View more on these topics

‘UK facing protection crisis’

Consumer advocate Mick McAteer fears the UK could be thrust into a protection crisis on a similar scale to the pension crisis in three to four years.

He claims the protection gap, estimated at £2.3trn by Swiss Re, could widen because the retail distribution review excludes the protection market.

He says the FSA must proactively engineer a market distribution structure to meet the challenge of closing the protection gap and is concerned that, by excluding protection, the RDR could prove a missed opportunity.

McAteer says: “In about three or four years time, I think we will be talking about a protection crisis like we are talking about a pension crisis. The FSA must create an effective, coherent regulatory regime and cannot ignore the Icob review.”

Association of British Insurers’ first-half sales figures show protection sales are at a standstill and providers such as Standard Life and Prudential have seen sales halve in the past year.

Le Beau Visage protection consultant Peter Le Beau says: “Sales have dropped significantly this year and I think it is down to the application process taking so long. Protection’s link to the mortgage market, which it has always relied on, has been severed so it is not unreasonable Mick saying a crisis is on the horizon.”


Axa takes over ICAS International

Axa UK has bought ICAS International Holdings, a global provider of employee support and well-being services.

Skipton Building Society launches two new capped rate mortgages

Skipton Building Society has launched two new capped rate mortgages.The new three and five-year base rate tracker capped mortgages are capped at 6.44 per cent and 6.49 per cent respectively.Head of lending Colin Dale says: “Our two new base rate tracker capped mortgages have two clear benefits – they give borrowers the confidence in knowing […]

Outcry as FSA fights to keep Lautro 12 secret

Advisers have slammed the FSA’s decision to appeal against the Information Commissioner’s ruling to name the Lautro 12.The commissioner last month upheld a freedom of information request to name the 12 firms that mispriced Lautro projection rates, leading to unrealistically high maturity figures between 1988 and 1994.But FSA spokesman Robin Gordon-Walker says: “We have now […]


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