Carol Sergeant has suggested the proposed income replacement product will not be included in the first phase of the proposed simple products, the Income Protection Task Force (IPTF) has stated following a meeting with the review's chair.
According to Clive Waller, co-chairman of the IPTF, Sergeant "really" wanted the IP product to be included in the Review of Simple Financial Products' first phase roll-out, but hinted that it would not happen.
Waller said: "It will not go into the first phase. We would initially liked to have seen the IP product go through with the first phase but it had no chance really of being ready in time. In a meeting the other day Carol Sergeant did not say anything to make me think otherwise."
He added the IPTF was "absolutely" in favour of the simple IP proposal despite acknowledging that arguably there was already simple IP products in the market.
"Yes we do have simpler products but the problem is that the consumer does not know about them," Waller said.
John Letizia, head of public affairs and CSR at Unum, said: "I fully expect the review to be completed to the deadline.
"In the long run there is no doubt that it will be infinitely preferable for the simple IP product to miss the February deadline, but come out with the right product, than to bow to short-term industry pressure and not end up with the right product structure."
He said missing an arbitrary deadline would not change the point that simple IP had the potential to be a significant landmark for the IP category and the broader financial services market.
Waller added that in terms of product structure capped terms and conditions could be better as opposed to something that was completely standardised.
