Life insurance: consumers will vote with their wallet

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Consumers will not stand for over complex life insurance anymore, according to Beagle Street.

Matthew Gledhill, managing director of the online life insurance provider, said: "The life insurance market is finally catching up with the motor market. Consumers are now realising that it's just as easy - and beneficial - to shop around for life cover as it is for car insurance."

The insurer cited several recent changes in the life insurance market as having an effect on consumer behaviour.

The first of these changes was December's long-awaited EU Gender Ruling, which altered the way life cover is calculated.

In January 2013 ‘i-e' tax changes impacted the way some of the larger players make money on life cover and how they calculate premiums.

In addition, the Retail Distribution Review has also come into force, which affects IFAs, who are beginning to dwindle in numbers.

Gledhill added: "We predict that the life market will move in the same direction as the motor market did a few years ago - and that will lead to simple, easy to buy life insurance policies and more competitive prices.

"Life insurance is a very simple concept, but buying it has been made far too complicated. As a result, more than half of British adults have no cover at all.

"Like it or not, the life market is changing, which means that long winded, confusing and archaic processes will simply no longer cut it with consumers.

"People will be looking to buy from companies who make life cover as cost-effective and simple as possible, so it will be interesting to see how the industry responds."

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