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's 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.”