View more on these topics

Mortgage-related sales bring protection boom

Sales of income protection cover have reached an all-time high with almost 180,000 new policies bought last year.

The bumper sales figures mean 10 per cent of the working population now have some form of income protection.

Figures from GE Frankona Re show sales rose by 6,000 policies from 174,000 in 1999. IFAs accounted for 42 per cent of sales, up from 40 per cent in 1999. Bancassurers were responsible for for 30 per cent and direct salesforces 17 per cent.

Sales of budget plans rose by 19 per cent to 28,000 policies from 23,500 in 1999. The reinsurer claims much of this growth is the result of mortgage-related sales.

Standard plans remained steady at around 150,000 sales for the third year running.

Frankona found the average standard benefit is £10,477 a year and the average standard premium is £351 a year. This compares with an average budget benefit of £4,683 and premium of £160 a year.

Marketing analyst Jennifer Tingley says: “The increase in the number of budget policies is particularly encouraging. We expect more providers to be launching products which offer cheaper cover by matching the amount of benefit to an item of expenditure, such as a mortgage. Consumers are recognising the need to protect their biggest financial commitment against being unable to work as a result of illness or injury.”


Zurich cuts 550 jobs to save £65m

Zurich Financial Services is axing 550 jobs, including many senior management roles, to save 15 per cent on its UK operating costs.There will be 170 redundancies in the Swindon and Cheltenham offices after redeployment opportunities and restricted future recruitment.Zurich aims to achieve operating savings in the UK of £65m by 2002. The savings will come […]

F&C Ventures bought out by management

Foreign & Colonial&#39s private equity arm F&C Ventures has been bought by its management for an undisclosed fee.The operation, which has funds under management of about £500m, will be renamed Graphite Capital.The buyout follows Hypover- einsbank&#39s sale of its 90 per cent stake in Foreign & Colonial earlier this year.The firm manages six funds, of […]

Richard Leeson

You might say Government financial services legislation in the recent past has not exactly done the IFA community any favours. For example, on the personal investment front, a couple of years ago we witnessed the replacement of Peps with Isas. The fact remains that the structure of most Isas certainly leaves little scope for IFAs […]

SG Asset Management – Corporate Bond Fund

Wednesday, 25 April 2001.Type: Unit trust.Aim: Income by investing in corporate bonds.Minimum investment: Lump sum £1,000, monthly £50.Investment split: High-grade sterling-denominated corporate bonds 80 per cent, fund manager&#39s discretion 20 per cent.Yield: 5.5 per cent.Isa link: Yes.Pep transfers: Yes.Charges: Initial 3.5 per cent, annual 1.25 per cent.Commission: Initial 3 per cent, renewal 0.5 per cent […]

The FCA’s five fixes for retirement information

The Financial Conduct Authority (FCA) has started to change the way that people will be told about their pension options. In a recent market study paper, they lay out their final proposals on the information that should be delivered to people approaching retirement and how it should look and feel. During 2015, there will be […]


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