Well, what do you know? Standard Life has decided to pull out of the protection market. Following mo...
Well, what do you know? Standard Life has decided to pull out of the protection market. Following months of deliberation, the firm finally opted to pull the plug on its protection business after admitting the market is simply too competitive for what it was offering.
With protection business representing less than 1% of Standard Life's total sales and its share of the protection market only amounting to 0.6% in 2006, according to figures from the Association of British Insurers, the move is hardly a surprise.
Some experts suggested that Standard Life made one last attempt to save its protection arm by making an offer for Resolution. However, the insurer was outbid in the last minute by Pearl, which offered a better deal - leaving Standard Life with no other choice than to call it quits.
So, what does this mean for the industry? Not a lot seems to be the overall consensus. As Standard Life's stake in the protection business was so small, the exit will have no real impact.
Instead, the sector has much to look forward to in the New Year as other firms are rumoured to be entering the market within the next 12 months - with Fortis being tipped to unveil its new protection arm at the beginning of next year.
So, while it is a shame to see such a well known brand having to bow out, its exit will leave further room for more competitive and innovative protection brands to flex their muscles.
