The managing director of adviser firm, LifeSearch, has hit back at remarks made by Nick Starling, ...
The managing director of adviser firm, LifeSearch, has hit back at remarks made by Nick Starling, director of general insurance and health at the Association of British Insurers (ABI), about the consumers' choice to buy protection without advice.
In a letter published in May's issue of COVER, Starling said that, although advice can be important in ensuring that people buy the right protection product, consumers should be able to buy products without advice and, to enable this, insurers needed to focus on providing clearer information about products.
However LifeSearch's Tom Baigrie said Starling's letter failed to address the most important issue surrounding non-advice sales - that consumers should be warned of the dangers of being sold products without receiving professional advice.
"No one wants to stop non-advice being available to customers. However, the ABI should be making its members explain to customers why they aren't giving advice. Customers need to understand that their rights are reduced if they buy without advice as they have limited recourse to the Ombudsman. Let non-advice exist, but let's make sure insurers still treat customers fairly. Warnings need to be amended so that consumers are clear of their rights," he said.
