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82% Of IFAs choose protection on price

Price is the deciding factor for 82 per cent of IFAs when choosing a protection provider, according to a survey by Lincoln Financial Group.

The research among 192 IFAs shows they value price ahead of service levels, flexibility of underwriting and payout levels.

The second most commonly cited reason for recommending a provider was its presence on portals, selected by 36 per cent of respondents.

Advisers predict that the price will continue to be the deciding factor in future, with 78 per cent saying they will continue to place their business with the most competitively priced providers.

Head of life sales and marketing Ian Noble says: “Competition in the marketplace has meant providers have been vying for business by lowering prices. This is good news for the consumer, providing the lower prices do not translate into tighter claims standards and more declined claims.

“But as always, price should not be the only concern for policyholders. It should be considered on balance with payout rates and levels of service.”


Magic numbers

Good news for the protection industry for once. After a slew of bad press in recent weeks, notably on Watchdog and in Which?, critical illness insurance came up trumps in the Financial Ombudsman Service’s annual review with a drop in the number of complaints received about the product.

NU will inject £180m into legacy products overhaul

Norwich Union says it will invest £180m this year to move its 850 legacy products onto five internal platforms and streamline its systems.NU has built up a large number of legacy systems as a result of the numerous mergers and acquisitions that have combined to form the firm.Distribution director David Barral says: “You would expect […]

Tories say Hip U-turn will add to public’s confusion

Tory Shadow housing minister Michael Gove says the Government must go back to the drawing board over Hips.Speaking in Parliament, Gove suggested that the timing of the move was politically motivated and damaged confidence in the industry and affected the stability of the housing market. He said the Government cares more about minimising its embarrassment […]

Changes to early exit pension charges

In November last year, the FCA announced that from 31 March 2017, early exit pension charges will be capped at 1% for those customers who are eligible to access their retirement savings from age of 55. The rules also state that for new personal pension plans started after that date, or on new increments into […]


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