Former Ageas managing director Martin Werth is calling on the Association of British Insurers to make it compulsory for its member firms to send out annual benefit statements to protection customers.
Werth says the ABI should amend its code of conduct rules to force insurers to send their customers annual benefit statements, which would provide details of all the policies they hold with that particular firm.
Of the big life companies, Aegon, Ageas, Aviva, LV=, PruProtect and Zurich send out annual benefit statements. Bright Grey, Scottish Provident and Legal & General and a number of other banks and building societies do not.
Werth says: “The ABI should be saying that all new protection contracts sold in 2013 should be sold with a requirement to send an annual benefit statement.
“That should be part of the code of conduct. If we have customers and we expect them to be with us for the next 15 or 20 years then it is reasonable that they should expect to hear from us.”
An ABI spokeswoman says: “This is a decision for ABI members themselves to make, either individually on behalf of their own firm or collectively, as part of the protection committee.”
Money Marketing and Werth are looking to create a protection awareness day designed to draw people’s awareness to the fact they might be underprotected.
The idea of the awareness day would be to send a statement to all customers with an existing protection policy on the same day each year detailing what policies they have in place.
Plan Money director Peter Chadborn says: “This is the right thing to do. It could act as a good prompt for people to increase their level of cover.”