This presentation is directed at professional financial advisers only and should not be distributed...

This presentation is directed at professional financial advisers only and should not be distributed to or relied upon by retail customers.

AXA Protection Account Business Protection

This presentation is written for you as a professional financial adviser. Please do not show this to your customers.

AXA Business ProtectionAn introduction to Business Protection



AXA Business ProtectionTopics to cover…

Part 1 – Business Protection

A background to Business Protection

Why sell Business Protection?

The benefits of Business Protection

Part 2 – Our Business Protection proposition

Why choose AXA for Business Protection

How do we fulfil your clients needs?

The tools, support and services that we offer



What is Business Protection?

It’s about protecting the business when things go wrong…

Key Person Insurance

Director/Shareholder Protection

Partnership Protection

Business Loan Protection

Sole Trader Protection



What is Business Protection?The covers available…

Key person cover

The company, Key Person or

Partnership

Loss of profits and costs of replacing a

key person

against

protects

Shareholder or partner protection

Remaining shareholders/partners

Shareholder/partner’s family

Provide cash to buy shares

for

to

Business loan cover

Effects of loss of a key

person on its loans

protects

The company, Key Person or

Partnership

against



What is Business Protection?Why is it important?

It is important for your customer because it can;

protect business debt;

keep their business trading;

help pay new staff to take over from key individuals; and

enable the purchase of shares from a business shareholder; • if they become critically ill; or • from their estate if they die



What is Business Protection?Why do people go into business?

Do it to make money

Build their business as part of a dream

Expect to pass on the rewards to their family and heirs

Want to see the business survive and flourish

Are protective of their business

Enjoy the independence and take pride in its success

Want to be own boss and be in control

If a key person becomes seriously illor dies…



What is Business Protection?In summary…

Business Protection is about…



Why sell Business Protection?The market…

Business Protection is a largely untapped market…

4.7 million businesses in the UK, which equates to approx: 1,200,000 plc 507,000 partnerships 3,000,000 sole traders

Source: BERR Press Release 2008

With most SMEs having little or no Business Protection cover, the scope and market potential is substantial



Why sell Business Protection?The market…

70% of businesses do not have

business protection Source: Swiss Re Insurance Report 2005

In 2005, Swiss Re’s Insurance report discovered:

The average sum assured for

Business Protection is £250,000 Source: Swiss Re Insurance Report 2005

Only 5 – 10% of companies have

Key Person cover Source: Swiss Re Insurance Report 2005



Why sell Business Protection?The opportunity…

It is also worth noting that

Business Protection discussions can lead to further opportunities

There is a £500 billion Business Protection Gap

Source: Swiss Re Insurance Report 2007

A subsequent report in 2007 found:



Why sell Business Protection?The opportunity…

Potential can more clearly highlighted as follows:

You will already have some possible candidates in your existing client base who are business owners, partners, sole traders or even

a company director

2/3rds of 1.25 million SMEs each requiring £300,000

of cover

2/3rd x 1.25m x £300,000

= £250 billion+ potential



Why sell Business Protection?What’s in it for you?

More specifically, Business Protection equates to an increase in value per case:

Business Protection Our Large Case Team’s average

case size = £2,359 NBI

Business Protection

Average Case = £1590 NBI

Personal Protection

Average Case = £634 NBI

That’s nearly 4x greater than Large Case Personal Protection



Why sell Business Protection?What’s in it for you?

Business Protection also equates to increased commission per case. Ltd Company valued at £1m:

20 year term, Commission

£1,900+Male 33 NB / NS / S.A £300,000 Life/CI - £96.58 PM


£2,100+Female 37 NB / NS / S.A £300,000 Life/CI - £108.11 PM


£3,900+Male 40 NB / NS / S.A £400,000 Life/CI - £198.96 PM

One corporate case has generated £7,900+ commission so far



Why sell Business Protection?

There have been over 200,000 business

closures in 2008 so far Source: Barclays Newsroom, 2008 half

year start ups and closure report

1.7 million working days were lost due

to sickness absence in a 3 month period

during 2004 Source: National Statistics Feature – Sickness

absence from work in the UK, 2004

What’s in it for your clients?

Individuals have an approximate 40% chance of serious

illness before age 60 Source:

www.statistics.gov.uk, 2001 census

Individuals have a greater than 1 in 8

chance of death before age 65

Source: www.statistics.gov.uk, 2004-2008 interim life tables

Crown copyright material is reproduced with the permission of the Controller of HMRC. www.statistics.gov.uk



AXA Business Protection

Key Person

The impact from the loss of a key person:

Loss of future profits

Unable to repay commercial borrowing

Unable to repay capital/loan accounts

Restrictions on future credit

Loss of specialist skills

Cost of finding/training replacement

Competitors given time to “muscle in”

How do we fulfil business needs?




