The level of enquiries for life cover plummeted by almost 50% over June and July, according to finan...
The level of enquiries for life cover plummeted by almost 50% over June and July, according to financial data comparison service Moneynet. Enquiries on Moneynet fell from almost 8,000 during May to just over 4,000.
Sales of life cover are normally consistent throughout the year, which makes the figures puzzling. "This is not so much a tail-off as a catastrophic slump, and you have to wonder how people are going to cover key outgoings such as the mortgage payment in the event of the worst happening," said Moneynet chief executive Richard Brown.
Despite current low premiums in the life market, overstretched mortgages and rising council tax and energy bills were named by Moneynet as some of the factors that could be putting people off buying life cover. It also attributed the summer slump to the World Cup, which has been found to slow sales in other areas of the economy.
"We could be looking at some very grim scenarios as consumers are obliged to tighten their belts even further. Life cover is as cheap as chips, and it is perhaps a false economy to abandon it," added Brown.
The news that the ABI and British Medical Association (BMA) agreement on GP report (GPR) fees has broken down will usher in a period of uncertainty.
Lack of innovation investment in the UK insurance market has been highlighted by recognition of RGA's work in the US.
Protection business in 2012 and 2013 will be affected by events this year and some fundamental changes to the way customers policies are priced into the next. Richard Verdin explains.
Employee assistance programmes are in the spotlight due to a schizophrenic approach by government. But as Sue Weir points out, they are backed by solid research.
How will people buy insurance in future? Greg Becker visits the US for developments in online distribution.