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IFAs outraged as Pru supersedes CI commitment

Just seven days before last week&#39s controversial decision by the Prudential to raise its critical-illness rates for new and pipeline business, it pledged to meet previous premium commitments on applications.

But this promise, made on April 7, has been superseded by its latest decision which applies across the board to all pipeline business regardless of when it was written.

IFAs claim this latest bombshell will affect the lion&#39s share of applications as, of the start of April, the Pru was still struggling to process policies from the beginning of February.

The revelation has sparked outrage among IFAs who predict the move could herald Pru&#39s downfall as an IFA provider.

In a letter, the Prudential told an IFA that although it was raising CI rates from the next day, it would honour all old rates on applications received before April 7.

This is in marked contrast to last week&#39s announcement which affects both future business and the Pru&#39s substantial pipeline. Many IFAs have vowed never to place business with the Pru again.

National broker Lifesearch, which last week said it is looking at the possibility of a class action lawsuit, says Inter-Alliance and Life Policies Direct have joined it in its efforts.

Lifesearch spokesman Kevin Carr says: “The Pru deliberately led us down the garden path only a week before last week&#39s fateful decision and then completely changed their minds.”

Prudential spokesman Darragh Leeson says: “Last week&#39s announcement supersedes all other previous announcements. The letter from the beginning of April is no longer applicable.”

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