In this third video, our protection experts discuss the effects of major regulatory changes in the past year, namely the Gender Directive, which came into force in December 2012, and the Retail Distribution Review, which came into force in January 2013.
The video explores:
• Pricing changes due to the Gender Directive and how this has affected the attractiveness of protection products
• How the Gender Directive forced advisers to engage with clients on protection needs
• How the exemption from the RDR commission ban will affect the number of advisers selling protection
• What a potential influx of protection advisers could mean for the commission exemption in the longer term
Further reading
• The Gender Directive is said to be likely to lead to a reduction in policy switching. See FTAdviser’s Guide to Life Insurance for details.
• The way in which life insurers were taxed also changed at the end of 2012, which has compounded the increase in policy rates. Read our earlier article on the changes by clicking here.
Back to Guide to Selling Protection.
