Bright Grey is likely to focus on mortgage and family protection products and Scottish Provident will look to more traditional life products and business protection following a repositioning of the brands next year.
Since Royal London acq-uired Scottish Provident in 2008, the protection industry has speculated over whether both brands will be kept, merged or changed so that one brand becomes direct and one deals only with advisers.
Bright Grey proposition director Roger Edwards says Scottish Provident and Bright Grey will be refreshed next year, with both businesses continuing to operate in the adviser space.
He says it is likely that Bright Grey will focus on mortgage and family protection products while Scottish Provident will concentrate on the more traditional life products and business protection.
Royal London published its interim management statement last week, showing that levels of new protection business at Bright Grey and Scottish Provident fell by 19 per cent in the first nine months of the year from £310m in 2009 to £251m.
Royal London said protection was continuing to be hit by the downturn in the mortgage market but added that both brands are seeing a surge in volumes for business protection products.
Edwards says: “Royal London gave the commitment that both the Bright Grey and Scottish Provident brands would be retained when it acquired Scottish Provident. Although there is quite a lot of overlap between the two businesses, the IFA market is big enough and client needs are diverse enough for the two brands to co-exist.
“What will probably happen next year is a relaunch and a refresh to say to advisers, ’this is how Scottish Provident and Bright Grey fit together’.”