The Money Management/Dexx&r Adviser Choice Risk Awards, now in its fifth year, are based on a number of criteria and processes.
Initially, Money Management and Dexx&r met with a panel of experienced risk insurance advisers who have built practices specialising in the provision of life risk insurance advice.
The panel was asked to score each of the features included in term, trauma, total and permanent disability, disability income, and business overheads insurance products and rank the relative importance of each feature.
The scores for each feature were then weighted (determined by the average of the weightings nominated by the panel) and combined with scores from the previous year. These scores were summed to give a total weighted score for each feature.
Definitions were also scored, with advisers determining their ranking based on the importance of each definition type; for example, ‘own occupation’ and ‘any occupation’ definitions and the relative importance of partial disability definitions and the type of definition, one duty or 10 hours. The responses were then converted to weightings for the score for each key definition.
Premiums were calculated for a wide range of sums insured for all lump sum risk products and monthly benefits for disability income and business expenses insurance.
Separate premium calculations were conducted for males and females, smokers and non-smokers, over a range of ages from 21 to 60 at five-yearly intervals.
The relative cost for each product was weighted by age, gender and smoker/non-smoker status.
The total weighted score for features, definitions and price per product was then calculated out of a maximum of 100. The weightings applied for features, definitions and price in each product category were determined by averaging the adviser responses.
The leading risk company was determined by calculating the total score of the highest scoring products across each category for every company.
All product information is based on data collected by Dexx&r and published in Term Life Analysis and Disability Analysis.
Premium calculations are based on those generated by the Dexx&r Risk Developer Software. Some products were excluded where they were not available across all scenarios.
Each of the features, definitions and price comparison bases can be found in Dexx&r’s Risk Rating Report.