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&#39Pru&#39s protection surge putting strain on admin&#39

Prudential is facing admin delays and may have to increase its rates

as it shows the strain from vastly inc-reasing its protection market

share in recent weeks, according to broker Direct Life & Pensions.

DL&P says that due to term and critical-illness premium increases

by rivals in the last couple of months, the Pru has found itself at

the cheaper end of the market and its business volume has

substantially increased as a result.

DL&P says that over the last two or three weeks, Pru has jumped

over Friends Provident to join Norwich Union and Legal & General

at the top of the heap, taking 25 to 30 per cent of new business.

But its admin is starting to show the strain and DL&P sales &

marketing director Richard Verdin predicts that the Pru will soon

move to stop the inflows of business.

The Pru says it is aware of the recent delays in its service and is

working to reduce them.

In the interim, it is off -ering automatic accidental death cover

while applications are being processed.

Spokesman Darragh Leeson says: “We are aware that there is a delay in

processing applications.

“We are throwing our resources at it in an attempt to reduce

unnecess-ary delays.”

Verdin says: “I think the Pru manages its business very well. I think

it will do what any business that manages its business well would do

and that is to take the new business volume for a while and then

adjust its prices to relieve the strain.”

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