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Abbey to raise Pegasus CI rates

Abbey for Intermediaries says it will increase critical-illness premium rates for Pegasus whole-of-life contracts.

Abbey is writing to IFAs this week to tell them that the new rates start in May 23.

Average increase for new maximum cover cases with CI will be 23 per cent and 28 per cent for new standard cover cases.

Life cover rates will not alter other than a small percentage change because of the 1 per cent reduction in growth rate.

Abbey for Intermediaries head of marketing and product development Nick Kirwan says: “The whole-of-life market has escaped notice in the past but it is now catching up with the term market.

“We are keen to let IFAs know about the changes so they are clear about them and can advise their clients appropriately.”

However, one IFA says clarity has not been Abbey&#39s strong point.

Sage Roxborough IFA Ioannis Tsakalis, who has not yet received notification of the price increases, says a critical-illness policy he introduced in January for a £750,000 sum assured has suffered unexplained delays, loss of information and general disorganisation.

The policy is back in the underwriting queue and there has been no apology to Tsakalis or his client.

He says: “Self-preservation instincts regarding their own name and reputation should make them want to know about any problems and act to do something about them. How far are we going to have to push this?”

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