View more on these topics

Protection sector is hit by plunges in CI and IP sales

The protection market has seen a significant drop in individual critical-illness cover and income protection sales of 8.7 per cent and 11.8 per cent respectively last year, says the Swiss Re protection market report.

The report, Term & Health Watch, cites several reasons for the fall in sales. A major factor is the hardening of reinsurance rates and price increases due to the reduction in long-term guarantees.

It also points to medical advances, leading to earlier diagnoses.

The survey points out that CI still overshadows IP sales and it identifies an income protection gap in annual benefits of £130bn.

Low IP sales, it says, are due to lack of consumer awareness about the need for this type of cover. It concludes: “It is a sad indictment of our industry that despite the obvious place for IP in protecting individuals&#39 basic income, product providers and intermediaries have manifestly sidestepped the real issue in favour of the simpler appeal of CI.”

But Lifesearch PR manager Kevin Carr says the remark is flawed although he concedes that CI is the simpler sales option.

He says: “There are a lot of mortgage lenders and exclusion-only people that do not offer income protection. The distribution of critical-illness cover goes far wider. What reinsurers need to do is work on an income protection product that is attractive to the client and not work on profit margins.”

Swiss Re global communications manager Tim Dickenson says: “Market commentators have generally predicted a fall in the number of intermediaries advising on protection business from 2005 onwards. This presents a risk that, without face-to-face advice, consumers will not purchase cover.”


Invesco VCT targets Aim-listed firms

Invesco Perpetual is launching a £40m venture capital trust investing in AIM-listed companies in a bid to exploit the Government&#39s latest tax breaks. The VCT, sponsored by Noble & Company, will be managed by a team headed by Andy Crossley and Richard Smith. It is expected to open in mid-June at an offer price of […]

Winterthur enters into partnership with Capita

Winterthur Life UK has entered into a strategic partnership with The Capita Group which will see the support company acquire the share capital of Personal Pension Management Limited for an undisclosed sum.In addition to buying Winterthur&#39s subsidiary, Capita will also provide the life office with Sipp administration services, allowing Winterthur to focus on product design […]

Woolwich changes gear

Woolwich Plan Managers has brought out the Woolwich Accelerated Growth Plan, a capital-protected bond linked to the FTSE 100 index for six years. The bond provides a full capital return unless the index falls by more than 50 per cent during the term and fails to recover to at least its starting value. If this […]

Wesleyan appoints new managing director

Wesleyan Assurance Society has appointed Craig Errington as managing director designate. This is in preparation for the retirement of Frank Brooks, current managing director, in April 2005. Errington is currently responsible for sales, marketing and operations. Wesleyan is now looking for a new sales director, who would report to Errington. Brooks says: “Craig has been […]

Is this the endgame for the current mergers & acquisitions boom?

Last year, worldwide mergers and acquisitions (M&A) rose to an unprecedented $4.7tn, according to Thomson Reuters, a 41 per cent increase over 2014. Anthony Forcione, senior equity analyst at Loomis Sayles, an affiliate of Natixis Global Asset Management, looks at what’s been driving this particular wave of mergers. Click here to view full article: Loomis-Sayles


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