The AIFA critical illness working party may evolve into protection taskforce
The Association of Independent Financial Advisers (AIFA) critical illness (CI) working party looks set to evolve into a wider protection taskforce, if a new proposal is accepted.
A consultation paper has been issued to working party members which outlines plans for the new body and calls for comments.
Roger Edwards, chairman of the working party, said: 'The working party was set up to lay down standardised definitions for CI plans, and it succeeded in this with the launch of six definitions in the mid-90s. However, after the Office of Fair Trading published its report, it was proposed that an ABI working party should be set up as it was not deemed appropriate for a wholly IFA body to set the definitions.'
Debate on the future of the party has centred around the promotion of CI as an advice-led product, but there is concern that other areas of protection need equal promotion in the IFA fraternity. Edwards said: 'There is an opportunity to evolve the working party into a wider protection taskforce.'
Brian Lentz, IFA at Portfolio Insurance Services, said new proposals made sense and corresponded with changes in the provision of protection, where products are frequently sold 'bundled up' on menu of benefits products.
'The removal of boundaries between life cover, CI, IP and LTC, which can now be sold in combination, means it makes sense for there to be more interchange between those creating and marketing these products and those involved in the advice and sales process.'
While Rod Macdonald, head of sales and marketing at Permanent, welcomed the move to widen the party's remit, he regretted that the industry had failed to support the original working party.
He said: 'There did not seem to be a willingness among providers to collectively promote CI.'
