View more on these topics

Bupa fears over premium pressure

Bupa says some IFA networks have been asking protection providers to increase their basic premium rates to boost adviser commission payments.

The firm says it has been urged by networks to put up premiums , most recently for critical-illness cover.

Individual protection product and marketing manager Steve Casey says he is concerned this will encourage dual-pricing and that providers agreeing to this are effectively buying themselves on to network panels.

Casey is also worried consumers will end up paying more for the same products from these networks and says they have not attempted to justify why they deserve increased commission.

He says: “We have been asked to increase the basic price and by doing that pay higher commission than we normally do. We said no. It is effectively buying yourself on to their panels.

“If it was because the network was giving exceptional customer service or because they spend more time with their clients, then we might consider it but they give no justification. People know it goes on but nothing is happening to stop it.”

Scottish Provident head of marketing Alison Turner-Holmes says ScotProv has not been approached by any networks or advisers to increase premium rates.

She adds: “In terms of treating customers fairly, I am not sure this is an appropriate approach in the current market climate.”

Recommended

Bank on Mr Bean?

If the Bank of England was somewhat downbeat in its assessment of financial stability issues last month, the Federal Reserve Bank delivered a more upbeat message. Announcing a further quarter-point rate cut last week, the clear implication in the accompanying statement was that sufficient had been done to keep growth on track.

Former Morgan Stanley COO launches PensionsFirst

Former vice chairman and chief operating officer of Morgan Stanley in Europe, Amelia Fawcett, has launched securitisation group PensionsFirst, which aims to manage the risks faced by defined benefits schemes.PensionsFirst says it has created a “unique family of flexible investment products for DB schemes, to provide dedicated income streams to match all or any part […]

Frexit & contagion risk in Europe

Many commentators have suggested that the UK’s exit from the European Union will trigger a domino effect, leading to its eventual break-up. Neptune’s Rob Burnett discusses the likelihood of this happening. Read more: Important information Investment risks Neptune funds may have a high historic volatility rating and past performance is not a guide for future […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment