Defaqto sets out proposals to revitalise IP

The financial research company warns sales of income protection (IP) are suffering from “mutual distrust” – consumers do not trust insurers to pay out and underwriters believe consumers prefer to be ill rather than work. Its latest report – Income Protection Insurance – October 2006 – includes six proposals to revive the market: Deferred periods should be defined in months because the majority of the population are remunerated monthly. Currently some providers use weeks and some use months, which brings an unnecessary inconsistency to the market; Maximum benefit percentages shoul...