As we approach another new year, protection advisers should be looking forward to a busy 2004. What ...
As we approach another new year, protection advisers should be looking forward to a busy 2004. What with FSA regulation to prepare for and, according to Swiss Re's latest report, a £2trn protection gap to help bridge, it should be an eventful year. However many advisers are probably still catching their breath from 2003.
As well as trawling through numerous consultation papers from the FSA in 2003, the protection market has seen some big changes.
The year started with the first round of rate hikes for guaranteed premiums on critical illness (CI) cover.
Rates continued to fluctuate throughout the year, with a number of insurers introducing reviewable rates as prices began to rocket. Some insurers declared that the current CI product is unsustainable, fuelling speculation on the future shape of the market. The future of current products remains uncertain as the debate rolls into 2004.
2003 also saw a new player enter the protection market, with Bright Grey launching in spring. PatientChoice has also launched into the PMI market. New players were a welcome development, especially seeing how the rest of the year unfolded.
The big news in 2003 was Swiss Life (UK) being put up for sale. Despite UnumProvident's proposal to buy out its group business and subsequent withdrawal, Swiss Life remains unsold, and much missed by the market.
The year ended with the long term care market also taking a battering, with both AXA and Norwich Union pulling their pre-funded products.
Whatever 2004 holds, it's sure to keep advisers on their toes.
Kirstie Redford, editor
