View more on these topics

‘We’re all losers in price war’

The protection industry’s focus on price over product features is leading to harsher underwriting, more work for advisers and falling sales, says PruProtect director of protection development Kevin Carr.

Carr is warning that stricter underwriting could mean that more consumers end up buying ill-suited products or stop buying products altogether.

He says: “For IFAs, the more that the market focuses on price, the harder it becomes to recommend more suitable and better value for money products. The best value is not always the cheapest and for life offices it is often a short-term strategy that does not meet long-term consumer needs.”

Legal & General managing director for protection Bernie Hickman says: “It is important to get a balance between the price that you pay and the features within the contract. The danger would be that providers load products with features that are inappropriate and add no value to that customer.”

Lifesearch policy adviser Matt Morris says price is the last resort of the seller when they have nothing else to compete on.

He says: “An obsession on price is bad for the customer in the long run because they are losing out in other areas.”

Master Adviser IFA Roy McLoughlin warns that the industry must avoid getting into a price war. He says: “People that are selling on price alone are naive. It is an ongoing battle but I do not think the price makes as big a difference as people think. It is the quality of the product and the ability to have a hybrid-type approach. That should be the way forward.”


The blame game

If you have ever had the misfortune of watching daytime TV, then you, too, must have found yourself wondering first whether you have not in fact stumbled across hell on earth and second, marvelling at what a litigious country we have become if the volume of no win, no fee ambulance-chasing ads is anything to go by at that time of day.

Yield to reason

In case it passed you by over the summer, the FSA has used one of its snappily titled quarterly consultations to try and make a case for retaining the reduction in yield figure to show consumers how much an investment costs.

History repeating itself

It may seem like Armageddon is here, but it’s a comfort to know that this isn’t the first time that Britain has been disabled by a huge economic shock. We have suffered before, and we have survived.


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