Lifesearch chief executive Tom Baigrie believes there will be an influx of poor quality advisers in the protection market as a result of the RDR and the introduction of gender neutral pricing.
Baigrie fears unscrupulous advisers will try to take advantage of the fact protection is not covered under the RDR and a potential increase in business if people look to review their cover when gender neutral pricing is introduced.
Speaking at the Lifesearch awards in London on Wednesday, Baigrie said: “What we fear is that with RDR approaching and premiums set to rise, our market will attract many new starters and a lot of them will be of very low quality. What we fear is provider eagerness to maintain market share will accelerate the already endemic granting of agencies to frankly dodgy distributors, who are thus allowed to sell great brands and good products awfully.
“A client ripped off by one of these will hate our industry and possibly your brand forever. In our opinion, you simply have to stop to stop the laissez faire approach to the quality of distribution and the granting of new agencies.”
Axxis Financial Planning director Owen Wintersgill says: “I do not think this will happen. The vast majority of protection cases are linked with when people take out a mortgage and I think a lot of advisers will be put off by the fact that brokers are struggling at the moment, so will not want to enter that sector.”
Lifesearch also launched a code of conduct for protection sellers at the awards ceremony.