For many, a new year signals a new start. And the protection and health insurance sectors are no exc...
For many, a new year signals a new start. And the protection and health insurance sectors are no exception to this rule.
It seems like only yesterday the news that the Financial Services Authority would seize regulatory rule in 2005 hit the market, and now the day is finally upon us. But is the industry ready for its reign?
Players in the protection and health insurance markets can only guess what impact the new regime will have on business, but there is no denying that an interesting year lies ahead. In some ways, all the hard work and preparation involved in complying and preparing for 14 January 2005 has been done, in which case, it is business as usual.
But in a market where speculation is rife, a fall out is of course, expected. It is thought that some advisers are perhaps not as prepared as they should be - the consequence of which remains to be seen. But one thing is certain; there is no escaping the firm hand of the regulator.
It is not all doom and gloom however. Bringing health insurance and protection products under the general insurance umbrella is good news for the market as it creates a universal approach to health insurance solutions. Whether used to pay for medical treatment, or to insure against ill health and disability, the need for protection has never been greater, and bringing these products under one banner should help raise awareness among consumers about their value.
Whether this holds true, remains to be seen. But whatever surprises the next 12 months may hold, 2005 looks set to be an exciting year. Only time will tell if it's a happy one.
Angela Faherty, editor
