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CI Expert
CI Expert: Why Does the Protection Gap Still Exist?
Thirty years ago there were 36 insurers offering both life and critical illness cover. While many have since disappeared through consolidation and acquisition, within eight years annual sales of critical illness policies exceeded one million – around double the volume seen in more recent years. So what has gone wrong?
Direct-to-Consumer vs Advised Protection: Why Comparisons Matter
At CIExpert, advisers can compare intermediated protection plans alongside white-label and direct-to-consumer (D2C) versions. Some users question why we include this functionality. The answer is straightforward: many insurer white-label and D2C products differ from those available through advisers, and understanding those distinctions is essential.
The Protection Gap: What the Latest Data Reveals
It's often said that protection insurance has "gone to the dogs". Looking at the data, that observation may be more literal than rhetorical.
Critical Illness: Progress Goes Deeper Than Policy Wording
Many advisers will recognise how far critical illness plans have come since their launch in the 1980s. Conditions covered have expanded, wordings have tightened, and claims processes are far clearer than they once were.
Critical illness cover: What advisers really need to know about additional payment conditions
Advisers are generally confident when it comes to selecting quality critical illness (CI) plans - definitions, incidence rates, and provider claims stats are all familiar territory. But dig into the additional payment conditions, and things get a lot more nuanced.
5 Essential Considerations When Assessing Critical Illness Policies
When advising clients on selecting the ideal critical illness (CI) plan, several factors come into play - cost, quality, claims statistics, and administrative efficiency, among others. Ultimately, however, the true value of a plan is revealed at the point of claim.
The Hidden Risk in Mortgage Advice: Ignoring Protection Reviews
Networks report that just one in four mortgages arranged today are backed by a mortgage protection plan. That figure is worrying enough, but even more concerning is that many mortgage advisers fail to revisit protection needs when clients switch rates - or even when they move home. Most industry commentators agree: this behaviour runs counter to the spirit of Consumer Duty. But beyond regulatory expectations, this is simply a matter of common sense and client care. Here’s why.
NHS Waiting List Cover: An Overlooked But Vital Protection Benefit
There’s a natural tendency for protection advisers to focus on critical illness conditions and the intricacies of claim wordings. After all, the likelihood of a successful claim often defines the perceived value of an insurer’s offering.
Sick Pay or Serious Payout? Rethinking the Battle Between Critical Illness and Income Protection
For over 25 years, the financial advice community has echoed a familiar refrain: Why is critical illness cover (CI) more commonly sold than income protection (IP)? The concern is valid, and the numbers back it up.
Panel Thinking: Reassessing Adviser Restrictions in Light of Consumer Duty
This may raise concerns among colleagues in networks and affinity groups, but it is a discussion that warrants wider industry attention. It also aligns with key themes in the FCA’s recent Market Study (MS24/1.2): namely, the role and impact of insurer panels on consumer outcomes.
Coma Confusion: Why Claims Need a Second Opinion (And So Do You)
A recent Cover article, “Claims and Underwriting: Claiming After an Induced Coma,” shone a spotlight on two fundamental issues in the protection industry - both of which highlight why financial advisers are indispensable.
Balancing Price and Value in Financial Advice
The ongoing tension between price and value often leaves consumers worse off, even when they seek professional financial advice. Recently, Tom Baigrie and I, representing the PDG, met with the Financial Ombudsman Service to discuss the delicate trade-off between cost and value. While this may seem like a technical debate, the implications run deep, influencing how compliance managers and networks set and enforce their rules. Several key issues emerged from our discussion, and this article explores some of them.
The Hidden Differences Between Adviser and Direct-to-Consumer (D2C) Protection Plans
Many advisers know that companies such as Barclays, Direct Line, Nationwide, Sainsbury’s, and Santander offer single-tied protection plans designed by major insurers like AIG, Aviva, or Legal & General. However, they may not realise that the quality of these plans can differ significantly from those available through advisers—even when offered by the same insurers.
Understanding Consumer Duty and the Hidden Costs of Indexation
Consumer Duty requires advisers to actively seek out value for their clients. While this doesn’t necessarily mean selecting the cheapest or so-called “best” plan, value must always consider what provides the greatest benefit in the long run.
