View more on these topics

Advisers wary on L&G direct protection service


Advisers say a new protection comparison website run by Legal & General runs the risk of encouraging consumers to buy on price without advice.

Comparecover sells life insurance directly to consumers from insurers including Zurich, Aviva, L&G and Beagle Street.

The website gets a commission for every policy sold, which is then shared with the customer, effectively lowering the price of the product.

Quotes are non-advised, though customers can choose to get advice from Comparecover partner ActiveQuote.

Highclere Financial Services partner Alan Lakey says there is a risk consumers will buy purely based on price, not suitability.

He says: “With any specialist adviser worth his salt consumers will get a breadth of advice beyond the lowest price, however well-meaning these websites are.

“So the grave danger is they don’t get the breadth of cover they should, they don’t get all the options of things like fracture cover and non-permanent disability cover, they don’t get buyback of cover, and that’s the risk.”

Plan Money director Peter Chadborn says: “The first thing to say is advice is better than non-advised. However, for the large and increasing proportion of the population who choose not to go and get advice, it’s better they do this than do nothing.”

L&G was unavailable for comment.



Ian McKenna: How to fix the broken protection industry

At last month’s Protection Review conference, chief executive Kevin Carr identified just 3 per cent of mortgage advisers think the protection industry is working well for them. This is a damning indictment of the current state of the life assurance industry. A small number of highly professional specialist protection advisers, who understand their products inside […]


Tom Baigrie: A radical idea to guarantee protection payouts

Having written my last column from an Iron Maiden gig, this one comes from Lord’s, happily only a few hundred yards from where the Protection Review Conference has just finished. It is a tough life. Before dashing across to watch a brave Misbah-ul-Haq defying a rampant England pace attack, I listened to lots of opinions […]

China’s economic bounce may already be over

By Mike Riddell (17 May 2016) Most people would explain the rally in global risky assets since mid-February as being primarily down to the spectacular volte-face from the Federal Reserve, where Janet Yellen (and others) dramatically toned down their narrative that the Fed would be hiking rates as many as four times in 2016. This explanation […]

William Littlewood “betting that QE won’t work”

Journalist Alexis Xydias interviews Artemis manager William Littlewood about his views on bond, equity and currency markets and the impact of a Greek exit from the EU. With bond yields at “ludicrous” levels, William believes a tipping point for bond markets is sure to come. As a result, his Strategic Assets Fund holds government bond shorts to the tune of 100 per […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment