Aegon Group, the £175bn listed Dutch insurer, has dropped a big hint that its pricing on protection ...
Aegon Group, the £175bn listed Dutch insurer, has dropped a big hint that its pricing on protection products will be determined by the yield they might bring for Aegon shareholders, regardless of the pricing competitiveness such products might have in the UK market.
Janet Wyles, Aegon UK's Individual Protection unit managing director, says the company's products sold under the Scottish Equitable brand will not be following the lead of competitors, which have cut prices in recent weeks.
And while part of the reason is Aegon does not see short-term price cutting as a way to build up long-term market share in the protection market, Wyles also states that this is being done to protect the profitability of existing products so as not to harm the interests of Aegon shareholders.
"For Scottish Equitable Protect, our medium term goals will be to continue to provide an attractive and relevant offering to IFAs and their clients, while maintaining value to shareholders," she says.
Wyles also warns IFAs against going for the cheapest option as this will often not reflect the level of innovation or the quality of administration of the product provider.
"Short-term price cuts are a competitive illusion. It's simply not the answer for long term success in the protection market. This may achieve a temporary boost to market share - but is not likely to be a successful means of building long term market growth," Wyles says.
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