Cisco’s announcement to cut 1,800 jobs in addition to Air France’s 5000 jobs and Citroen’s 8,000 jobs just indicate that the job cuts in manufacturing sector is far from over. While there seems to be a little talking up of the economy and the unemployment numbers have been reducing, what has not is the spate of announcements from big manufacturers. The difference this time is that the unemployment figures are coming from big manufacturers as against small and medium enterprises which used to be the maximum chunk a few months ago.

 

Future Of Income Protection Insurance In The UK

On July 17, 2012, in Uncategorized, by Kesh Thukaram

Income Protection Insurance is one of the most common protection products that gets a lot of media coverage apart from life insurance. The gender directive, RDR and the fact that the Government has launched a “Simple Products” initiative does bring a lot of attention to income protection insurance range of products.

There are fundamentally two types of products depending on the length of the benefit term. The short term income protection insurance pay up to 12 months of benefits, though some pay about 18 months. The long term income protection insurance pays until the age of 65 years and with some insurers until the age of 70 years. Accidents and Sicknesses are the most common risks these policies cover. Most short term policies also cover Unemployment.

 

This week unfortunately has yet again been one of those wherein the news was all about major closures. High street retailers such as Allders and Clinton Cards have announced closures of their businesses making thousands redundant. It is sometimes bewildering as when you think that the worse is over and if anything only good can happen, you hear of more businesses going under.


Running a business was never easy and in the current climate running a business and making profits is extremely challenging. We at Best Insurance consider ourselves very fortunate as we have been posting growth inspite of all these challenges. There are a few brave ones and we would like to think we are one of them that when the going is bad, is actually the best time to build a business as the business is built around grounded core values and when the market improves, such businesses built around strong basics becomes rich pickings.


The insurance industry has been equally hit but the number of people buying unemployment insurance and income protection insurance has not reduced. In the initial days of the business, I used to wonder thinking that we will soon come to a stage wherein most of the employed who care about their income would buy their income protection or unemployment insurance and the market would get saturated. However the fact is that there are less than 300,000 policy holders and there are about 14 Million people in the UK who work for more than 16 hours a week – thus still a large market to go after.


We get the opportunity to speak to the ones who have made a claim on their income protection insurance and unemployment insurances and the one common feedback we get is that they all agree that this was perhaps the best form of protection they have bought. There are also quite a few who leave it until the last minute and when the worse happens, they tend to be in the initial exclusion period and unfortunately cannot make a claim.


One of the things we have ensured is to make sure that we have a wide range of products and initial exclusion has been high on our agenda. We have unemployment insurance starting from an initial exclusion of just 60 days to a maximum of 90 days, unlike most of our competitors whose initial exclusion tends to be in the region of 120 days.


While we sincerely hope that there are no more major closures of businesses in the UK, equally we cannot stress enough that it is high time, people stop being complacent and invest that £40 – £60 per month and get their incomes covered by Best income protection insurance and unemployment protection insurance.

 

Unemployment Insurance

On April 23, 2012, in Uncategorized, by Kesh Thukaram

Over the last few weeks, there has been a lot of press about PPI claims management companies and some of the facts are fascinating. While the banks have repeatedly said and continue to insist that they have a well streamlined process to settle mis-sold PPI and the ombudsman have done their bit in enhancing the awareness of the claims that several people may be entitled to, it has not stopped the rise in the number of firms offering assistance on PPI claims and the sector commonly referred to as PPI claims management companies. Most of us at some stage in the past 18 months would have been a victim of un-solicited aggressive marketing from the PPI companies and this is just one indicator of how some firms are keen on making a buck without adding a lot of value.

 

Are You Unemployed – Does Age & Gender Matter?

On April 18, 2012, in Uncategorized, by Kesh Thukaram

We live in one of the most modern economies in the UK and we should take pride in the fact that we have one of the best legal systems in the world, low corruption and one of the best places in the world for people to prosper. But does age and gender matter, especially if you are looking for a job. One would like to say – No but sadly that is not how the reality is.

