View more on these topics

Legal plan for payouts despite non-disclosure

Law Commission proposals would introduce non-contestability after three years

Proposals from the Law Commission to introduce a non-contestability period on insurance contracts could result in increased non-disclosure on application forms for life and critical-illness cover.

Under the proposals, protection providers will be forced to pay out on all claims on policies held for three years or more, assuming the claim is non-fraudulent. Even if non-disclosure is proven, claims could only be contested on these grounds within the first three years of the product.

Aegon Scottish Equitable head of underwriting Matt Rann says he is not in favour of the proposals because it could encourage non-disclosure and he believes it goes against contract principles of “utmost good faith”.

Rann says: “Are we encouraging people to take a punt on survival? The consumer could take a bet on living three years and decide not to disclose to avoid paying higher premiums. This would drive up premiums. It will change the industry radically if it is introduced.”

Scottish Widows protection marketing manager Nick Kirwan says the proposals have the potential to change the shape of the protection market. He says advisers will have to think carefully before rebroking policies and they will be less likely to if a non-contestability period is introduced.

Kirwan says: “I suspect this means the balance is tipping in favour of the consumer and I think that is right. It will give a massive injection of consumer confidence although we may be paying more claims and premiums may rise.”


Fidelity seeks distributor status for funds

Fidelity is looking to secure UK distributor status for its 12 Luxemburg-listed multi-manager funds. The three multi-asset portfolios and nine specialist funds focusing on a single region or sector are registered for sale across Europe, including the UK. The firm says they will appeal only to UK investors who gain access through offshore bonds but […]

Is property starting to get shaky?

Property has become the increasingly favoured asset class for many investors over the last few years and money has been pouring into UK property funds.

Interest rates held at 4.75 per cent

The Bank of England has decided to hold interest rates at 4.75 per cent for the second month in a row.It follows the decision in August to raise the base rate by 0.25 per cent from the 4.5 per cent figure which had stood for a year.Abbey chief economist Barry Naisbitt says: “It is widely […]

Out of context

“I might not sound upmarket but I do have a silk hanky.”Positive Solutions executive chairman David Harrison“I am rather nervous. Last time I addressed a group of schoolgirls, I asked one of them what her plans were after she left school. She told me: ‘I was planning to go home until you arrived, big boy’.”Former […]

Powerful estate planning tools ignored or forgotten by wealthy Brits

Canada Life IHT Survey 2016 Only a quarter of wealthy Brits have sought professional estate planning advice to ensure their families don’t pay more tax than required More than a quarter don’t even have a will and just one in five have gifted money Many say they do not need these tools but families would […]


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