ABI oversteps the mark on critical advice
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The Association of British Insurers has been criticised for overstepping its remit with plans to produce checklists and template scripts for advisers selling critical-illness cover.
The FSA’s review of the insurance conduct of business sourcebook published in June found that limitations of cover were not explained in 82 per cent of phone sales sampled. The ABI is carrying out an oral disclosure project. The scripts have been developed with the help of Lifesearch managing director Tom Baigrie and will serve as guidance rather than as rules.
Assistant director of health and protection Nick Kirwan says: “This is about raising standards and working with the FSA and getting an approach that people are comfortable with rather than having a heavy-handed regulatory approach.”
Kevin Carr Consulting managing director Kevin Carr says: “I am far from convinced this is within the ABI’s remit or that the ABI are the best placed organisation to lead the work.”
Le Beau Visage managing director Peter Le Beau says: “I do not think advisers will be very comfortable about providers driving this process.”
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