Pioneer has welcomed new incapacity benefit rules outlined by the department of work and pensions on Tuesday claiming anything that highlights the issue of incapacity is positive for the industry.
The rules plan to change the way people qualify for benefits, focussing on what work claimants are fit to do rather than what they cannot do, in a bid to cut the number of annual claimants by 20,000.
Pioneer chief executive Andy Chapman says: “It is widely acknowledged that one of the major contributors to disappointing income protection sales over recent years has been a lack of consumer awareness. Any issue which raises doubt and importantly encourages the consumer to plan and protect their long-term financial security can only be a good thing. As an industry we must be in a position to exploit such opportunities.”
The DWP has come under fire over the new rules which will be introduced next October. Some have branded them irrelevant because they will only apply to new claimants and not the 2.7 million people currently receiving benefits.