Critical illness
Scottish Equitable Protect is considering re-entering the guaranteed rate critical illness market, writes Angela Faherty. The firm has been closely monitoring developments since it quit the sector in early 2003.
Speaking at the latest COVER Think Tank, the firm's product development manager, Stephen Crosbie, said that despite rising premiums prompting a slight lull in the market, demand for the product was as high as ever.
"Prices in the guaranteed market have increased quite significantly over the last few years and there is now quite a differential between guaranteed and reviewable rate products. We have seen differentials of up to 40% for a 25-year policy and that is still not enough to get someone to switch to reviewable rates," he said.
Crosbie added that the firm now recognises the need for the product and said it was currently looking at ways to address the issue.
"The desire for guaranteed rates has been very evident in the market over the last year. As a provider that doesn't offer guaranteed rates, we certainly recognise the need for them and it is part of our ongoing plan to look at how we can plug that gap," he said.
Lesley McPherson, spokesperson for Scottish Equitable Protect, refused to confirm the provider's intentions, but admitted the firm was weighing up all its options.
"No decision has yet been made, but we are not ruling anything out," she said.
