Fidelity Life recently had its financial strength rating of A- (Excellent) affirmed by ratings agency AM Best, and chief financial officer Simon Pennington says things have turned out “better than expected” for customers through the COVID-19 crisis.
Pennington says the coming year will be all about providing ongoing reassurance to Fidelity Life’s customer base, and working with its adviser network.
“Fidelity Life has obtained a rating every year since 1996, well before ratings were compulsory, and we’re proud to have maintained an A- (Excellent) financial strength rating from AM Best for the past 25 consecutive years,” Pennington commented.
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“In responding to COVID-19, our focus has been on providing reassurance and continuity for our customers and advisers. Fortunately, so far things have turned out better than expected.”
“While advisers are resilient and have adapted to new ways of working during the lockdowns, some customers have unfortunately suffered the loss of their job or a fall in income, leading to mental and financial stress,” he explained.
“We’re proud we’ve been able to offer these customers help to keep their policies in place until they can get back on their feet.”
Pennington noted that Fidelity Life has so far supported 630 customers by way of premium deferrals and other financial hardship provisions that it has built into its policies. He says the number of customers needing to take these up has been “steadily dropping” since last June, and that very few COVID-19 related claims have come through so far.
“In terms of claims, we’ve only received two COVID-19 related claims to date,” Pennington said. “The cushioning impact of the wage subsidy scheme – which we had no thoughts of applying for ourselves - was one reason for this.”
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“On the new business front, in the final quarter of our last financial year (April - June 2020) new business was temporarily impacted as advisers adjusted to operating under lockdown conditions,” he added.
“But since then we’ve seen new business rebound strongly and we’re pleased to say we’re on track.
“The announcement of a community case over the weekend is a reminder that we need to remain cautious and vigilant, however. Claims, lapses and new business are all likely to be impacted if the economy worsens.”
