Chairman’s Welcome Statement

families at no additional cost. In 2022 the Society increased the health services offered to members through our partnership with Square Health. This included increased digital GP consultations, second medical opinions, mental health support, physiotherapy and health MOTs. These services are available to all members and their families irrespective of whether they make a claim or not. In addition to our Mutual Benefits programme the Society’s discretionary BF Care programme continues to deliver crucial financial support for members and their families through life changing events such as a close relative needing full time care, terminal illness or death.

Transformation

In January 2021, the Society migrated all Protect policies to a new policy administration system and simultaneously launched a new quote and apply underwriting platform. These new technologies have provided an excellent platform for the Society to efficiently and effectively service existing members and attract new members. In 2022 the Society utilised the new technology to significantly improve the propositions offered to new, and existing, members including the introduction of level guaranteed premiums. Level guaranteed premiums stay the same for the whole of the policy and are a popular option for some members. Providing the option of guaranteed level premiums has significantly increased the accessibility of the Society to new members and intermediaries.

Strategy

Purpose Aim Promise Commitment

providing a personal service which they will value. We are guided by our promise to do the right thing for our members, rather than pursuing shareholder profit, which allows us to consider the situation of each member and offer access to additional discretionary benefits. By putting our members at the heart of everything we do, more intermediaries will recommend us which will allow us to grow. The Board remain committed to Mutuality which allows us to wholeheartedly focus on the needs of our members and deliver our inclusive strategy to provide support to as many members as possible.

In 2021 the Board undertook a dedicated strategic review focusing on securing the Society’s future growth potential, support for members and future financial resilience and sustainability. Crucially, the review considered how the Society will continue to meet its obligations both today and in the future years to come. The review examined the successful migration to the new administration and new business technology platforms and how these capabilities can provide the opportunity for the Society to develop new products and propositions, improve efficiency and improve the support available to new and existing members. Key strategic priorities were set to ensure the Society’s future financial resilience and sustainability. These priorities included increasing the Society’s membership, enhancing existing and new products and propositions, expanding the size and diversity of intermediated distribution and increasing our active support of members to return to health. I am delighted that the Society has made substantial progress towards these priorities, and I would like to thank all the Society’s teams, our technology partners and our intermediary partners who have worked so hard and effectively in 2022.

Regulation

The Society’s strategy is driven by our purpose to be a trusted and relevant provider of financial support for our members in times of need. We aim to offer attractive Income Protection products that meet the needs of our members and which intermediaries will want to recommend to their clients. We aim to be easy to do business with for intermediaries, so they will consider us for their clients and help us to grow, and for our members by

The Society continues to respond fully to the requirements of our two regulators, the Prudential Regulation Authority and the Financial Conduct Authority. In 2022 The Financial Conduct Authority set out the requirements of the Consumer Duty rules which the Society welcomes. The new requirements set higher and clearer standards of consumer protection across financial services and requires firms to put their customers’ needs first. As a Mutual, the Society exists solely for the benefit of members and has always put the members’ needs first, and we therefore welcome this very significant piece of regulation that sets higher expectations for the standard of care of all firms across the financial services industry.