RDR and economy threaten critical illness products-Defaqto

According to Defaqto’s Critical Illness Report 2008, product innovation is key if these products are to flourish in the future. However, recent RDR proposals, which downgraded protection products to the sales category where non or little ‘advice’ is given, may discourage more complex propositions. Another major threat is the economic downturn as many critical illness sales are linked to mortgage sales which are in sharp decline. The report also highlights a crisis of confidence in the protection industry and critical illness in particular. “Bad publicity over claims and alleged ...