April 2012 saw a new landmark in the payment protection insurance (PPI) market, as legislation stated that this product could no longer be sold alongside a loan, which in effect has led to the creation of a new standalone protection market for this and other similar products.
The Office of Fair Trading’s investigation into the super-complaint launched against PPI concluded that problems existed due to the lack of competition in the market. As a result they produced seven remedies, some of which have led to the creation of a new standalone market.
Is there still a market for income protection?
Our latest insight paper on the opportunities in protection post-PPI highlights the potential opportunities that are available for advisers in the protection market.
We believe that there is still a strong case for the need of income protection insurance. Bright Grey carried out research in April that suggested that most people only deem themselves to be in serious debt if the amount is over £14,000.
This intimates that people may not have cover for all their borrowings and lifestyle expenses, which would leave them in serious financial difficulty if they could not work.
However, advisers can take advantage of this new standalone protection market by capitalising on opportunities to sell related products from the protection market. These recommendation opportunities give advisers a chance to help protect their clients as well as protecting their businesses.
This insight paper looks at the opportunities being created from the post-PPI era, and examines the best methods to ensure advisers can make the most of them, including:
- How to maximise the opportunities and the areas to consider
- Positioning IP to avoid the major objections to sales
- Analysis of other opportunities in the protection market
- How the Competition Commission’s remedies will affect the protection market