The Evolution of Critical Illness Claims: Transparency, Disparities, and the Road Ahead
It was 20 years ago today. No, not when Sergeant Pepper taught the band to play - that was 1967. I’m referring to 2004, the year insurers began releasing critical illness claim statistics.
Evolving Landscape of Critical Illness Plans and Innovations Across Insurers
Protection advisers realise that the world of critical illness plans is a nebulous landscape where as soon as plan details are understood an insurer opts to introduce changes that require understanding and a reappraisal.
Why Value Should Guide Insurance Choices Over Cost
What a strange world we live in. Consumers spend countless hours selecting the car that they want, looking at the salient features like heated seats, electric wing mirrors, reverse driving cameras and the like.
The Rising Demand for Health Benefits Beyond Financial Protection
CIExpert’s Critical Thinking 2024 report highlighted the value consumers place on added health benefits such as annual health MOTs, 24/7 GP access, and second medical opinions. Surprisingly, despite these benefits not being contractual or featured in brochures, there was significant enthusiasm for them. The report also indicated that fear of cancer and concerns about the NHS’s ability to provide timely treatment were major factors in deciding whether to take out a critical illness plan.
Unveiling the Truth: Consumer Insights Shake Up Critical Illness Insurance Landscape
In late 2023, CIExpert initiated a comprehensive market study in collaboration with Opinium, surveying 5,000 consumers to delve into their perceptions and comprehension of critical illness (CI) plans. This survey stands as the most exhaustive of its kind regarding critical illness insurance.
Navigating the Evolving Landscape: The Impact of Financial Regulation on UK Advisors and Consumers
As the 36th anniversary of financial services regulation approaches, it's likely that most present-day advisors have never experienced an unregulated industry. The debate on the merits of regulation has been extensive, but one thing is certain: the landscape has evolved significantly since April 1988.
A focus on comprehensive Protection planning
Advisers can no longer afford to overlook life, critical illness, and income protection insurance. Those embracing their advisory responsibility are focused on ensuring comprehensive protection for all clients, with regular reviews to maintain relevance. On the other hand, those feeling overwhelmed, preoccupied with mortgages, or lacking interest must now guide clients to firms with established arrangements. Numerous protection specialist firms are eager to collaborate with busy mortgage brokers, efficiently addressing the responsibility requirement.
Reflecting on 2023: milestones, challenges, and innovations on the Protection landscape
In a manner similar to 2022, the year 2023 will be etched in memory for various reasons – some commendable, others disappointing, and a few rather mundane. One notable milestone is the 40th anniversary of the introduction of critical illness in the UK.
2024 Outlook: Navigating the Post-Rate Rise Landscape in the Financial Markets and Insurance Sector
As we enter 2024, the prospects appear more optimistic with the conclusion of rate hikes. While these increases may pose challenges for some, it's crucial to note that the Bank base rate now aligns with pre-2008 levels, marking the end of a 15-year low-rate era initiated by the credit crunch.
Alan Lakey: What happened when we met the Ombudsman
The perennial battle between price and value often results in consumers ending up worse off despite the benefit of advice. Recently, Tom Baigrie and myself, on behalf of the PDG, met with the Financial Ombudsman Service to discuss the trade-off between price and value.
ABI Cancer Changes
CIExpert has been receiving numerous questions regarding the ABI minimum standard wording for cancer which was tweaked within the September 2022 publication. One change relates to the exclusion of thyroid cancer unless it has reached T2N0M0 and the other is the alteration to the early-stage prostate cancer exclusion.
The benefit of Children’s critical illness
Whilst many think otherwise the benefit of including children’s critical illness within a policy cannot be overstated.
Single or joint life insurance
I am frequently questioned as to why I am a proponent of two single life plans rather than a slightly cheaper joint life critical illness plan.
The merits of “Grouping” in the Critical Illness market
The recent relaunch by Vitality signals a major change in the critical illness market.
Nightmare on Compensation Street
I sometimes awake in the middle of the night, bathed in sweat and breathing heavily. For a minute or so I’m confused and disoriented and then, after the mental turmoil subsides I realise it was only a nightmare. In my nightmare I had worked at a Claims Management company (CMC).