View more on these topics

IP business increases 13% but IFA sales dip by 5%

Income protection sales increased by 13.5 per cent in 2008, a report by Swiss Re has revealed.

In its annual term and health watch report on the UK protection market, Swiss Re found the number of IP policies sold last year increased by 13.5 per cent to 126,815 from 111,780 in 2007. But polices sold by IFAs dipped by 5 per cent from 61,455 to 58,350. New whole life business also increased by 28.8 per cent from 219,362 policies in 2007 to 282,438 policies in 2008, making it the highest level since 2000.

However, new term assurance sales, including accelerated and critical-illness cover, dipped by 6.1 per cent from 1,541,930 to 1,447,895 policies.

Individual CI sales fell by 4.7 per cent from 536,143 in 2007 to 511,045 in 2008. But the number of CI plans sold through an IFA increased by 2.5 per cent from 237,345 in 2007 to 243,384 in 2008.

Swiss Re life and health technical manager Ron Wheatcroft says despite the increases, the £2.3trn protection gap still stands. He says: “Various industry initiatives are now, at last, beginning to get off the ground but to improve consumer understanding of our services and products, these initiatives need to pull in the same direction.”

Master Adviser IFA Roy McLoughlin says: “The increase in IP is incredibly positive and I would imagine it is related to increased awareness among advisers. The 4.7 per cent drop in CI sales might have something to do with cost and the fact that advisers realise that, out of the two products, IP is arguably the more important product for clients.”


Flexibility factor

In an article entitled, Move to phone support to cut distribution costs, it was suggested that Axa Wint-erthur is considering downscaling face-to-face support for advisers in favour of increased telephone support. Axa Winterthur has built its business around a consultative approach to dist-ribution, supporting advi-sers with our team of prof-essional business develop-ment managers and a […]

Back to Africa

Specialist funds have drifted in and out of favour in recent years. Right now, the IMA’s statistics would show them out of favour, at least compared with the larger sectors such as corporate bonds and equity income.


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