There has been speculation that the protection market is undergoing a rate war. Although several insurers have denied this claim, the number of rate changes has increased lately. Could this have a negative effect on the industry, and how will intermediaries cope with the increased number of changes?
Market Views Roger Edwards, Bright Grey In 2004, sales of life assurance and critical illness (CI) fell significantly. At the same time, several providers entered or returned to the market, resulting in more companies scrambling for market share in a declining sector. The key short-term tactic for protecting market share is to cut prices and the number of rate reviews happening on a daily basis definitely suggest the industry is in the middle of a price war. Five years ago, most companies could not reprice more than once a year. Now, with industry comparison systems supplying da...
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