, life insurance-IT and bancassurance thanks to his work as a board member at SV SparkassenVersicherung and consultant at Boston Consulting Group. He worked for SV SparkassenVersicherung for ten years, first as a general manager and then, from 2008 onwards, as a board member with responsibility for life insurance and IT. There he was responsible for the company’s successful focus on capital-efficient products and increased growth on the market for personal and occupational retirement provision, and for migrating all legacy systems to the new target IT environment. In 2016 Lixenfeld, who has a degree in engineering management, returned to Boston Consulting Group as a partner and managing director. He will now become Chairman of the Board of Management of HDI Lebensversicherung AG and a member of the Board of Management of HDI Deutschland AG.
“We are delighted that Sven Lixenfeld will be joining us. With his wide-ranging expertise he can drive forward the development of our life insurance activities and is a perfect cultural fit for our team and the HDI Group. Among other things, he will focus on managing the low interest rate period and on stricter regulatory requirements”, said Torsten Leue, Chairman of Talanx AG’s Board of Management and Supervisory Board Chairman at HDI Deutschland AG. “Classic guarantee life insurance is rapidly becoming less important. Despite this, we see personal and occupational retirement provision as an enormously important market, and one in which we aim to continue growing. Sven Lixenfeld combines in-depth knowledge of state-of-the-art retirement provision with IT and bancassurance expertise. This mix will help us continue the success of the German HDI Group’s retirement provision operations going forward”, said Dr Christopher Lohmann, the member of Talanx AG’s Board of Management responsible for this area and Chairman of the Board of Management at HDI Deutschland AG.
“We would like to express our thanks and gratitude to Dr Patrick Dahmen. He played a major role in innovating the HDI Group’s retirement provision activities in recent years and in boosting solvency at its risk carriers. In addition, Dr Dahmen contributed substantially to the successful agreement of our sales partnership with Deutsche Bank AG. The Supervisory Board would like to wish him all the best for the future, both personally and professionally”, said Leue. Dahmen joined HDI Deutschland AG in 2019 as the Board of Management member for Life Insurance and Investment. Before that he had been a member of the Management Board of AXA Konzern AG since 2007, initially for Finance and as from 2012 for the Retirement Provision function. “My warmest thanks go to Patrick Dahmen for his excellent work and dedication in the last years, and I wish him every personal and professional success going forward”, said Lohmann. As always, the appointment is subject to approval by BaFin, the German supervisory authority.
Lemonade Chooses Bestow as Its Platform for Life Insurance
Bestow, the first full-stack life insurance company, today announces a partnership with Lemonade, which recently launched life insurance. Powered by Bestow’s Protect API, Lemonade customers can apply for instant, affordable life insurance in as little as five minutes online — all within Lemonade’s website and apps.
Customers are greeted by Lemonade’s AI chatbot Maya, who guides them through a conversational application. Through the Protect API, customers are underwritten in real-time and find out instantly if they’re approved. Bestow uses third-party data to determine eligibility and pricing in seconds, eliminating the need for a medical exam.
“Bestow has built life insurance infrastructure for the internet, partnering with world-class companies who provide access to vital financial products,” said Jonathan Abelmann, Co-founder and President of Bestow. “Lemonade is a visionary in using technology to transform insurance, and we couldn’t be more excited to partner with them on Lemonade Life, which is truly a one-of-a-kind experience.”
In 2020, Bestow entered into a definitive agreement to purchase a nationally licensed life insurer, grew its customer base by 400%, and raised more than $100 million in funding. The full-stack life insurance carrier is accelerating growth across new product lines to further support advisor sales, carrier partnerships, and industry-first distribution partnerships like Lemonade Life. Bestow partners benefit from various integration options that create on-brand and highly scalable life insurance offerings. Life insurance products on Bestow’s platform are competitively priced and 100% digital, bringing an unmatched offering to partners and their customers.
HSBC Insurance to acquire remaining 50 per cent stake in its life insurance joint venture in China
HSBC Insurance (Asia) Limited, an indirect wholly-owned subsidiary of HSBC Holdings plc (“HSBC”), is pleased to announce that it has entered into an agreement to acquire the remaining 50% equity interest in HSBC Life Insurance Company Limited (“HSBC Life China”), its life insurance joint venture in China, from The National Trust Limited (“NT”).
The transaction is in line with the removal of foreign ownership restrictions on foreign-funded life insurance companies in China, which became effective on 1 January 2020.
The transaction will be structured as a transfer of equity interest and is subject to regulatory approvals, including from the China Banking and Insurance Regulatory Commission.
Noel Quinn, HSBC’s Group Chief Executive, said: “Despite the current difficult environment engendered by the Covid-19 pandemic, we continue to take steps to implement our growth strategy. This transaction supports our ambition to accelerate growth within our Asian franchise, particularly in the dynamic and fast-growing Greater Bay Area, where we fully intend to expand in all lines of businesses. It also allows us to further extend our capabilities in wealth, another area of strategic focus for the Group.”
Peter Wong, HSBC’s Asia Pacific Chief Executive, commented: “As the leading international bank in China, HSBC is privileged to participate in the opening up of the insurance sector, a positive development which underlines China’s commitment to financial reform. This transaction allows us to increase our investment and deepen our presence in China, an important country within our well-regarded Asian franchise and a strategic market supporting our customers’ activity across our global footprint.”
Bryce Johns, Global Chief Executive of HSBC Life, added: “The increase of our stake in the joint venture demonstrates our strong commitment to continued investment in mainland China, on track to be the largest insurance market in the world. Full ownership of HSBC Life China, combined with the HSBC Group’s international strengths and robust digital and wealth management capabilities, will enable us to significantly extend our reach and amplify the scope of our life insurance offerings to meet the burgeoning protection, health and wealth needs of our customers in the Mainland.”
HSBC Life China was formed in 2009 as a 50:50 joint venture between HSBC and NT, and as of December 2019 had a registered capital of RMB1.025 billion. Headquartered in Shanghai, HSBC Life China is present in nine key Mainland cities covering Shanghai, Beijing, Tianjin, Hangzhou, Guangzhou, Foshan, Dongguan, Zhuhai and Shenzhen. HSBC Life China offers a comprehensive range of insurance solutions covering annuity, whole life, critical illness and unit-linked insurance products.