Capital strength is vital in protection and should determine which insurer advisers choose, argues Stuart Lawson. Yet the market may be heading for a period of instability
Why is a protection insurer like a teabag? Because it's only when they get into hot water that you find out how strong they are. The joke may be stolen but the sentiment is worth considering. For an adviser, placing protection policies is much riskier than most insurance; it relies on the longevity and stability of the insurer. Selecting the wrong one could leave clients with future problems in relation to claims and servicing of their policy. The high-profile issues with Northern Rock in the early part of this year were headline news and the stability of financial institutions is now...
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