 

Unemployment Rates

On April 2, 2012, in Uncategorized, by Kesh Thukaram

The latest figures released on the Unemployment rates did not shock anyone. The unemployment rate for the Euro zone for February 2012 is 10.8%. This is higher than what was recorded in January 2012 which was 10.7%. This is the highest since the launch of the single currency in 1999. There is no sign of the economy improving in the short term and the unemployment rate for those in the age groups 15 and 24 was 31.9%.
As one would expect there is a wide divergence between the rates of unemployment across the major economies of the UK. Leading the unemployment rates is Spain with an overall rate of unemployment of 23.6%. Portugal follows with an unemployment rate of 15%. France is third at 10% followed by Italy at 9.3% and Germany with its low of 5.7%. The Unemployment rate in the UK in February 2012 was 8.4%. This will be a relief for some of the analysts and spin doctors in the Government that the UK employment rate is best next to Germany and the independence of UK economic policy and the balanced austerity measures has not only kept the Unemployment rates to lower levels but also the economy is in a much more stable platform than the Euro-zone. However the underlying assumption that the private sector will take the slack and create newer opportunities thereby the effect of the mass public sector redundancies will not impact the economy adversely is still a un-testes theory.
It amazes me as to how the Government gets away time and time again with their ill-founded theory that private sector can fill the gap of employment. There is no improvement in the economy. The fear of a double dip recession is getting real by the day and all indicators are that UK is already in the double dip recession. The budget figures for 2012 and 2013 are based on Unemployment numbers going up. Hence, it is inevitable that though UK has fared better than most European economies in the Euro-zone, it is likely that the situation may deteriorate. A lot depends on how deep the double dip in the recession will be.
It looks like finally people are waking up to the fact that their income from employment has to be protected and we are increasingly seeing people with no major commitments looking at income protection insurances. While there is a wide range of income and payment protection insurance available, customers must ensure that the policy they buy covers off all their main requirements from an unemployment or accident and sickness perspective.

 

Youth Unemployment

On February 6, 2012, in Uncategorized, by Kesh Thukaram

The total unemployment in the UK is currently at 2.62 Million and about 22.5% of the people in the age group 16 to 25 who are unemployed, which effectively means that 1 in 5 people amongst the youth in the UK are currently unemployed. This will cost the tax payer

 

British Workers – Most Stressed In The World

On January 30, 2012, in Uncategorized, by Kesh Thukaram

As per the latest report released Kenexa, British workers are one of the most stressed in the world. The other countries that follow are Brazil, Germany and USA. It is also interesting to note that the stress levels amongst British workers is double that of China and India.

This establishes a well-known fact that the economic prosperity of a country has direct co-relation with the stress levels of its workers. It is also well established from various studies that stress has a direct co-relation and has several physical and psychological consequences. For a country such as UK wherein we all enjoy free health care, this unfortunately is a vicious spiral. Stressed workers leading to increased health care expenditure, which in turn forces the country to cut more costs and that results in more stress for the workers.

 

Child Poverty In UK Continues To Rise

On October 11, 2011, in Uncategorized, by Kesh Thukaram

There have been some very disturbing numbers and statistics released by the Institute of Fiscal Studies (IFS) and it has warned that the child poverty in the UK is set to rise.

Increasing inflation which is bound to rise more due to the quantitative easing will only make this worse. The question is what is considered as poverty?

 

Payment Protection Insurance Regulations Tightened

On October 5, 2011, in Uncategorized, by Kesh Thukaram

In the recent months, there has been unprecedented amount of claims that the banks have set aside and paid on mis-sold payment protection insurance claims. The decision to pay the claims which ran into billions of pounds was first flagged off by Lloyds Banking Group. Lloyds led the led the pack by saying that they would pay back customers who have been mis-sold on payment protection and other banks such as Barclays, HSBC etc followed suit.
The Competition Commission has in the recent months imposed several restrictions on the sale of payment protection insurance and in summary they are as follows: