Understanding Omnium Risk Research

Risk research and ratings help advisers and their clients evaluate the strengths and weaknesses of life insurance products, ensuring they select the best fit for their needs.

Morningstar AdviserLogic partners with Omnium to provide research insights into insurance score calculations.

Given the complexity of life insurance, Omnium’s methodology considers all product intricacies while accurately reflecting client needs in final scores. This document outlines how Omnium gathers research and translates it into product scores.

Covered Needs

Life insurance products provide financial support when an insurable event occurs. Omnium categorises these events as Covered Needs, which form the basis of research and premium assessments. The seven main Covered Needs include:

Life Cover	A payout to beneficiaries upon the insured’s death (also known as Term Cover).
Total and Permanent Disability (TPD) Cover	A lump sum payment in case of permanent incapacity.
Trauma Cover	A lump sum to aid recovery from serious medical traumas (e.g., cancer or heart conditions).
Income Protection Cover	Regular payments replacing salary during temporary disability or incapacity.
Business Expense Cover	Payments to cover business expenses when a key person is unable to work.
Child Trauma Cover	A lump sum for children affected by serious medical conditions.
Needle Stick Cover	A lump sum benefit for medical professionals infected with HIV, Hepatitis B, or Hepatitis C due to workplace accidents.

👉Omnium also evaluates common aspects across all cover types, such as insurer strength, level premium availability, and benefit indexation options.

Research Data Categories

Omnium categorises insurance product data into Features, ensuring an industry-wide comparison. There are over 260 Features, continuously updated to reflect new market trends. Features are assessed using the following data points:

Disclosure Text

Summarises information from insurers’ product disclosure statements and policy documents.

Feature Score

Rates a feature’s strength relative to the market, available in multiple formats:

Raw score (0-100)
Letter grades (E to A / E- to A+)
Five-star rating
Binary availability (Yes/No)

Sub-Features

Features are further broken down into 1100+ sub-features, with 690+ sub-features scored.

Strengths, Limitations & Commentary

Summary of key benefits, constraints, and analysis for each feature.

Constructing Product Feature Scores

Omnium calculates a product’s feature score through a structured methodology:

Scoring Sub-Features	Each sub-feature is scored based on market median and maximum values. Scores range from 0-100.
Feature Score Calculation	Weighted combination of all sub-feature scores. Normalised to ensure fair comparisons.
Cover Type Score Calculation	Feature scores are combined based on three Omnium weighting models: Essential – Emphasises core features. Balanced – Mixes essential and additional benefits. Comprehensive – Weighs ancillary benefits more heavily.
Product Score Calculation	Cover Type scores are aggregated. If premiums are included, higher-cost features weigh more heavily in final scores.

Premium & Combined Scores

Once premiums are calculated, Premium Scores and Combined Scores are determined:

Premium Score	Assesses affordability relative to the lowest-priced product.
Combined Score	A weighted average of Feature and Premium scores, customisable based on adviser preference.
Price Weighting	Ensures higher-cost features influence the overall score appropriately.

Constructing Portfolio Scores

Omnium enables advisers to create portfolios by combining multiple life insurance products to cover all client needs.

Portfolio Construction Process

Product Selection	Omnium prioritises products based on cost or benefits.
Portfolio Score Calculation	Aggregates individual product scores. Weighted by total portfolio cost, factoring in discounts and multi-policy benefits.
Feature & Price Scoring	Evaluates overall portfolio effectiveness.

Legacy Product Scores

Omnium has historical product data dating back to 2003. Legacy research enables comparisons across time, with dynamic scoring to ensure fair assessments without exceeding a maximum score of 100.

Portfolio Premium Modelling

Omnium calculates portfolio premiums by aggregating individual product premiums, applying:

Multi-policy discounts
Reduced policy fees
Insurer-specific discount rules

Advisers can customise product selection, either choosing the best or least expensive options available.

Interactive Personal Scoring

Omnium’s Interactive Personal Scoring tailors research based on client specifics, ensuring personalised recommendations.

Scoring Adjustments Based on Client Data

Demographics	Age, gender, and occupation influence available product options.
Client Preferences	Unwanted features are excluded from the final score.
Dynamic Updates	The more information available, the more precise the recommendations.

👉This ensures that scoring adapts to individual needs, providing accurate product insights tailored to each client.

This structured approach ensures transparency in Omnium's risk research, enabling advisers and clients to make informed insurance decisions.

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