1 April 2003: Health insurance and related products have the strongest potential growth for financial service distribution partnerships, according to research by Watson Wyatt in their 2003 affinity report.
But it says the potential will only be realised if methods are found to make distribution through the workplace a viable option.
This is the firm’s fourth annual survey of financial services distribution partnerships, the arrangements made between companies providing and those distributing financial services products in the UK.
Watson Wyatt senior consultant Frank Fletcher said health insurance products are akin to employee benefits.
“Their importance is being thrown into sharp relief by the growing interest in company pensions and in particular by the relative decline of defined benefit pension arrangements that often include provision for life cover and income in times of ill health and disability,” he said.
“There is strong potential for increased sales of health related financial products such as income replacement insurance, critical illness, private medical insurance and health cash plans though product providers partnering with employers and workplace related organisations such as trade unions.”