View more on these topics

Cost of protection to rise

Protection providers have warned that new regulation such as Solvency II and gender-neutral pricing will significantly raise the cost of protection policies from 2013.

Solvency II and gender-neutral pricing are to come into effect on January 1, 2013 and December 21, 2012 respectively. Life companies also have to consider I minus E tax changes.

At the Sesame symposium, Aviva UK chief executive David Barral said: “If advisers sell protection in 2013 they will be doing so at a higher price, so if they have customers who are thinking about buying protection they would be better off buying it in 2012.” Friends Life chief executive Andy Briggs said: “A perfect storm is emerging. Gender-neutral pricing and changes to life company taxation will lead to prices going up but only when they come into force. Pricing ought to stay sensible next year.”


Sketchy applications hold up authorisation, says FSA

The FSA has blamed delays in its authorisation process for new lenders on the fact that many applications are incomplete. At the Mortgage Business Expo, FSA director of conduct policy Sheila Nicoll said she is aware there have been comments about the regulator making it too difficult for new lenders to enter the market, particularly […]


Tyrie wants more detail on impact of ‘Robin Hood’ tax

Treasury select committee chair Andrew Tyrie has written to the Chancellor for further information on the impact the proposed financial transaction tax would have on UK tax revenues. The European Commission’s proposal, announced in September, would see a 0.1 per cent charge on stock and bond trading and 0.01 per cent on derivatives contracts. The […]

Regulator to reassess legacy terms for non-advised business after RDR

The regulator says it will revisit the issue of whether non-advised business should continue to pay legacy commission if problems emerge as a result of the retail distribution review. In its consultation paper on the treatment of legacy assets, published last week, the FSA stated legacy commission where changes are made to existing products after […]


News and expert analysis straight to your inbox

Sign up


There is one comment at the moment, we would love to hear your opinion too.

  1. Regulatory capital held against term assurance is likely to *reduce* as a result of Solvency 2, enabling term life to be priced off (generally lower) economic captial and reducing prices other things being equal.

    The other effects (tax, gender neutral pricing) will indeed tend to push prices 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