Latest figures from the Association of British Insurers (ABI) have revealed a significant increase i...
Latest figures from the Association of British Insurers (ABI) have revealed a significant increase in protection business transacted via intermediaries in the third quarter of 2001.
According to the figures, new contracts for income protection have increased by 35%, critical illness by 30%, mortgage-related term assurance by 32% and non-mortgage related term assurance by 17%, compared to the same time last year.
Malcolm Tarling, spokesperson for the ABI, said the increase in business was down to the changing attitudes of consumers.
'We have been saying for some time that consumers need access to good, independent financial advice. There is a huge saving gap at the moment and having ease of access to the right advice is key to closing it. By looking at these figures it seems this message is at last beginning to filter through. In addition, protection products provide good value cover and consumer's are rightly taking advantage of it.'
Nick Kirwan, head of product development at Scottish Provident, said the increase may also be a reflection of recent market conditions.
'There are a number of reasons why the increase has occurred. The effect of stakeholder pensions and the events of 11 September ' which provoked more people to buy protection and hold off investing ' are just two reasons. The combination of events has had a profound effect on the market. We have experienced a significant increase this year and we are also confident there will be a bumper increase in business seen in the first quarter of 2002.'
