IFAs lose significant re-broking income amid hiked G-day prices?

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IFAs have lost significant protection policy renewal income following G-Day price hikes, an adviser has said.

Advice firm Catalyst Financial Solutions said re-broking portfolios was a lost income stream as clients were put off by the comparably higher prices post-gender neutralisation.

Lawrence King, chief executive of the IFA firm, said: "For new clients, selling protection is ok because they have nothing to compare against.

"But the renewals and re-broking for existing policyholders is probably a line of business that is not going to happen much now."

He added that as an IFA there were other areas of business to rely on but the protection specialist adviser may struggle if this was a significant part of income stream.

"Insurers have over-priced and you would hope to see prices come down in the coming months," King said.

Alan Lakey, protection specialist adviser and partner principal of Highclere Financial Services, said it was easier for a specialist to re-broke existing clients despite higher premiums.

He said: "It is easy for me to renew because I have really gone into a conversation with my clients about the value of a plan and focused on a balance between that and price, as opposed to just finding the cheapest.

"The higher premium prices in this way are not necessarily going to be a problem because I do come at it from a specific protection angle."

Lakey added that prices would likely come down as insurers settled with unisex propositions.

But he stressed price was not the most important factor and if anything would rather see higher premiums in the industry with loosened underwriting and claims criteria.

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