The protection industry must give intermediaries greater access to underwriters, argued experts in...
The protection industry must give intermediaries greater access to underwriters, argued experts in the panel debate at this year's COVER Protection Forum.
Discussing different ways to eradicate non-disclosure in the industry, Andy Chapman, chief executive of Pioneer Friendly, said that this would help to ensure intermediaries did not become "mini doctors".
Nausicaa Delfas, head of the retail themes division at the Financial Services Authority (FSA), said: "The only way of getting rid of non-disclosure is to have GP reports on everything."
Disagreeing, Chapman said: "They can be wrong, expensive, slow and varying in quality. We should rule out GP reports as much as we can."
Kevin Carr, head of protection strategy at LifeSearch, said it was currently trialling an option where a consumer who is willing to pay more can be fully underwritten at the outset in return for a guarantee that the policy will pay out.
On raising awareness, Carr said the protection gap was bigger than those in the pensions, savings or investment markets and slammed the industry for being so poor when it came to advertising.
Peter Hinchliffe, lead ombudsman for general insurance at the Financial Ombudsman Service, added that the industry was "not offering a good product".
John Ritchie, head of group and client marketing at Munich Re, said that the Government did not have a good track record on the topic and that "there was nothing wrong with some good old fashioned marketing".
Chapman added that the Government should make life cover compulsory. "Cars are worth around £20,000 but a life is worth around half a million; so why is car insurance compulsory while life cover isn't?"
Speaking about the Retail Distribution Review, Delfas said that, despite its reputation, the FSA was intent on having dialogue with the industry.
