Our protection detective gives his verdicts on five key developments in the industry this month.
Waiting for the ‘G' day?
There's a lot of noise building up about ‘G-day' when Gender neutral pricing kicks in. I've read a few blogs, however, suggesting some people should wait until after ‘G-day' before buying cover, which is frankly nonsense. Yes - while the cost of life cover is likely to increase for women, Income Protection rates could fall.
But this is too simplistic. First, it is not just gender that is the issue. There are other changes impacting life offices which could also push premiums up, and more importantly those who need protection should never wait to buy for the simple reason that their circumstances could change. Even if rates for female IP do fall in January - those who have already bought could switch to save money. VERDICT: Back to the lab
How do I know you'll pay my claim?
The publication of paid claim statistics has been called for, championed and supported by a range of intermediaries and media publications in order to improve consumer trust. But if we approached a member of the public and asked if they trusted the insurance industry, many might say they try to wriggle out of paying claims.
Our protection detective gives his verdicts on five developments in protection this month
Disclosing paid claims percentages is a relatively new thing but it is now becoming de rigeur for companies to disclose their percentage of Critical Illness claims - and the figures have crept up year on year. This is a triumph for consumerism, but it is also a triumph for common sense. VERDICT: Promising lead
One in five PPI complaints buying IP instead
At a recent meeting of the IP Task Force I learned of a broker who converts one in five ‘Have I been mis-sold PPI' calls into genuine Income Protection sales, which is absolutely excellent news.
The IP industry has long suffered for the wrong doings of the PPI market but maybe there is some light at the end of the tunnel. VERDICT: Promising lead
Independent protection training coming your way
The PFS and Protection Review will be continuing their independent IFA protection training around the country, taking in Leeds, Bournemouth, Exeter, London and Bristol. The in-depth sessions, which are hosted by current and ex-advisers, include market information and technical product details, as well as sales tips. VERDICT: Promising lead
Hanging on the telephone?
There was a school of thought not so long ago which said the growth of email was killing the art of conversation. With the creation of text messages, smartphones and social media, the point has perhaps never been more true. However, have things gone so far that the reverse could now be true; that the good old-fashioned telephone conversation is killing modern communication?
Many people continue to communicate during meetings via whatever mobile gadget they choose to use. If you're in a client meeting, on a conference call, on the phone or in cab you can still text/email/tweet. But can you talk? Certainly not in a meeting or while already on call. Besides, a phone call needs good service throughout, where as a text/email only needs one bar for a second or two. The same goes for voice messages (especially if it's an unknown number) you may not know what was said (or even who it was) for several hours, where as an email, text or tweet could've been resolved in minutes. VERDICT: Promising lead
Kevin Carr is CEO of The Protection Review and managing director of Kevin Carr Consulting
EIS and Seed EIS sectors
'Truly making a difference'
Avoidance, evasion and non-compliance
From 6 April 2019