Are PruProtect Missing Something?

July 29th, 2010

PruProtect are certainly trying to be different in their fresh approach to protection in the UK, however are they missing something.

PruProtect is the new name for the good old Pru. Let's be honest, the Prudential needed a new name to shake off that old school door knocking life insurance agent image that it had. Prudential are now positioned at the cutting edge of the protection market – they have created PruProtect who have brought in new ideas to the UK that are innovative and exciting, however are they working or are PruProtect selling themselves short?

James Markwick, Managing Director at Lifebroker said "my opinion is that PruProtect are competitive on price however they are not in the top 3 when Lifebroker clients get quotes."

PruProtect is a joint venture between Prudential and Discovery (a major player in the south African life insurance market). Prudential have moved their back office functionality to SA, and it works really well, however this has not reduced their premiums enough. They have some great features; the major one being their 'Vitality Points' programme which rewards you for looking after your health. the Programme will reward you for doing a few simple things, like eating well and taking a bit more exercise. For certain healthy activities you take part in, PruProtect will give you Vitality points. The more points you earn, the higher your 'Vitality status' and the greater your rewards (reduced premiums later in life).

Lifebroker believes that PruProtect relies heavily on face-to-face Financial Advisers recommending their product, or web based comparison sites displaying their product at the top of a list; the latter is not possible if the premium is not the most competetive. When most UK shoppers are wading through price comparison websites do they have time or the inclination to stop and read about Vitality Points? Most consumers do not even look to see if the premiums can rise so the chances of them digging through the finer details of a policy are very unlikely. All online consumers want is the best value life insurance premiums - the cheapest.

James Markwick said “We strongly believe that PruProtect need to address whether or not the Vitality Points Programme is good for all products. We suggest having a life insurance policy aimed at the ever growing online market. This could be a product that is more basic than the Essentials product that does not participate in the vitality points programme. This would reduce the underlying premium and win more business for PruProtect from online sources”.

Lifebroker hopes that PruProtect addresses and launches a new product that is aimed at the online consumer.