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‘Axing up-front payment would kill protectionbusiness’

Scrapping up-front commission on insurance products would kill the protection market because consumers will not pay fees for advice, says Lifesearch head of protection strategy Kevin Carr.

He warns that removing indemnity commission in the protection market would be counter-productive and lead to consumer detriment because people will be less likely to take advice if they have to pay a fee.

Carr believes that the protection industry needs to avoid being lumped together with other financial services sectors, such as pensions, where commission is heavily under fire.

Torquil Clark Life Insurance director Jason King says getting rid of up-front remuneration would worsen the protection gap because it would cut out advice out, which is a big part of the supply chain to consumers.

Carr says: “Consumers do not see the value in advice so why would they pay a fee for it? The protection market is fundamentally different from the investment and pension sides because there is no fund for the commission to eat into on protection products and therefore no detriment to the consumer.”

King says: “Getting rid of commission would work against the interests of consumers. Fewer people would be buying with advice, which would lead to more incorrect decisions so they would buy the wrong product or not cover themselves adequately.”


Davy flying the flag for Huddersfield

SimplyBiz chairman Ken Davy has been honoured as an ambassador for Huddersfield.He was picked out as one of 25 prominent personalities from the Yorkshire town, who have been chosen to help raise Huddersfield’s profile around the world.Other ambassadors include actor Patrick Stewart, author Joanne Harris and founder of the internet service provider Freeserve Ajaz Ahmed.Davy […]

Betting is on Brown to cap Pets

Chartered accountant MacIntyre Hudson says the odds are 4/6 on the Chancellor placing a lifetime cap on potentially exempt transfers in the pre-Budget report as part of a wider casting of the inheritance tax net.

New Unipass control centre launches

Origo had launched an online Unipass control centre tool to allow Unipass-enabled firms to improve their user population. The application was tested with 14 user firms. Participants in the pilot found that the system would save time by reducing calls to staff and helpdesks. The control centre will also be used to reissue any lost […]

adnitor to host first platform awards

adnitor is to host the first UK platform awards to recognise the achievements of platforms, advisers, asset managers and technology providers in the growth of the sector.The dinner and awards ceremony, held in association with Money Marketing and CWC Research, takes place at the Café Royal in London on 28 February with over 300 people […]


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