View more on these topics

ABI move to axe TPD could boost severity products

The Association of British Insurers’ proposal to scrap total permanent disability from critical-illness cover could act as a springboard for severity-based products, says Pru Protect.

Actuarial and product director Deepak Jobanputra says the plan to axe TPD could result in a number of providers looking at severity-based products.

He says: “One of the problems with TPD is that people do not always understand total and permanent, which leads to some claims being declined. With severity-based cover, claims can be paid much earlier and this could improve the outcome for some people.”

Pru Protect is one of the few providers currently offering this type of cover.

Friends Provident protection product manager Denis Bayle says: “Severity and disability are a different way of looking at critical illness and one we would be interested to explore further.”

Zurich protection marketing manager Gerry Warner says: “We are not convinced the market is ready for such a move.”

Lifesearch senior policy adviser Matt Morris says: “While severity-based products are good, traditional CI cover still has an important role in the market.”

Recommended

5

It will never happen to me

Research by Scottish Provident has highlighted once again the need to end the ‘it won’t happen to me’ culture gripping the UK when it comes to their protection needs.

Skandia merges away Aggressive fund

Skandia Investment Management has merged its Aggressive fund into the recently-launched Global Dynamic Equity fund.Aggressive fund investors voted to merge their £35m assets into the global vehicle which has a more flexible and wider remit and is able to use Ucits III powers.The Aggressive mandate was split between a range of fund groups, each running […]

Japan trade surplus improves

Japan’s balance of trade improved significantly in June on an annualised basis, although both imports and exports remain sharply down.Provisional figures from Japan’s ministry of finance show the country saw its trade surplus rise to ¥508 billion (£3.25 billion), up from ¥300 billion last month. Another positive sign was that the month saw an increase […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment