Assistant director of health and protection Nick Kirwan says a lighter touch on protection regulation is key to simplifying the sales process. He says: “There are not enough advisers to serve protection needs and we need to find ways to increase that capacity. One way is to cut down on some of the paperwork and red tape.
“We work hard at improving things for consumers and we have worked really hard on non-disclosure, so can we not say to FSA this product does exactly what it says on the tin, can we not lighten up the regulatory touch?
“Most general insurance products are regulated much more lightly than life and critical illness. Now that life and CI are fit for purpose, can we now regulate them in the same way as motor insurance and other products?”
CBK Colchester principal Peter Chadborn says: “If we get lighter-touch regulation, all that is going to help is the non-advised and direct providers sell more units. It it not going to help true advisers.”