Market Statement
Following our acquisition by RGA on 1 February 2019, the Omnilife Board has been considering the future of the existing UK Group Risk business and has concluded that this business no longer represents a strategic priority for the company. Consequently, the difficult decision has been taken to exit the UK Group Risk market.
In deciding on the process to exit the UK Group Risk market, the Omnilife Board has carefully considered impacts on key stakeholders, including:
- Customers, ensuring that they are treated fairly and will be no worse off as a result of this decision. We are delivering this through a solution which achieves at least equivalent terms to those which they have with Omnilife, in situations where policy transitions occur within the current rate guarantee period; and
- Intermediaries and business partners, ensuring they are kept informed throughout each stage of the process and involved as much as necessary to ensure an easy and seamless transition.
Following a competitive market review, an agreement has been reached with Legal & General Group Protection, who will work together with intermediaries to invite Omnilife policyholders to switch to L&G at or before their next policy anniversary. Favourable terms have been secured, including rate extensions and other enhanced terms, such as increased event limits where appropriate.
With immediate effect, Omnilife will close to new business. Existing quotations and policies that incepted prior to 1 July will be included within the scope of the transition. It’s expected that the transition process will commence during July 2019 and will be materially completed within 12 months.
Omnilife and L&G are now working together to develop and deliver a process which minimises policyholder and intermediary effort. Where there is additional work for Intermediaries, for example transferring schemes to L&G outside the rate retest cycle, additional commission payments will be available.
L&G will be contacting Intermediaries regarding the process and specifics of their Omnilife portfolio. At a high level on confirmation from intermediaries, that customers agree to a switch, L&G will use data provided by Omnilife to produce a quote confirming the enhanced terms, prior to issuing a new L&G policy.
Further communications in this regard will come from Legal & General who are keen to ensure an effective continuation of cover for all Omnilife customers and a smooth transition for the benefit of all parties.
We would like to thank everyone who has supported Omnilife over many years and reassure you that we will continue to deliver the excellent service you’ve come to expect from us, even as we now run off this business. Through partnering with Legal & General we are confident that we will deliver a long-term solution with beneficial outcomes for you and our mutual customers.