The Financial Services Authority (FSA) may soon announce changes to regulation for the over-70s mark...
The Financial Services Authority (FSA) may soon announce changes to regulation for the over-70s market, writes Georgina Kenyon. Experts urged the regulator to change the rules, which presently make a distinction between selling insurance to people over the age of 70 from younger customers.
If the FSA goes through with the amendments, expected to be made public in August, Insurance Conduct of Business (ICOB) advisers may be able to sell insurance to the over 70s.
Nick Kirwan, director of protection marketing at Scottish Widows, argued that changes in demographics will make these changes necessary.
He said: "Currently, if customers are looking for an insurance policy beyond the age of 70 it is just not widely available. The rates are also not competitive or particularly reasonable for people over 70.
"But because of the ageing population and the increasing trend for more people, in particular men, to have families beyond the age of 60, the current regulation needs to be looked into," he added.
Kirwan explained that it was not practical to separate the process of selling insurance to people who were different ages, saying it would be preferable for adjustments to be made to the current law.
In a separate announcement, the FSA revealed that experience of general insurance (GI) regulation so far suggested there are greater risks to consumers relating to personal protection - such as payment protection insurance and critical illness cover - than from other areas of general insurance.
As part of its effectiveness review that began earlier this year, the FSA is considering whether ICOB rules provide rules sufficient consumer safeguards for the sale of protection policies.
Dan Waters, director of retail policy at the FSA, said: "The GI effectiveness review presents a good and timely opportunity to look at ICOB in fine detail."
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