View more on these topics

Protection IFAs voice fears over CI developments

Leading protection IFAs met with reinsurer Munich Re last week to discuss the future of critical-illness cover and the need for co-ordination in developing new products.

Life Policies Direct director Jason King and Lifesearch senior technical adviser Kevin Carr met with Munich Re&#39s head of marketing Will Adler to share ideas on where the product should go.

King and Carr believe the CI concept should be “fixed” rather than building a new product based on income protection. They say such a development would look like the menu-based products that have proved unpopular with consumers.

Both also believe that the ABI needs to encourage innovation and play a role in creating co-ordination between product providers and IFAs.

Carr is concerned an that income protection-based product will not fit with the mortgage market and says the ABI needs to review its statement of best practice constantly as the market is moving quickly.

King says: “Combining income protection with lump-sum critical illness is not the way forward. We need to build from critical illness as there is the momentum behind it.”

Adler says: “We have not ruled any solutions in or out, except that the existing CI and IP products do not work. We also have one other message and that is a review of the ABI statement of best practice is urgently needed to enable the industry to move forward.”


A consumer&#39s view

The wise men of the Treasury select committee are to conduct an inquiry into how to restore confidence in long-term savings and whether the Association of British Insurers&#39 claim of a £27bn savings gap stands up to scrutiny. The obvious answer to restoring confidence is to have a different approach to regulation because, to date, […]

Providers face fines over baby bonds

Providers could be fined for mismanaging child trust funds. A draft of the Child Trust Fund Bill, included in the Queen&#39s Speech, says a provider which “fraudulently or negligently makes an incorrect statement or declaration in connection with a claim” under sections relating to Inland Revenue contributions and income and capital gains tax could face […]

Another regulator for pension rescue

A new pension regulator will form part of the pension protection scheme aimed at covering company schemes that have folded. The Queen&#39s Speech last week set out plans to step up efforts to educate the public on pensions, including a website giving consumers access to details of their likely state pension entitlement. From 2005, employers […]

Pension reforms need to take heed of history lesson

People will still be retiring with insufficient pensions despite reforms to the pension system because the changes ignore people who do not have a full employment history, says the Pensions Policy Institute. The PPI report says increased redistribution through the state second pension and the rapid expansion of the pension credit will not fully compensate […]

Health - thumbnail

Fit for Work: guidance for employers published

On Friday, the Department for Work and Pensions published its guidance for employers on using the new Fit for Work (FfW) service to help ill employees return to the workplace. It also includes more details on the tax exemption for medical interventions that commenced on 1 January 2015.


News and expert analysis straight to your inbox

Sign up


    Leave a comment