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‘ABI on the wrong route in axing TPD’

Former Swiss Re head of life and health underwriting Jerry Brown says the Association of British Insurers is wrong to propose the removal of occupation-based total permanent disability from critical-illness insurance plans.

Brown said the proposal is “going in the opposite direction” at a time when the industry is trying to boost innovation by looking at hybrid products, such as adding IP on to CI.

He said: “Given that virtually every innovation involves some kind of hybrid between income protection and CI, why are we being forced down a route by the ABI to not move towards that solution? They are going down a different route by saying to consumers, we are going to fit you into pigeonholes that may not pay the same number of claims.”

He said the ABI should keep occupational-basis TPD and put IP into CI. By doing so he said: “You can manage the claim, decide which ones are genuine TPD claims and manage your CI cover. There are a significant proportion of people who go down with an illness that only occupational TPD will address.”

But Lifesearch managing director Tom Baigrie said: “Everyone needs IP. CI is an expense on top of that primary need and should be voluntary, so tacking the basic cover on to the luxury product is wrong. It is a clumsy way of doing it.”

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Guide: how to change your auto-enrolment support

As we approach the two-year milestone of auto-enrolment, employers have had the opportunity to truly assess the capabilities of their chosen support. They are also now realising that getting to the staging date was the easy part, and that support is required for almost every aspect of the day to day running of their scheme. With the three-year re-enrolment window coinciding for many with the total removal of commission and Active Member Discounts from pension-related products and services, as well as the introduction of the pension charge cap in April 2015, many employers will have no choice but to review their support options. But, what is involved in transitioning your auto-enrolment scheme away from your current support options? This guide from Johnson Fleming aims to outline some of these key areas and provide information and discussion points on what you need to consider.

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