Protection chiefs called to stagnant IP pow wow

The Income Protection Task Force (IPTF) is holding a heads of state meeting for CEOs of the major income protection providers.

It is hosting the conference in concern at the continued low profile of the product with both consumers and advisers and is seeking views on ways to increase sales of the product.

The organization hopes to produce a Charter for IP and noted concerns about knock-on effects from the payment protection insurance (PPI) could tarnish the sector.

Clive Waller, co-chairman of the IPTF, explained the body's current fears about the state of the market.

"Sales of IP barely top 100,000, when we believe protection of income is the most important need that our industry can cover," he said.

"Added to this, there is huge confusion among the public about the difference between IP and payment protection insurance (PPI).

"We fear there is a real risk of contagion of a very important product as fall-out from the PPI debacle continues so this Summit is intended to be a rallying-point for the industry and an opportunity to restate the industry's commitment to the product," he added.

Waller used his keynote speech at COVER's Health and Protection Forum in October to criticise the industry for not engaging with consumers successfully.

He warned advisers and providers that they must modernise and address consumers correctly to flourish in the current market.

Peter Le Beau, co-chair of the IPTF, continued: "We intend to develop a Charter for Income Protection following the meeting.

"In our estimation in excess of 20 million families in the UK need some form of income protection cover, in reality actual coverage is less than a quarter of that.

"I think we are failing as an industry if we don't strive to change that situation and added to this the momentum around Simple Products is growing.

"This is a very important period for the protection industry and we want to do everything we can to improve the situation for millions of unprotected consumers," he added.

The meeting will be held on 18 April at the CII Headquarters in Aldemanbury with invitations to all the major writers of group and individual IP being sent out shortly.