COVER reporter Pete Carvill comments on Skandia's resignation from the Association of British Insurers (ABI).
In what was an unexpected announcement, Skandia announced that it had resigned from the Association of British Insurers (ABI), declaring that it '... felt a lack of alignment with the broader membership' of the body. The main reason, it said, was because of its commitment to advice-driven sales which is something it felt set it apart from fellow members. As a result, the provider is now lending its support to the Association of IFAs (Aifa).
The significance of this varies, depending on the point of view. From a protection standpoint, Skandia is not seen as a massive player in that market. From a wider insurance perspective, this could have deep repercussions as it is a big name in other areas such as pensions and investments, meaning it will no longer be involved with any work the ABI does in this area.
From a general overview, this is quite a blow to the ABI and reveals real discord behind the united front trumpeted by the industry. With some of the negative press that has circulated around the body this year, the Skandia announcement is not great news.
While the dust begins to settle and a clear picture begins to emerge, a number of questions are beginning to form:
1) Is Skandia going to stick to the critical illness and non-disclosure agreements recently brought in by the ABI?
2) Are advisers going to be interested in selling products from non-ABI affiliated providers?
3) Should the ABI look to itself in case there are more disaffected companies out there?
Maybe it is time we stopped asking why we have the questions, and start answering them.
The significance of this varies, depending on the point of view. From a protection standpoint, Skandia is not seen as a massive player in that market. From a wider insurance perspective, this could have deep repercussions as it is a big name in other areas such as pensions and investments, meaning it will no longer be involved with any work the ABI does in this area.
From a general overview, this is quite a blow to the ABI and reveals real discord behind the united front trumpeted by the industry. With some of the negative press that has circulated around the body this year, the Skandia announcement is not great news.
While the dust begins to settle and a clear picture begins to emerge, a number of questions are beginning to form:
1) Is Skandia going to stick to the critical illness and non-disclosure agreements recently brought in by the ABI?
2) Are advisers going to be interested in selling products from non-ABI affiliated providers?
3) Should the ABI look to itself in case there are more disaffected companies out there?
Maybe it is time we stopped asking why we have the questions, and start answering them.