Business Loan Protection

Business protection required to support business overdrafts, mortgages, or corporate loans

Business Protection required to support further loans for expansion or special projects

Required for partners who are wholly, as well as personally, responsible for debt settlement.





Partnership/Shareholder ProtectionProtection need:

Required to prevent shares passing to other family members who have no experience of the businessTo protect surviving shareholders from a family who may sell to third party that is unacceptable to surviving ownersRequired to prevent a business having to be liquidatedRequired to mitigate IHT when shares are purchased from the deceased’s estateRequired to ensure that beneficiaries of deceased business partner receives the value of the partnership share





Executive Income Protection

Provides additional security and benefit for employers

Provides a more comprehensive cover than individual income protection

Covers employers pension and NI contributions




AXA Business ProtectionWhy choose AXA?

A Strong Company:We are ranked the 15th largest company in the world in terms of revenue.*The Fortune Global 500 index ranks us as the second largest company in the world in terms of revenue.*

Quality Covers:Our product suite includes covers that have received a 5 Star rating for the quality of cover by Defaqto, a leading independent financial research company.

Our previous performance is not a guide to how we will perform in the future* Source: Fortune Global 500 July 2008 www.fortune.com



AXA Business ProtectionWhy choose AXA?

A smart underwriting philosophy.

Smart on claims.

A smart large case team.

Straightforward sales support.

Straightforward access to a real underwriter.

Time saving, straightforward Tele-underwriting.



AXA Business ProtectionUnderwriting options…

AURAIntelligent

Underwriting Platform

FullPaper

Application

Full Electronic

Application

Tele-UW Paper

Application

Tele-UW Electronic

Application

89% of customers were completely satisfied with the

service

78% would actively recommend the

service to friends and colleagues.

Stats show that full Tele-underwriting

reduces non-disclosure to 1.23%



AXA Business ProtectionUnderwriting limits…

Financial Limits

• Accounts not required for less than £2m Life Cover

• Independent 3rd party on financial questionnaires not required

• AXA can consider cases over £1m CIC

Medical Limits

• Under 40 yrs no medical evidence if sum assured is below £500k for life cover

• Under 50 yrs no medical evidence if sum assured is below £250k for critical illness

Free Cover

• Full cover excluding pre-existing conditions

• Pays out for illness not just accidental death

• No money down

• Normally pays an amount equal to cover applied for subject to maximum amounts




As Business Protection is invariably for bigger sums assured, we have a large case team, dedicated to help ensure that we process your applications as smoothly and as efficiently as possible.

Large Case Team (LCT)

AXA ‘large case’ team as a pre and post sale contact for all Business Protection Applications

Business Protection experienced underwriters

Provides pre-application support for large cases

Underwriting support…



AXA Business ProtectionTraining and support…

We recognise that Business Protection can be complex and time consuming for business professionals. We have support material and training options to help you advise your clients on the protection needs of their businesses.

Our business protection training suite includes:

Technical and systems training on business protection for advisers

Training for Administrators on the market and AXA’s systems and processes

Group training sessions held for staff



AXA Business ProtectionPoint of sale…

You will also have access to our Point of Sale system that

will support you when writing

Business Protection. Tools at your

disposal include:




Business Protection Illustrations – both on and offline processing

Business Protection Applications – both on and offline processing

Point of sale…



AXA Business ProtectionPoint of sale…

A ‘Ski downhill’ concept that allows you to tailor covers for Business Protection

Industry portal visibility and availability




Full suite of trusts available - hard & soft copy

Extranet Trust Selector – simple trust guide supporting advisers for Shareholder and Partnership Protection

Point of sale…




Product & Price:

Access to the full Business Protection product range

Quality Covers

Depth of Product Range

Menu Account Discount

Special quotes facility for large cases

Guaranteed and reviewable payments

Flexible protection solutions…




Underwriting Options:

Full Paper Application

Full Electronic Application

Tele-UW Paper Application

Tele-UW Electronic Application

All feed into AURA Intelligent Underwriting Platform

‘Large case’ business receives tailored service.





Pre-Application:

Sales aids

Quality Business Protection Product Literature.

Clear Trust Forms and Trust Guides

Tools in POS

Confidence that TCF principles are applied





Application:

Pre-application Underwriting enquiries

Simple Application process

Different Applications options


This presentation is directed at professional financial advisers only and should not be distributed...

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