View more on these topics

‘Exclusions pose danger for IFAs’

FSA called on to compel insurance policies to list all exclusions up-front

The FSA is inadvertently setting a trap for IFAs by encouraging insurers not to list all exclusions up front in policy documentation, says Scottish Widows protection marketing manager Nick Kirwan.

He says the FSA is failing to give proper guidance on what are deemed common-sense exclusions and allowing providers to determine their own wording.

The FSA issued guidance notes in December on key features documents for general insurance products, aimed at reducing small print. It said exclusions that were deemed as common sense did not need to be included but Kirwan points out that the regulator failed to give examples.

The regulator says it is intermediaries’ responsibility to mention any common-sense exclusions that do not normally have to be listed if they might be applicable to a particular client.

But Kirwan says this requires detailed knowledge of policy wordings from every insurance company, presenting a danger for IFAs. He says insurers should have to highlight exclusions up front.

Kirwan says: “This is a real trap for intermediaries. If they are using the key features document as an aide memoire and it fails to list certain exclusions deeming them common sense, it could come back to bite them.”

Jelf Private Clients director Charles Bailey says: “Because critical-illness insurance is so complicated and specific, it is important to have all the exclusions listed.”

FSA spokesman Robin Gordon-Walker says: “Our imminent thematic review of critical-illness insurance will look at exclusions but we will wait until those results come out before we comment on what the outcome might be.”


‘Introduction of Hips is far from certain’

The implementation of home information packs is delicately poised and it is far from certain that they will be introduced as planned, according to the CML. Speaking at the BSA conference, deputy director general Peter Williams raised the spectre of the Government’s recent Sipp U-turn to warn delegates that Hip plans are still subject to […]

N&P chief Bullock is new BSA chairman

Norwich and Peterborough Building Society chief executive Matthew Bullock has been elected chairman of the Building Societies Association. He replaces Nationwide Building Society chief executive Philip Williamson, who has held the post for the past year. Before becoming chief executive of N&P in 1999, Bullock had a broad banking career. Yorkshire Building Society chief executive […]


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