Club Life pulls in forensic accountant

The new product, to be launched in May, protects the financial position of a business against the impact of a key person becoming disabled or dying.

Targeted at the self-employed, managers within small companies and partnerships, it’s designed to provide clients and their advisers with greater certainty over what is covered, Club Life chief executive Naomi Ballantyne says.

"It will make it much clear what is covered, what will be paid and when it will be paid," Ballantyne says.

The product, which replaces existing income protection or key-person life insurance, was designed in response to feedback from advisers, she says.

"The feedback we’ve had is that existing products don’t fully address the needs of many clients, leaving advisers feeling vulnerable. They’re left having to tell clients ‘this is what I think will happen, but I’m not sure cause it depends on what the claims manager decides at the time’".

To improve certainty Club Life will use a forensic accountant as a financial underwriter for the business.

"Most underwriters are risk underwriters and are not very experienced at accessing financial risk for a business. Often they need to rely heavily on reinsurers to make the calls, and that makes if difficult for them to go back to the adviser and client and explain what is happening.

"We are taking the step of making sure we have that resource within our organisation, so we can make sensible judgements and give people clear advice about what does and doesn’t constitute loss of earnings."

Commenting is closed