Unum has criticised Defaqto claiming its recent report on income protection skips over the hard work providers have been putting in to improve the product and boost sales.
In the report, Income Protection Insurance 2007 – A time for action not words, Defaqto urges insurers to take definite action to innovate and simplify their products to widen the product’s appeal.
But Unum corporate services director Joanne Hindle says the report does not adequately reflect the progress the income protection industry has made and adds that radical change is unnecessary.
She says revised application processes, online submission facilities and tele-underwriting have cut processing times significantly and rates are extremely competitive.
She says: “There is a burgeoning protection gap and radical change in an industry that has already advanced so far, is to a large extent unnecessary and may simply confuse users and lead to further uncertainty.
“What we recommend is clear IFA and consumer education, so businesses and consumers can understand the benefits of IP and make an informed decision based on this information.”