Skandia looks at return to critical illness cover market

Skandia is considering re-entering the critical-illness insurance market almost 18 months after pulling out of the sector.

The company, which offers a life product called Skandia Protect, says it is looking at launching a new life with cri- tical-illness bolt-on product in the next 12 months.

In July 2010, Skandia said it was pulling its CI products from September of that year.

Marketing director Nick Dixon says: “We look at what advisers and their clients want and launching a life and critical-illness product is one of the things on the radar. It is not something that is imminent or definite but it is on a list of several other things that are being given equal consideration.”

Earlier this month, Scottish Widows revealed it is planning to re-enter the IFA protection sector with a life and critical-illness plan.

Highclere Financial Services partner Alan Lakey says: “If you go back 10 years, Skandia was pretty much the market leader in critical illness so I think it has got to come back with something that is either the best in its class or unique compared with its rivals.”

Master Advisers senior partner Roy McLoughlin says: “There are not enough companies in the critical-illness sector, so healthy competition is to be encouraged.”