Research
Income protection (IP) is the most recommended protection product, according to recent market research from COVER Protection Insight.
The study, which questioned more than 400 intermediaries writing protection business, revealed that 92% of respondents said they would recommend IP to their clients. This is marginally ahead of the 91% who said they would most likely recommend guaranteed critical illness (CI) products.
Yet, despite this, sales of IP have remained low over the last couple of years. Guaranteed CI, on the other hand, has become the best selling protection product in the UK, despite receiving negative press for changes to illness definitions and future sustainability.
Some intermediaries blame providers for the low uptake of IP, with 68% saying they are not sure whether insurers are providing adequate services. To solve the problem, 57% thought an IP/CI hybrid would be favourable, with only 12% suggesting a product that marries the two solutions would be an inadequate option.
The study also showed that product features and price are seen as the two most important elements for an intermediary when considering a provider of IP or CI. However, the most important feature of a policy was listed as being the clarity of definitions of incapacity and guaranteed premiums for IP, whereas the choice between guaranteed and reviewable rates proved the key factor when looking at different CI plans.
Aside from CI and IP products, the findings showed that only 39% of intermediaries would recommend individual long-term care.
Commenting on the research, Eugene McCormack, director of marketing at UnumProvident, said: "The study provides a good insight into advisers' opinions of the protection market. It is, however, difficult to believe that so many advisers are recommending income protection products considering the product's volume of sales."
nSee Protection Insight supplement, published with this issue.
