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ABI: Protection products amongst hardest to understand

New research from the ABI shows consumers find protection products amongst the hardest to understand.

Payment protection insurance and critical illness cover ranked the lowest in terms of understanding. Some 52 per cent of the 2,500 respondents rated their understanding of PPI at five out of 10 or below while 36 per cent rated their understanding of CI at five or below.

The most well understood products were savings and loans, with 67 per cent and 62 per cent, respectively, rating them at seven or above in terms of understanding.

Respondents were also asked how difficult they find it to compare the features of each type of financial product.

Once again, PPI and CI cover came bottom, with around 55 per cent and 45 per cent of people, respectively, rating their ability to make comparisons with similar products. Pensions and annuities followed with just under 45 per cent of respondents rating their ability to compare these products at five or below.

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Comments

There are 5 comments at the moment, we would love to hear your opinion too.

  1. I think the consumers were deluding themselves if they thought they understood CI cover…

  2. Is it just consumers, Jerry?

  3. I doubt it very much Alan…

  4. The research is flawed in terms of the whole protection market. Where are IP and STIP ? I asked the report’s editor and he said he had decided not to include them. I am still baffled why. I have seen other research that suggests CI is easier to sell than IP because its more transparent and the process is easier.

  5. Not surprised because let’s be honest and look in the mirror, it’s the way it is sold or actually the lack of selling CI that has caused these stats. General public opinion think it is a waste of time and after working many years with all different types of IFA’s they think the same that’s until recently because of new regulations and other areas of income dropping i.e mortgages, investments etc protection is the new hip product to sell plus falls outside of RDR. Same with IP there seems to be a buzz about that too. Thankfully I have always believed in protection & find it easy to understand & so does my clients!

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