F&TRC has launched a protection product ratings service to help advisers and employers understand which providers offer the most suitable and comprehensive recommendations for their clients.
Following consultation with a range of experts and adviser firms, each provider in the market has been awarded either a gold, silver or bronze medal for both their overall proposition and each of the following underlying categories:
Terminal illness benefit definitions, added value benefits, guaranteed insurability options, trusts (for life protection), waiver of premium; underwriting limits, single and joint life options, underwriting services, exclusions, interest rate options and free cover limits (for mortgage protection).
Theses areas were measured individually and results are based upon factual data. In total more than 4,500 questions were applied for each insurer and each category was then weighted based on its importance in accordance with the views of advisers and experts.
So for life protection Aviva, Bright Grey, LV and Scottish Provident were awarded gold; AIG, VitalityLife and Zurich got silver and Aegon, Friends Life and Legal and General were given bronze.
In terms of mortgage protection Aviva, Bright Grey, Scottish Provident and Zurich were awarded gold; silver went to AIG, LV and VitalityLife, while Aegon, Friends Life, Legal and General again got bronze medals.
Michael Aldridge, protection sales director at London and Country, said that the system gives a quick and simple summary highlighting the pros and cons for each provider, as well as something that identifies premium and economy products, both of which have a valid position in the market place.
Ian McKenna, director of F&TRC, thanked those providers which took the time to complete the data requests. “We know it’s a lot to ask, but we’ve been encouraged that they, like us, recognise the importance of clear comparative data for a competitive marketplace to survive and thrive.
“This announcement follows the launch of our workplace pension ratings earlier this month. We will continue to announce new ratings across a range of other sectors and products later in the year.”
peter.walker@ft.com
