Reinsurers’ domination of the protection marketplace is detrimental to insurance companies and consumers, warns former Abbey chief Paul Bradshaw.He says the majority of protection business is supported by capital from a small number of reinsurers and he says this means that while consumers are subject to two lots of marketing from the provider and adviser, the underwriting is driven by what he calls a faceless third party – the reinsurer. Bradshaw says: “This is a market driven by the reinsurers. It is quite easy for us as marketeers here to identify the difficult issues this presents – the complexity of applications forms, the unacceptable claim declinature rate and, perhaps most ominously of all, the commoditisation of offering sums assured which were quite placeable in my youth are now beyond the market capacity – in huge denial of the explosion of wealth and indeed risk in this country.” Direct Life & Pensions sales and marketing director Richard Verdin agrees reinsurers have a massive amount of influence and have been the cause of increasingly complex applications forms. But he says he cannot see how this will change unless insurers can find access to other forms of capital. Verdin says: “A small number of reinsurers have a high degree of influence among all the insurers. The pain the UK protection market is suffering is largely because of reinsurers. They are introducing more complex underwriting and greater segmentation of risk and more detailed questioning around issues such as drinking and driving habits. There is too much power in too few hands.”
Simon Conn is fast making a name for himself as the guru on overseas mortgages. Conn, who has been involved in financial services since 1980, set up Conti Financial Services in 1994 when the company consisted of himself and a small office in Hove.
New Star Asset Management celebrates its fifth birthday this week as one of the highest-profile fund firms, with 8.1bn under management through acquisition and aggressive expansion. Founder and chairman John Duffield talks to Money Marketing about how he has built up the business. Q: How different was setting up New Star compared with when you […]
Hot on the heels of the announcement that Jupiter has poached Schroders opportunity fund manager Ben Whitmore, the fund house has achieved a second notable scalp.
This week by Sunday Telegraph acting deputy personal finance editor John GreenwoodBeing a personal finance journalist is all about being stingy. There is nothing wrong with stories along the lines of “Just a slight reduction in personal hygiene can save you pounds on your water bill” and, let’s face it, everybody likes a bargain. But […]
As more and more providers start to reveal their stance on the charge cap and removal of commission and active member discount pricing, we thought it would be worthwhile to look at what these are, and the steps businesses should be taking to prepare for this.
- Top trends
News and expert analysis straight to your inboxSign up
Latest from Money Marketing
The government is boosting its income from inheritance tax bills because advisers may have failed to communicate the full advantages of new exemptions. Speaking at a seminar yesterday morning, Prudential senior technical manager Graeme Robb pointed to the rise people affected by the increase in the residence nil rate band to £1m for married couples […]
National advice firm Foster Denovo has poached former Towry M&A head Henna Fry to lead its acquisition strategy. Fry played a leading role in the sale of Towry to Tilney Bestinvest before leaving her role in 2016 to become an independent consultant. She will take on the newly created role of head of corporate development […]
The Financial Ombudsman Service has appointed Money and Mental Health Policy Institute vice chair Richard Lloyd to lead an independent review into its complaints handling process. The former Which? executive director has been charged with producing a report into FOS’ practices after a Channel 4 documentary earlier this year suggested a number of failures at […]