October PIBA and Zurich. Stronger together

Transcription

1 October 2015 PIBA and Zurich Stronger together

2 Dear PIBA Member, Looking back at the last 20 years of PIBA, the launch of the PIBA OnLine scheme in June 2002 stands out as one of our key achievements. Many of you will remember that the IIF Maximum Commissions Agreement was abolished in 1999 and just two years later we had tiered commission rates (90/100/110) depending on volume. Left unchecked or to develop even further, scaled margins could have posed a competitive threat to SME Financial Brokers. Online technology and the online submission of proposals was starting to emerge at this point. The question we asked was why couldn t technology make hundreds of brokers look and act like one big broker to an insurer (by forcing compliance with standard operating procedures, etc.) The savings and cost efficiencies could be used to reward the Financial Brokers who did the extra work of submitting the business online and complied with measures to reduce costs. In a world of 90/100/110, PIBA OnLine was launched at 120% with no thresholds. Immediately the smallest broker was equal to the biggest and there was even a step up in commission for the biggest broker. Over the last decade or so, we have seen a levelling of the playing field across the life and pensions landscape. Long before the 2012 Consumer Protection Code put pressure on the remaining over-rides and threshold-based commissions, the market had moved decisively towards a level playing field and we feel PIBA OnLine was a major factor in this. This activity is sometimes referred to as networking and over the years, some people have questioned why a representative body would do such commercial activity. For me, there is no point in working on legislation and compliance, getting proper agency agreements, creating positive PR for Financial Brokers and then leaving SME Brokers fend for themselves against better resourced, larger firms, with higher margins. We see no reason why SME Financial Brokers can t get a fair deal and this philosophy informs our approach to this scheme as with all other things we do. We are delighted to see the continued development of the scheme in 2015 and beyond. Diarmuid Kelly CEO, PIBA

3 Dear PIBA Member, It doesn t feel like 13 years ago when we introduced the PIBA OnLine scheme. While the scheme has evolved over the years, it still has at its core a desire to ensure that the bargaining power of the smaller independent Financial Broker is valued and appreciated. During the intervening years, Zurich has seen its market share double from 10% to an all-time high of 20% at the end of 2014 an increase that is a result of the support we receive from you. We recognise that our success is fully dependent on a strong Financial Broker channel in Ireland and that s why we ll continue to support PIBA members. PIBA OnLine today We work closely with Diarmuid and the PIBA Executive team to identify opportunities that are right for you from attractive product terms such as enhanced commission options on our protection range, additional allocations on pension, savings and investment products; through to initiatives to help you grow your business. This year is no different at the Financial Broker Conference in Croke Park we launched initiatives to help you grow your protection business and feedback continues to be very positive. Growing Financial Broker business One of Zurich s key objectives is to grow the Financial Broker share of the overall market. I believe that the more Irish people that meet with a Financial Broker to plan their future, the better off they will be. That s why a tenet of our advertising is to create need awareness and to drive people to the solution a meeting with an expert you. I am also delighted to continue supporting the Financial Broker project professionalising the image of the independent advice channel is essential and this project is a great way of doing that. Thank you for all the support you ve shown us to date. Myself and the team at Zurich look forward to working even closer for the mutual benefit of our customers. Brendan Johnson Head of Financial Broker Distribution

4 A team of people on hand to help you At Zurich we have a team of people who want to help you drive your business. From our product and investment experts through to the people that will administer your business, we want to work with you. Kristen Foran - National Sales Director Kristen works with your Broker Consultant to ensure that every opportunity is maximised. She brings a wealth of sales experience to the role and is focused on helping grow PIBA members share of the Life, Pensions and Investment market. Phone: kristen.foran@zurich.com Our product experts are on hand to lend support Niall Concannon Business Development Director, Protection Phone: niall.concannon@zurich.com Niall Fitzgerald Business Development Director, Pensions Phone: niall.fitzgerald@zurich.com David Walls Head of Retail Investment Sales Phone: david.walls@zurich.com Claims, Underwriting and Technical Support we have it covered Paul Murphy Head of Claims Phone: paul.murphy@zurich.com Brian Allen Head of Underwriting Phone: brian.allen@zurich.com Mike Ainsworth Head of Technical Services Phone: mike.ainsworth@zurich.com

