Aegon UK

EYE-CATCHING

Insurance products that are marketed and sold through advisers need to undergo radical reform to ensure providers stay competitive in a post commission world, the CEO Aegon has warned.

Aegon UK has launched a simple life protection product providing up to £500,000 worth of cover to advised clients aged between 18 and 49.

Provider Aegon UK has hired John Wilkinson, previously head of protection and investments at Nationwide Building Society, as protection director.

Aegon has reported new life sales rose to £758m in 2012, up from £738m the year before.

Combined second-quarter earnings across Aegon's distribution businesses - which include national IFAs Positive Solutions and Origen - were nil, the insurer has reported.

Aegon UK made a loss before tax of £22m in the fourth quarter of 2011, dragged down by further redress payments following administrative problems at Scottish Equitable and a slump in life and pensions sales.

Not only will the needs of each and every client who needs a protection policy differ, but advisers also have to factor in the different underwriting processes of providers...

Aegon is to close its UK-based tied advisory service Aegon Direct as it progresses with a restructure designed to cut costs across the group by 25% by the end of the year.

Riots in London and elsewhere may have dominated this week's national news agenda, but, in financial services at least, there was plenty else going on…