There are encouraging signs of future growth in the protec- tion market, according to a new annual ...
There are encouraging signs of future growth in the protec- tion market, according to a new annual report, The Protection Review. However, the report also warns the sector could face challenging times in the years ahead.
The first issue of the report, compiled by industry comm-entator Andy Couchman and marketing consultant Peter Le Beau, said the protection market is the most successful sector of the insurance indus- try, having seen long-term sales grow by 60% in the last five years.
Despite this success, key areas of concern are high- lighted as being potentially problematic for industry players. Regulation and comp- liance remains a burden for many intermediaries who are concerned that the sheer volume of consultation papers and the imminent arrival of Financial Services Authority regulation is leaving little room for dedicating time to serving the needs of clients.
Similarly, there are concerns from providers regarding the reduction in reinsurance capacity and the pricing approach of the reinsurance industry.
Discussing the review, Le Beau warned of the serious challenges ahead. 'The protect- ion market is a very valuable part of the insurance industry and the The Protection Review underlines this. But we cannot ignore the serious issues faced by products like PMI, critical ilIness and income protection.'
