View more on these topics

Complex policies blamed for slump in IP sales

Income protection needs a complete overhaul to reverse falling sales, says Defaqto.

Its report, Income Protection Insurance 2007 – A Time For Action Not Words, says insurers must simplify their products to close the estimated £175m income protection gap.

Defaqto says different ways of treating occupations and inconsistency in applying benefit limitations are stifling the product because they make it difficult for portals to produce accurate comparative quotes.

The report says: “Income protection insurance is a perfect example of a plan that does not treat customers fairly. We believe that continual tinkering will only make things worse and the industry should break the mould and start again. Doing nothing is no longer an option.”

It says an uncomplicated low-cost product is required for simple and non-advice channels where income protection is sold alongside a primary sale while financial advisers require a more advanced plan.

It adds that income protection could benefit from the loss of consumer faith in payment protection insurance as a result of Competition Commission and FSA investigations.

However, Unum says the income protection industry has made rapid progress which is not reflected adequately in Defaqto’s report and claims radical change is unnecessary.

Unum corporate services director Joanne Hindle says revised application processes, online submission facilities and teleunderwriting have cut processing times significantly and income protection rates are now very competitive.

Hindle says: “Radical change in an industry that has already advanced so far is to a large extent unnecessary and may simply confuse users and lead to further uncertainty.”

For more protection news, see www.moneymarketing.


FSA bans Liverpool IFA

The Financial Services Authority has stopped Michael Sheron from carrying out regulated activities after finding that he was not fit and proper to oversee or manage a business. Sheron was a partner at Sheron & Company Financial Advisers and was solely responsible for its day-to-day business. The FSA found that Mr Sheron lacked competence and […]

The fortune cookie

Melchior is beginning to make a real name for itself but for many investors it will already be too late as it is limiting the amount of money going into its funds. This is an increasingly common practice so intermediaries really need to do their homework and assess funds like this in the early days. […]

Star treatment

David “Martin Clunes” Stewart from the Abbey press team (no, not from Eurythmics and, no, I never tire of that joke) got more than he bargained for when his esteemed colleagues in the press office mocked up a birthday card for him from the Dark Side no less. And a birthday belated happy we wish […]

Quality street

Last week, I returned to the airwaves for the first time in some months. The subject matter seemed particularly apposite, given the state of markets. How should investors go about buying shares was the question posed to me. Inevitably, it led into whether private individuals ought to buy shares direct and what was my opinion of the wild gyrations in the market at present.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm