How we found the 2006 Risk Company of the Year
The Money Management/ Dexx&r Adviser Choice Risk Awards, now in its fourth year, are based on a number of criteria and processes.
Initially, Money Management and Dexx&r met with a panel of risk insurance advisers who have built practices and careers specialising in the area of life and 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 ranking each based on the importance of each definition type, for example ‘own occupation’ and ‘any occupation’ definitions.
The rankings were then converted to a score for each key definition.
Premiums were calculated for a wide range of sums insured for term and total and permanent disability, trauma and monthly benefits for disability income and business expenses insurance were calculated.
Separation premium calculations were conducted for males and females, smokers and non-smokers, over a range of ages from 21 to 60 at five-year 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 was based on data collected by Dexx&r and published in Term Life Analysis and Disability Analysis.
Premium calculations were 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 basis can be found in Dexx&r’s Risk Rating Report.
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