The income protection (IP) insurance industry is “on the precipice of change”, according to Scottish Provident product marketing manager Roger Edwards.
Speaking at the IBC Healthcare Insurance Industry conference, Edwards pointed out that in 1999, for the first time, the percentage growth in IP overtook the percentage growth in CI, according to figures from Swiss Re.
Edwards said he does not think critical illness (CI) insurance has been more successful because it is a simpler product but because it has caught the imagination of independent financial advisers (IFAs).
Until recently, protection has not been on the agenda for IFAs. But Edwards said, as IFAs are faced with falling incomes from the pension and endowment mortgage markets, the time is near when IFAs will have to sell protection. However, Edwards said:”If we really want our Cinderella [income protection] to go to the ball, we have to commit to a high level of education among customers, sales people and IFAs.”
See news analysis page 15