PruProtect has come under fire from advisers after approaching IFAs’ clients directly to discuss linking their protection policies to inflation.
Plans can be indexed to the retail prices index measure of inflation to protect the value of the sum assured.
PruProtect says the aim is to raise awareness about the benefits of indexation and insists advisers were made aware of the plans before PruProtect began contacting customers in March.
The insurer says emails were sent to advisers and networks in December and then again in January, with IFAs given the opportunity to opt out of the service. PruProtect business account managers were also made aware of the move.
Axxis Financial Planning director Owen Wintersgill says he is not aware of receiving an email about PruProtect’s plans.
He says: “It is not for the provider to address the needs of the client. The IFA is the one who knows the clients and, as such, the provider should go through the IFA. Contacting clients about indexation is a clumsy way of addressing their protection needs.”
P3 Wealth Management managing director Frank O’Donnell says: “There is no way that PruProtect should be marketing direct to our clients. The bottom line is that this is for PruProtect’s benefit.”
PruProtect head of account development Phil Jeynes (pictured) says: “This is not us trying to sell directly to clients or second-guess the advice that was given at point-of-sale. This is a service we are providing to advisers and their clients and was provided on an opt-out basis.”