Thursday, 07 February 2019 08:54

New ABI modelling tool factors in illness and injury

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ABI ABI

The Association of British Insurers (ABI) has launched a beta version of an online calculator, which works out consumers’ likely financial entitlements if they are unable to work due to illness or injury.

‘Percy The Protection Calculator’, which is still in development, is a calculator aimed at consumers that is designed to give quick access to an accurate estimation of likely monthly income in the event of injury or illness.

The system works by tapping into Government benefit data and combining it with information provided by the calculator’s user.

The ABI says the calculator is aimed at “raising consumer awareness and this will be its sole purpose.”

It says the data will not be stored and will not be used for any other purpose – users will not be required to share their name, first line of address or email address.

The ABI says that each year, one million workers find themselves unable to work due to prolonged sickness or injury and says it is “essential that people are aware of what their income might be under these circumstances, particularly as it is highly likely to be significantly less than their usual take-home pay.”

The calculator can be found on the ABI’s website and feedback is encouraged.

Roshani Hewa, head of protection and health at the ABI, said: “Our vision for the creation of Percy is to provide a calculator that gives people the information they need in order to plan their finances and prepare for any unexpected income shocks in the future.

“The data people provide will never be stored or saved for any reason whatsoever.

“We know that Percy isn’t perfect just yet, which is why we’re so keen for users to engage in its development.

“We’ll be working tirelessly towards its full launch later this year, and hope that in the meantime it provides invaluable information to boost people’s financial awareness.”

Michael Royce, proposition manager at the Single Financial Guidance Body, backed the calculator and added: “We recognise that it can be difficult for people to understand how much of a drop in income they might experience in the event of not being able to work because of illness or of caring responsibilities.

“This calculator allows people to get a sense of any potential shortfall not made up by either sick pay or other entitlements and to start taking action to build up their financial resilience.”

 

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