View more on these topics

RDR could hinder sales

If protection sales are included in the retail distribution review, it could hinder sales and increase the existing £2.3tn protection gap, warns Swiss Re Life and Health technical manager Ron Wheatcroft.

Wheatcroft, who is principal author of insurance report Term and Health Watch, says the terms of reference included in the RDR were written with investment in mind and protection should not be “lumped” in with it.

He says: “It would be dangerous to apply the methodology and thinking people are using for the RDR on investment products in the protection field. It needs to reflect the reality of the market.”

Wheatcroft is urging the financial sector to look at the impact some of the RDR conclusions may have on the protection business, particularly those firms who advise across different products, and seek clarification around what independent advice means.

He says: “There is this debate about the meaning of independent advice in regulatory terms. At the moment, there are three meanings – one in investment, one in protection and one in mortgages.

“If there is a new definition of advice, perhaps around a fee-based model, then if that is not a model we use in the protection market, we need to think through how that might be impacted.”

Wheatcroft fears that coining a definition on advice could be a step back.

He says: “Advice is advice and the quality of the adviser should be just as good. If we try to hang a definition on advice, we will end up back in the same debate 20 years ago about what advice means.”


Guide cover

Guide: how to… communicate with your pension members

Effective communication of your pension scheme is a large part of getting auto-enrolment right. Delivering the same message to all employees is not necessarily the way to go. To assist you with the communication of your pension scheme, we have provided some key areas to think about, such as:

  • What to consider when segmenting your workforce
  • How to communicate to pension scheme members at the right time in their member lifecycle
  • What topics you should be discussing with your pension members
  • The new pension freedoms and the importance of communicating them


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