5 Anne Walsh, Broker Consultant your gateway to Zurich Anne is your primary connection with Zurich. She is your representative but she is also our eyes and ears the feedback that you give to her helps us to shape how we interact with you. Anne is just one person but for Zurich to be truly effective in dealing with you, we want you to know more people within our business. That s why we encourage our Sales Support and Customer Services people to get out and meet with Financial Brokers. We hope that you ve had the chance to meet some of our team, whether face-toface in your office or at one of the many seminars we ve ran. If not, just speak to Anne and she ll arrange it for you. Contact: Phone: anne.walsh@zurich.com Anne Walsh Broker Consultant Service Team: / Fax serviceteam@zurich.com Risk New Business: Fax newbusinessrisk@zurich.com Technical Underwriting: underwritingsupport@zurich.ie Risk Claims: claimsadmit@zurich.com

6 Protection the bedrock of a financial plan While we all know that protection is essential to many Financial Brokers business models, it should also be the bedrock of a customer s financial plan. That s why we place such importance on the protection element of the PIBA OnLine scheme. In Ireland, there is a growing protection gap customers simply do not have enough life or serious illness cover in place to protect themselves in times of need. At Zurich, we are committed to working with PIBA members to help safeguard the financial future of your customers by providing you with compelling reasons to recommend good quality, competitively priced protection solutions. Niall Concannon Business Development Director, Protection Why choose Zurich for Protection? Strong claims ethos we pay out on 95% of claims so peace of mind for customers Competitive prices as voted in the 2014 PIBA survey! The strongest cancer, heart attack and stroke definitions available Free waiver of premium on all mortgage cover Cancer Cover contract for those that can t afford full serious illness Anytime rolling conversion option Easy to use online system. PIBA OnLine Protection options to help you grow your business Commission Option Year 1 Max (initial Commission) Year 2 Year 3 Year 4 Year 5 Year 6 Year 7+ Earnings Period Notes: To avail of these structures for Guaranteed Term Protection, Guaranteed Mortgage Protection or Pension Guaranteed Term Protection proposals, all you need to do is: Submit the business online; select the PIBO (i.e. Printing In Broker s Office) option; and choose the commission option you want to have applied. You will have the opportunity to choose between the 140 Structure, the 100 /12 ( *9) Structure, 160 Structure, the 180 (100, 40, 40) Structure, the 180 ( *5) Structure or the Conventional Structure. For Whole of Life proposals, if you wish to avail of either of the 180% options please write this in the special instructions field on the paper application form. Otherwise the case will be issued on 90%/100% (10%*term) structure. Please note the 140%, 160%, 208% or the Conventional structures are not available for Whole of Life proposals. New in % 160% 180% (bullets) 180% (spread) 140% (14%*term) 160% (16%*term) 100% (10%*term) 90% (10%*term) 208% 100% (10%*term) Conventional 125% 3% 3% 3% 3% 3% 3% 0% 0% 0% 0% 3% 3% 100% Year 1, 40% Year 2 80% Year 1, 20% each Year (2-5) 0% 40% 0% 40% 3% 3% 12 Months 18% 18% 18% 18% 18% 3% 12 Months 12% 12% 12% 12% 12% 12% (3% Yr 11+) 12 Months 100% (10%*term) 3% 3% 3% 3% 3% 3% 12 Months The Conventional 125% option is made up of 100% (10%*term) % (online) + 7.5% (PIBO) + 5% (reflexive).

7 Claims we re there when it counts At Zurich, we are very proud of our track record in paying claims to customers. However research from the UK suggests that customers think life companies decline far more claims than they pay.* This concerns me because the foundation of protection is that we pay claims and this is not being understood by our customers. Is it because the focus is too much on price, and claims are secondary? Paying claims is the most important element of protection. At Zurich, we pay over 95% of all claims and this is something we need to ensure that all our customers are aware of. Paul Murphy Head of Claims In 2014, we paid 33 million in Life Cover with an average payout of 87,000 We have a dedicated, single point of contact for all claims With our serious illness definitions, we ll pay more claims than our nearest competitors *Source: Protection Review, Public perception of Life, Critical Illness and Income Protection claims.

