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Liverpool Victoria goes direct for PTA business

Liverpool Victoria is piloting a scheme to sell its pension term assurance products to existing customers via dir- ect mail.

The mutual will offer PTA to 45,000 of its existing non-IFA customers in mailouts starting on September 23.

Customers will be able to respond to the mailshots by phone and will be asked whether they want to buy a policy on an execution-only basis or with advice.

If the pilot scheme proves successful, LivVic will ext- end the direct-mail service to its other non-IFA existing customers.

But Lifesearch head of protection strategy Kevin Carr says this is a contradictory move for LivVic and he is concerned that the literature will steer customers away from advice and towards buying on an execution-only basis.

LivVic recently announced it was adding Red Arc’s services to its critical-illness policies and Carr thinks that this is at odds with the firm roll-ing out a direct PTA offering.

Aegon Scottish Equitable head of marketing protection Rod McKie says: “We have a strong preference for advice because it is a more complicated product than other life policies.”

Liverpool Victoria director of intermediary sales Stuart Tragheim says: “We are probably one of the bigg- est providers that use direct mail in the UK so it is not new for us to be doing this. We will deal with customers in whatever way they choose to be dealt with.”

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