View more on these topics

Defaqto says simplified CI would boost take-up

Insurers should introduce a simplified critical illness product to help close the protection gap, says Defaqto head of life and protection Nick Telfer.

He has put forward suggestions for a plan that covers only cancer, heart attack, stroke and multiple sclerosis because these account for the vast majority of claims paid.

He says such a plan would be easier for consumers and advisers to understand than existing products because awareness of these conditions is high.

Telfer says: “Statistics show the vast majority of claims are paid out on these four conditions and they are also the conditions people are most worried about. Some products have illnesses which I doubt have ever been claimed for and have clearly been added as a marketing gimmick.”

He believes limiting the conditions covered would also speed up the application process because underwriting would be easier. This could also reduce premiums slightly.

A recent study by Swiss Re found that protection sales through mortgage brokers fell by 10 per cent in 2006.

Telfer says: “This would be simpler to sell, simpler to market and marginally cheaper. Mortgage advisers perhaps do not go to the same level of detail as protection specialist IFAs so a simpler product fits with that.”

Royal Liver technical manager protection Mark Davies says: “A product which covered the core conditions would not save much time on underwriting because the core conditions cover most claims anyway and the vast majority of claims are within those conditions. I would not expect to see any significant savings to a customer’s premiums.”

Recommended

Fast food

Commodities and property have been in the news in recent days, perhaps as a consequence of investors looking for an asset class unlikely to be sullied by the sub-prime meltdown. Both these potential homes for what appears to be a never-ending tide of liquidity have not been without their problems, however.

PFS and IFP in clash over qualifications

The Personal Finance Society has warned the FSA that it must not equate its chartered financial planner qualification with the Institute of Financial Planning’s CFP when awarding professional status under the retail distribution review.PFS chief executive Tim Eadon says he is concerned that the RDR mentions the two qualifications in “the same breath”, saying “the […]

All change

Rumours are hotting up as to who will replace Stephen Leaman at Openwork, with several names in the running.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com