8 Pensions planning for your customers retirement For many people, a pension will be the most valuable asset they ll ever accrue. What we need to do is to make sure that people understand and value that. For too long the pensions industry has focused on the technical aspects of retirement planning; tax relief, investment funds and performance, different pension types and their structures. Of course these are all important but to our customers (and potential customers), I d argue that they aren t high on their list of priorities. At Zurich, we are getting back to the basics of retirement planning. Save now, spend later is a pretty good explanation of what pensions are all about. If we can work closely with PIBA members to help spread the message, then I think we ll all have customers thanking us when they come to retire. Niall Fitzgerald Business Development Director, Pensions Why choose Zurich for Pensions? Market leading pension product proposition with flexible pricing structures to meet the needs of all customers Award winning investment performance and wide choice of investment funds Innovative and thought provoking advertising campaigns that drive pension customers to you Creative online planning tools for you to use with your customers Unique customer dashboard and report generator that makes it simple for you to keep up-to-date. PIBA OnLine Pension options (available to 31/12/2015 only) SP Pensions and Personal Retirement Bonds Initial Commission Net Allocation AMC 2% & 0.25% trailer 100% 0.75% p.a. 2% & 0.5% trailer 100% 1% p.a. Optional Trailer Trailer automatically included Trailer automatically included Encashment Charge 3% - 1% 3% - 1% The pension options above have encashment charges 3% - 1% over years 1-3. The minimum premium is 50,000 and the maximum age at entry is 55 next birthday.

9 Pensions require advice... While it s important for us to simplify customer messaging around pensions and retirement planning, it s difficult to get away from the fact that pensions can be complicated - even for the experts! Heavily regulated and driven by legislation, pensions are a great way for Financial Brokers to demonstrate their expertise. Whether it s advising customers on simple matters such as the right type of pension, to much more in-depth conversations on tax efficiency, maximum contributions, pension adjustment orders, changes brought about by new legislation and so on - I believe that pensions are the reason why people need advice. Going it alone is not really an option. The Technical Services team at Zurich is here to support you with all your technical queries. Justin, David, Sinead, Catherine and myself speak to PIBA members every single day, guiding them through the legislative maze that dominates our industry. We bring clarity to complex topics, to help ensure the advice that you provide is sound and easily understood. If you ever have a query, don t hesitate to give us a call or drop us an . Technical Services: Phone: techsupport@zurich.com Mike Ainsworth Head of Technical Services

10 Investments, Savings and Funds consistency matters! At Zurich, we put investments and funds at the very heart of our proposition. We are recognised for providing strong, consistent, long-term investment performance - a recognition we greatly appreciate. For your customers, whether they are investing for their retirement or simply saving for a rainy day - their success will be largely dependent on the investment choices that you recommend. While providing simple investment solutions is important, a key element of the Zurich proposition is providing extensive investment choice for Financial Brokers and customers. While our in-house team of investment managers are core to our proposition, we also provide you access to excellent funds from some of the world s largest fund managers such as BlackRock, JP Morgan and Invesco. By choosing to invest with Zurich, whether through our Pathway Multi-Asset Funds or through one of our external partners, I think you are giving your clients the very best start on the path to good returns. David Walls Head of Retail Investment Sales Why choose Zurich for Investments? Long-term consistently strong investment performance from our award winning investment team Active fund management and asset allocation decisions at the heart of our proposition Market leading risk profiler and portfolio builder with a wide range of investment solutions for all risk groups Additional access to a carefully chosen range of funds from a selection of the largest and most renowned fund management groups in the world Creative and flexible investment product proposition that matches the needs of customers with the requirements of the financial broker. PIBA OnLine Investment options (available to 31/12/2015 only) The PIBA Investment Bond Initial Commission Net Allocation AMC Optional Trailer Encashment Charge 1 5% 100% 1.25% p.a. 0.25% 5% - 1% 2 3% 100% 0.75% p.a. 0.25% or 0.5% 5% - 1% Investment bond option 1 has encashment charges 5% - 1% over years 1-5. The minimum premium is 5,000 with a maximum of 150,000. The maximum age at entry is 75 next birthday. Investment bond option 2 has encashment charges 5% - 1% over years 1-5. The minimum premium is 50,000. The maximum age at entry is 75 next birthday.

