The life insurance market has not experienced the same level of innovation as other, similar insurance markets, according to Reassured CEO, Mark Townsend.
Townsend, who has previous experience in the general insurance market including car and home, said the life insurance market has fallen behind in terms of development.
While Townsend acknowledged that all markets could be improved, he found continuity was one area where life insurance in particular was struggling, stating: “The life insurance market has changed less than other similar markets”.
He explained the products in the market are pretty similar to what they were 15 years ago.
However, he did acknowledge there were elements and good benefits that are becoming increasingly part of products which was a positive, particularly given some of the challenges given the provision of public services.
“There are changes and there are innovations but, fundamentally, the delivery model predominantly through IFAs, banks, and advisers is pretty consistent,” he explained.
He added that the life insurance market has not been through the same kind of disruption as car and home have over the past 10 and 15 years, such as the introduction of price comparison sites which played a large role in changing other insurance markets.
He explained the high level of competition cultivated by this kind of disruption led to innovation which is currently absent from the life insurance market.
“There are models, whether it’s DeadHappy or whether it’s Anorak, that have come very close to disrupting the market and making things better for a broader range of customers but haven’t quite managed it,” Townsend added.
Learning the ropes
Townsend has been in his current role since May and has been with the Reassured business since January.
Before joining the business, Townsend had been involved in the general insurance market and so acknowledged that it took a bit of time to understand the new market.
“Because it is a new business and a new market for me it was four months of listening to people and meeting people to understand what is different about the protection market and what’s special about Reassured.
“That was a really good and helpful four months.”
He added this period was particularly helpful for disuageing him of the preconceptions that he had held about the protection market before joining it.
“I confidently strode into the protection market and then spent four months realising that, instead of what I expected, it’s actually much more nuanced and much more interesting.
“It’s going to be a terrific challenge but with the Reassured team behind me it’s one I think we are up to.”
tom.dunstan@ft.com
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