Scottish Equitable Protect has angered IFAs by extending its clawback period from two years to four years.
The firm says the changes come into effect from January 10 and affect all policies issued from that date onwards. It says IFAs will get letters about the change this week and believes the notice period of a month is adequate. The move is aimed at bringing the company in line with the rest of the market.
Some intermediaries say the notice period includes Christmas and New Year and leaves ScotEq Protect able to control when it accepts business.
Direct Life & Pensions sales and marketing director Richard Verdin says: “The decent thing from any insurer is to give the terms they ultimately offer, driven by the date on the application form. That way, the consumer and intermediary always know what they are dealing with.”
Alan Steel Asset Management consultant Alan Adam says: “I can understand them doing it but I would not say I agree with it. It is quite busy at this time and it is probably going to sneak in the back door.”
ScotEq Protect spokeswoman Lesley McPherson says: “We estimate around two-thirds of all individual protection business is written on a 48-month earnings period so we are bringing ourselves in line with the rest of the market.”