11 Consistency in approach... consistency in performance When it comes to investment management, the in-house Zurich investment team is consistent. We ve been sucessfully following the same dynamic investment process for the last 25 years - we actively manage stock selection and asset allocation with the aim of outperforming our benchmarks by a small amount every year. So no matter who is making the day-to-day decisions on a particular fund, they are following a path that has been laid down by people before them. And it s this consistency of approach that has paid dividends for Zurich customers. So if customers are invested in any of our funds, whether it s SuperCAPP or one of our Managed or Pathway Funds, they are benefitting from a lifetime of investment expertise. Richard Temperley Head of Investment Development Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Mike Ainsworth Head of Technical Services

12 Service dedicated and committed to PIBA At Zurich, we want to provide a first class service to you and your customers it s the cornerstone of our business strategy. PIBA members have traditionally never been shy at telling us where we needed to improve and over the last 18 months we ve been acting on your feedback. As you are probably aware, with Our Customer Comes First initiative we ve been experimenting with different ways of working, e.g. how we set up our back office teams, ensuring you are more closely connected to people who can deal with your request, focusing on increasing our one-stop service etc. I m glad to say that these initiatives are working positively and we are certainly heading in the right direction. But there is still much work to do. We will continue to focus on our service proposition, to make sure that it supports your business objectives and helps you spend more time planning with your customers. Niamh Bernard Operations Director Online leading the way in supporting you The Client Dashboard a single view of your customer Zurich s unique Client Dashboard gives you a single overview of your client s total holding of policies with Zurich Life, extended across retirement, investment, savings and protection products. To access the Client Dashboard, log-on to the Broker Centre, look up the client s list of policies as normal and click on the Client Dashboard button. The Client Dashboard provides you with: An aggregated view of your client s total holding - regardless of the number of individual policies your client holds Current pension, investment and savings values (before and after tax) Premiums paid A snapshot of your client s protection benefits.

13 Report Generator - creating customer reports has never been easier Keeping your clients informed on how their policies are performing is a key component of your role. To help you with this, you can now easily generate and save customised client reports direct from the Client Dashboard. A tailored cover letter can be personalised with your logo and company details. This makes it easier than ever to remain in contact with your customers. The Password Free Broker Centre In addition to the secure, password protected PIBA OnLine facility, there is also the Password Free Broker This is the result of feedback from Financial Brokers requesting a facility whereby information accessed regularly is made easily available to them. On the Password Free Broker Centre you can access: Our product literature and application forms Enhanced Fund Centre The Prisma Risk Profiler and Portfolio Builder The latest news from Zurich The most commonly requested forms including Underwriting, Medical and Claim forms Our popular calculators and financial planning tools.

14 Zurich ongoing technology support for PIBA PIBA as an organisation has benefited by receiving technology support payments that have helped PIBA to facilitate the roll out and promotion of technology to its members. To help facilitate these ongoing technology enhancements, Zurich has agreed to continue to provide technology support in this way to PIBA. The support reflects the use of technology by you, and is calculated based on the usage of PIBA OnLine. The terms apply from 1st January 2015 to 31st December 2015 and are as follows: For new regular premium business: Protection 2%, Standard PRSAs 0.25%; For new monthly paid regular premium business: Pension 0.25%; For new single premium business: SP Pensions and ARFs 0.1%, Investment 0.05%, Standard PRSAs 0.05%.

15

16 PIBA Network Services Ltd. Unit 14B, Cashel Business Centre, Cashel Road, Crumlin, Dublin 12. Telephone: Fax: PIBA Network Services Ltd t/a PIBA Mortgage Services and PIBASure is regulated by the Central Bank of Ireland. Intended for distribution to PIBA Members within the Republic of Ireland. Print Ref: ZURL CP 47 (AW) 1015 Zurich Life Assurance plc Zurich House, Frascati Road, Blackrock, Co. Dublin, Ireland. Telephone: Fax: Website: Zurich Life Assurance plc is regulated by the Central Bank of Ireland.