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Public fail to realise the risk of disability

Consumer education is key to narrowing the protection gap in the UK, according to The Protection Review 2004 published last week.

Le Beau Visage director Peter Le Beau expresses concerns over income protection policies and says UK consumers do not have a realistic view of disability risk.

He says: “If the message about the relative risk of disability and death issues has not got through now, one doubts that it ever will.”

Opinions on how to bridge the estimated £130bn IP gap are divided, according to the report, ranging from making uniform definitions more similar to those agreed on for critical-illness cover to lower deferments.

The report says the intermediary market is desensitised to the product and believes it is unable to revise its opinion significantly to bring about a major change in sales of the product.

Le Beau says he is also pessimistic on the future of long-term care insurance, which is described as “the product that never happened.”

Writing in the report, ABI chairman of LTC committee Peter Barnett says the Government has kicked LTC into the long grass and would like to leave it there.

The report concludes that LTC needs will remain but the rising costs of advice and lack of consumer education will do little to help. Critical-illness cover and private medical insurance have performed well although innovation is needed to continue to grow. The report asks product providers to offer efficient service to advisers and consumers to instil confidence in the market.

Protection Review 2004 co-editor Andy Couchman says: “We need to get the message out to the public. The industry is not appearing to talk with one voice.”

The MTA list

Life company networks that have received their MTA letters

Legal & General

Life company networks that have not yet received their MTA letters Axa Assurance, Friends Mortgage World, MGM Assurance, Norwich Union, Zurich.

IFA networks that have received their MTA letters

Bankhall, Banking-Insurance Services, Burns Anderson, Berkeley Wodehouse Associates, Enable, Interdependence and M&E Networks, Lighthouse IFA, Mint, Personal Touch Insurance, Sage Financial, Sesame IFA networks that have not yet

received their MTA letters

Berkeley Independent Advisors, IN Partnership, Inter-Alliance, Millfield, Virtual Net (Europe), Whitechurch.

Mortgage networks that have rec-eived their MTA letters

BDS Mortgage Group, Manchester Building Society Mortgage Brokering Services, Members Mortgages, Mortgage Intelligence, Pink Home Loans, Premier Mortgage Management, Squirrel, Trinion.

Mortgage networks that have not received their MTA letters

All Types of Mortgages, Best Advice Mortgage Network, Blue Pearl UK, Complete Mortgage Network, Custom Made, Domain, Ethical Mortgage Solutions, First Home Loans, Genesis, Guaranteed Home Loans, Home Loan Partnership, LifeQuote, Lime, Mortgage Marketing Centre, Mortgage Next, Mortgage One, Mortgage Support Network, Mortgage Times, Network Data, Network One, Next Generation, One2One Mortgages, Optoma Interpartners, Paymentshield, Professional Mortgage Network, Professional Mortgage Partnership Network, The Mortgage Operation, The Mortgage Union, Trustguard Homeloans.


Scottish Equitable International -Flexible Investment Plan

Type: Unit-linked bond Aim: Growth by investing in a range of 44 unit-linked funds Minimum investment: Lump sum £15,000, monthly £500, annually £5,000 Fund links: Choice of 24 internally managed funds and 20 externally managed funds from Baillie Gifford, DWS, First State, Invesco Perpetual Lazard, Merrill Lynch Newton, Northern Trust SocGen and UBS Allocation rates: […]

IFA calls on advisers to join captive PI scheme

IFA CFS Independent is setting up a captive professional indemnity insurance scheme and is looking for other IFAs to come on board. Managing director Andy Harwood envisages a Guernsey-based scheme with around 50 IFAs all paying an average premium of £15,000, giving a total pot of £750,000. If, as Harwood anticipates, cover of £1.5m is […]

Cavanagh Group gets £1.6m cash injection from Skandia and Friends after £1m loss

Skandia and Friends Provident are injecting a total of £1.65m into Cavanagh Group as the listed IFA strives for profitability after a £1m loss for the six months to April 30. Friends is paying £1m and Skandia the balance for newly-issued shares in the IFA which, despite boosting turnover from £2.4m to £4.9m during the […]

Buy to let service offers investors discount on new homes is launching a new homes investor service which offers buy to let investors discounts of up to 15 per cent on new homes schemes across the UK. The Smart Investor Club offers priority notification of investment opportunities ahead of general release to other buyers, as well as providing investors with an insight into the […]


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