There’s a revolution coming to the market

I know that’s quite a bold headline, but I’m standing behind it with conviction.

Just Group has some pretty strong credentials in disrupting markets to deliver better value to customers. Over a decade ago we transformed how pension annuities (guaranteed income for life solutions, GIfL) were priced when we introduced medical underwriting. By asking customers about their medical conditions and lifestyle factors we were able to provide a personalised offer. Typically around six-in-ten customers achieved a better deal of around 20% higher retirement income compared to a GIfL that was not medically underwritten.

Professional financial advisers were the first to adopt this transformation, they led the revolution, whilst many other companies across the industry were slow to adapt. Over a decade the financial watchdog, first the Financial Services authority and then the Financial Conduct Authority (FCA), chipped away at the status quo and introduced remediation measures to force firms to do the right thing. Today the majority of customers who would benefit from a medically underwritten GIfL get access to one.

So, what’s this new revolution all about?

Today, we have announced we are introducing medical underwriting across our Just For You lifetime mortgage range. We are using our deep medical intellectual property, including over 2 million person years of data, to equip professional financial advisers to lead this revolution and deliver a unique personalised solution to their clients.

What’s the benefit to customers?

By answering some straightforward questions we estimate six-in-ten people could get a better deal. And by better deal I mean (i) a lower interest rate (compared to a non-medically underwritten offer); and (ii) access to a higher borrowing amount for those that need it. And we are not talking about a few pennies and pounds, this could deliver double digit thousands of pounds to many customers.

When is the revolution coming?

It’s already here. Professional financial advisers can access quotes via Just’s digital portal today.?The other industry sourcing systems start coming on line this week.

The days of non-medical underwritten lifetime mortgages are numbered…. tick tock

As we have witnessed in other retail financial services markets, you can quickly become a dinosaur if you don’t adapt with agility. This is crucially important for professional financial advisers. If advisers don’t ask their clients about their medical conditions and lifestyle factors they will expose themselves to advice risks. How can advisers be sure they have secured the best outcome for their client if they haven’t asked these questions – well, they can’t. The FCA has made it pretty clear delivering personalised advice (not the off-the-shelf, tick box variety) is an imperative. Now advisers can demonstrate how they’re getting closer to their customers and offering true personalisation.

Advisers are well equipped to lead the revolution

Health is at the heart of modern financial planning.?Professional financial advisers are experienced at talking to their clients about health, they use medical underwriting for GIfL and protection business so they’re used to having these conversations. And, advisers now have access to modern digital technology that makes obtaining instant medically underwritten quotes viable. So we are confident advisers will quickly lead this revolution as they have so many others. Six-in-ten clients could get a better deal. Let’s make sure these clients don’t miss out.

So we are looking forward to working alongside advisers to help them, to help their clients.?In doing so we fulfil our purpose – we help people achieve a better later life.

Find out more at justadviser.com ?