Being ever more inclusive with our products.

We continue to provide our products through all distribution channels (direct, intermediated, multi tied and tied) to provide as much market coverage as possible.

However it is increasingly important to us that our products are made more accessible to socially-excluded or fringe markets. This can involve changing the way we distribute, underwrite or price our products. We’ve carried out research into how our products reflect the financial needs of the UK population. This shows our products are under-represented in certain consumer groups.

As a result of our work we have seen an increase of 1.9% since 2010 in the proportion of Legal & General’s business that is with customers in traditionally harder-to-reach groups, representing an improvement in inclusivity among younger customers, and older customers on lower incomes. The table below illustrates our progress.

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Percentage of UK population

Percentage of L&G’s business

Green Shoots: young, students/first jobs and newcomers to financial services
(Average savings and investments of £4,000)

25% (2010)
24.9% (2011)

Change:  Minimal

14% (2010)
15.9% (2011)

Change: +12% More customers

Grey Days: low earners and only likely to use very basic banking and insurance services
(Average savings and investments = £7,300)

Pink Fizz: mainly young singles, busy lives, private renting or mortgaged and credit users
(Average savings and investments = £9,300)

Some of the key areas of progress in which we’ve become more inclusive include

  • Postcode Annuities – We offer Postcode Annuities that enable customers living in areas with higher mortality rates to benefit from higher pension payments. See our annuities
  • Over 50s Funeral Products – We offer an Over 50s plan that provides funeral expenses. It isn’t based on the health of the customer, and is therefore an affordable product. This product has been reviewed in line with our Product Lifecycle See our Over 50s cover
  • Home insurance – We’ve introduced a more flexible home insurance product to make home insurance more accessible, particularly to low-income groups. Find out more about our Home Insurance
  • Heart Attack Definitions – Following work in 2010 with the British Heart Foundation who challenged us on our heart attack definitions and inclusion of customers who had previously suffered heart attacks, we’re offering new terms for Group Income Protection when a person has previously suffered a cardiac event. See how we’ve expanded Critical Illness Cover
  • OLP Connect – In 2011 we continued to innovate to make life insurance cover for customers quicker and easier to get. Our OLP connect system enabled financial advisors to get more upfront underwriting decisions. We increased the number of life assurance applications with online underwriting from 65% to 73% in 2011. See more on OLP Connect
  • Social Housing – Following previous challenges from Shelter on our approach to helping social housing providers insure their tenants’ property and contents, we’re working on a proposal to provide affordable insurance to this sector. Read more in Housing
  • Automatic Enrolment – We support the Government's plans to automatically enroll employees into workplace pensions, starting from October 2012. This will broaden the scope of pension saving in the UK. Read more in Pensioner Poverty
  • Micro Finance – Analysts often ask us why we don’t have a contribution to make around micro finance and overseas development. As a UK-orientated business there is no commercial reason for doing so. However, diversifying our supplier base and supporting small and medium-sized businesses are things we can act on. We are actively working with Social Entrepreneurs in this area. Read more in Creating a Savings Culture. Read more in Saving

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