There has been a significant increase in broker training of late; Tenet's CII accreditation and Partnership's sell-out, long-term care roadshows. And, it was only January when Amii launched a healthcare exam with the CII. Is the industry seeing a ramp up in healthcare and protection professionalism?
Roy McLoughlin, Master Adviser
One of the more welcome developments to come after the FSA's Retail Distribution Review (RDR) has been the perceived and expected increase in advisers turning to protection for an integral part of holistic financial advice.
Many purists have been arguing that this movement is not before time, as the levels of protection sold are still alarmingly low. However, what has been demonstrated of late is that there is a genuine appetite for training in this field among the adviser community; notably in the current round of PFS protection roadshows.
Many intermediaries have been coming to this subject with limited experience. They have been rubbing shoulders with many new converts too and our evidence so far has pointed to a huge demand for industry intervention in this.
With the demise of the direct sales forces, training is difficult to find. Life companies should be actively encouraged to provide this because, aside from a few notable exceptions, there is not a lot of assistance currently being offered.
The introduction of the AMII exam is great news but we desperately need a protection exam on our side of the fence. Having struggled through the RO and JO modules the lack of protection, with the exception of elements of it in RO6, needs to be addressed as it will also undeniably help in this much-needed education process.
Tony Columbine, Life Relevant Policies
The recent moves by the likes of Tenet, Partnership and AMII can hopefully raise the profile, knowledge and professionalism of the recently much neglected protection market. This is especially relevant in bringing new CII-accredited qualifications to a market where currently there is no regulatory requirement.
Recent economic turmoil effecting the pensions and investment markets coupled with the imminent sweeping changes following the FSA's Retail Distribution Review all point to a new age for protection.
Recent ABI figures show that almost 30m term and whole of life policies are in force with customers receiving pay outs of £32.7m each day. Major IFA networks, bancassurers and tied agencies are now all recognising the size of the potential market, and are racing to realign distribution models with protection.
Major problems relating to professionalism and the large mis-selling of secondary insurance, such as PPI, has hugely damaged consumer confidence and will still need to be overcome. FSA consumer research confirms the complex nature of the protection market and identifies failures in communication about price and product disclosure.
Increasing knowledge and awareness and the promotion of professionalism can only improve the confidence from customers who rely heavily on advice from sales advisers and brokers. Protection sales have consistently continued to fall or stagnate. Education will hopefully provide more motivation.
