Saga Health Insurance Introductions
Saga offers five health insurance plans underwritten by AXA PPP, with each being unique to Saga. They are designed for customers aged 50 or over and called Super (which offers the highest cover, including full outpatient cover and a range of other benefits), Secure, Saver Plus, Saver and Support (the lowest cost plan as it excludes most outpatient except surgical outpatient treatment).
Optionally, customers can add extended cancer cover, health cash plan benefits and obtain cover for pre-existing hypertension. Premiums can be cut by agreeing to open referrals, choosing a four week wait option, or choosing one of five excess levels, or choosing to have a no claims discount.
To date, these plans have not been available through brokers, but Saga has now launched an introduction service, that rewards brokers for referring PMI clients to them.
The Saga Health Insurance Introductions process is simple, with brokers assigned a personal introducer code and having access to the Saga Health Insurance customer team through a direct broker referral process. Once referred, the Saga team contacts the customer and creates personalised quotes based on their individual requirements.
Brokers cannot actually sell the product, but instead receive up to 30% commission for all confirmed, converted sales. They can continue to benefit for a further two years too if the customer renews their policy. Initial commission varies from 20% for 1-20 sales, up to 30% for more than 40 sales or up to 35% if the broker takes no renewal commission. If the policy is cancelled within a specified time period, Saga can claim back any commission paid on a pro rata basis.
Comment: The PMI market has shrunk in recent years, the latest PMI exit being April UK, earlier this year. Recognising an opportunity, Saga is now incentivising brokers to refer clients to it, and paying attractive commissions (albeit volume related) if they do.
This risks losing the customer to Saga but, at present, many protection insurance intermediaries and IFAs are content not to get involved in PMI at all or else just refer clients to a trusted PMI specialist instead. Now they have the option to pass onto a brand well known to older clients.
Saga’s plans won’t be the right choice for every client and only apply to individuals 50 or over but, for brokers wanting to increase their earnings but not to get actively involved with PMI, this is another option for them to consider.
Plus points: A well-known and trusted brand to many older people; Attractive additional income potential for brokers; Hands off sales.
Not so plus points: Effectively means giving up the customer to Saga for PMI; Limited market; No long term earnings from renewal commission.
Website: http://www.saga.co.uk.
Rating (max 10): Innovation: 7. Overall: 7.5. Silver
Tags: PMI; Saga