Cost-cutting focus on short-term IP

Scottish Provident is set to launch a short-term income protection (IP) product at the end of the year. The provider is developing a product with a two-year payout period which will be rolled out in Q4. The insurer is the latest provider to try to cut premium costs by focusing on short-term IP. David Heeney, chief marketing officer for the UK and Ireland at Scottish Re, said: "I think that's the right thing to do when trying to balance cost. It forces you down the road of cutting the length of the payout."