Just Retirement is the latest firm to have announced its foray into the market and is planning to announce its niche protection offerings to consumers in or at retirement age this summer.
Prudential’s former head of proposition and market strategy Paul Cowman has joined the firm as category manager of protection and he will be leading Just Retirement’s move into the protection market.
HSBC and Fortis are two other firms known to be looking at entering the intermediary protection market this year which begs the question, what can they offer that is new and different from the products currently on offer?
Just Retirement is going for the niche offering and has identified a real gap in the protection market by targeting consumers in retirement. This is an interesting development in the market as there are very few products currently available in this area.
With increasing longevity, the retirement and post-retirement market is set to be a growth market and Just Retirement has spotted its potential.
But HSBC and Fortis have yet to define the markets they will be targeting.
Providers have a number of choices of which route to choose. They could go down the price-driven mass market route like Legal & General, set themselves up as specialists in a niche area like Just Retirement or concentrate on offering a completely different type of product like Prudential.
HSBC and Fortis will have to carefully consider which route they choose. Protection providers and advisers already consider the market to be saturated with the mass market, cheaper options but there is always room for innovation.