Critical-illness cover is stuck in the past and innovation is needed to ensure products are relevant to consumers, says Prudential head of protection Paul Cowman.He says medical advances have brought the need to revamp the product as definitions drawn up 20 years ago no longer relate to today. Pru is introducing a product at the end of May that is expected to take the form of a combined critical-illness and income-protection policy paying out in stages. Cowman says the market has become too price-focused and insurance companies need to take more responsibility for ensuring consumers understand their products. He says there is a huge discrepancy between what customers believe is covered by their policy and what is not actually covered. He says intermediaries have an important role to play in the communication between providers and consumers but marketing material needs to be made clearer. Cowman says: “Many policies do not work because the conditions they cover no longer meet the definitions of 20 years earlier. Market dynamics have created a price-driven industry, with one or two rate cuts every week, but no new illnesses are being covered. “We know that people are prepared to pay more for better cover. The current product, paying out on a single payment, just does not work. The market is at a crossroads and needs to be shaken up.”
AIG is understood to be entering into the bulk annuities market in the UK. The US insurer will be launching with the technical support of outsourcing firm Higham Group. AIG has been linked with the possible acquisition of Prudential, one of the largest suppliers of bulk annuities in the UK.
Money Marketing has great sympathy for Lansons PR and uber Arsenal fan Joe Laing. Having got tickets at the last minute for the Champions League Final last week, the Lansoneer rushed to get the Eurostar in time to get to Paris for the match. After paying an obscene amount of money for his ticket, he […]
I was interested to read the survey from the Association of Mortgage Intermediaries regarding intermediaries’ views on home information packs. With 68 per cent of the AMI’s members considering the impact of Hips on their business, it intrigued me how only 7 per cent are planning to produce Hips in-house while 46 per cent plan […]
News has just broken that the Association of British Insurers has come out against a review of the Financial Services Compensation Scheme, preferring instead to stick with the status quo. Not only that but, they are calling for a review of the amount of capital IFA firms are required to hold (and I don’t think they mean less).
Joshua Ausden, Head of Client Investment Strategy, Neptune Read more here Important Information – for Investment Professionals Only. Not for Retail Clients.Investment risksNeptune funds may have a high volatility rating and past performance and forecasts are not a guide to future performance. These are Neptune’s views and as such this document is deemed to be […]
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The Financial Services Compensation Scheme has declared self-invested personal pension operators Stadia Trustees, Brooklands Trustees and Montpelier Pension Administration Services in default. The lifeboat fund has received around 150 claims for compensation relating to the three businesses. Those claims relate to how the businesses set up, operated and administered Sipps through which people invested in […]
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