ProtectionJul 30 2014

Advisers label PruProtect’s single tie operations ‘unique’

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Financial advisers have labelled PruProtect’s single tie offering to advisers as “unique”, questioning why advisers would want to cut off potential access to other alternatives, following PruProtect’s latest appointment.

PruProtect has appointed Darrell Stone to a newly created post, focusing on the growing number of intermediary firms committing to the firm’s proposition on a single tie basis.

Mr Stone joins from Legal and General, where he worked for over 20 years, most recently responsible for L&G Gulf’s sales, marketing and expansion plans.

He will be part of the overall sales and marketing team, backed by PruProtect’s compliance and legal teams.

Phil Jeynes, head of account development at PruProtect, said: “We’re seeing a surge in applications from firms wanting to sell PruProtect products exclusively.

“This is due to our unique range of protection products and our healthy living programme, Vitality, which allows intermediaries to offer rewards and incentives to their clients.

“The vast majority of firms are either independent or work with a panel of insurers, however some prefer to specialise and offer just one provider’s products.

“We want to develop our single tie proposition and engage with more brokers in this way.”

Mr Stone added: “PruProtect are the most exciting and innovative provider in the protection market and I am thrilled to be joining to help their continued expansion and evolution.”

Aside from working at L&G, he represented Team GB and England at the World and Commonwealth games as a race walker.

Roy McLoughlin, financial life planner and partner at Master Adviser, told FTAdviser: “In a perfect world a consumer would always prefer an independent adviser who can recommend from a range of different insurers”.

He added that “the PruProtect proposition is unique in the market as it includes severity-based cover and the Vitality programme”.

Speaking to FTAdviser, Alan Lakey, partner at Highclere Financial Services, shared the view that PruProtect has a unique proposition with no basis for direct comparison, but questioned why any adviser would want to cut off potential access to other alternatives.

He said: “The move to single tie is normally made because a firm can’t sell to advisers on a whole of market basis, so I have to question the demand here.

“Either advisers can’t be bothered to do their research, PruProtect are paying them more, or they want their hand held through CPD and training.”

A spokeswoman for LV’s life and pensions business, added: “It is important that clients aren’t shoehorned into a particular product and that they are encouraged to purchase a policy that best fits their individual needs.”