As 2005 comes to an end, it is fair to say it has been a busy year in the protection and health insu...
As 2005 comes to an end, it is fair to say it has been a busy year in the protection and health insurance markets. It began with the introduction of Financial Services Authority regulation and a flurry of changes and red tape that made advisers' lives a little bit harder. But almost one year on, is life any easier for the IFA community?
It would seem not. Compliance costs and increased workloads have taken up the majority of advisers' time, and the Treating Customers Fairly initiative has created a whole host of problems in the protection market, notably the debate surrounding advised and non-advised sales - one that will no doubt rage well into 2006.
Whether it will be resolved remains to be seen. Advisers worried about the implications of non-advised sales for consumers should continue to voice their concerns, but it seems the regulator, for the time being at least, is sticking to its guns and continues to advocate choice for all consumers.
In the private medical insurance sector too, challenges remain. Sales of individual policies continue to fall, and with extra funding being pumped into the NHS it seems the market is in need of revamping.
Providers have been looking at this, however - PruHealth launched into the market with a new concept that took into account lifestyle choices. A good idea in theory, but advisers tell me the challenge is finding younger clients with enough disposable income to purchase cover. Let's hope that the media campaign being embarked on by providers has an impact on consumers and hits home on some of the issues in this market - and that 2006 brings about some resolutions to the key issues facing everyone in the protection and health insurance sectors.
Angela Faherty, editor