Government urged to support insurance sector

In a letter to members, the president of the Chartered Insurance Institute said financial services were already suffering from an “image problem”.

He said: “It is right that one of the CII’s strategic priorities is to increase visibility of our public interest agenda.

“It is also why I called on politicians and regulators to demonstrate balance, holding us to account, but not undermining public confidence through unwarranted intervention or headline-grabbing soundbites.”

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Mr Woolgrove added: “Despite the low public trust and esteem that currently exists, we should not forget that insurance’s central purpose fundamentally has a social good at its heart.”

He said the basic principles underpinning insurance were about value to society of pooling and transferring risk, paying a fair share, providing peace of mind to individuals, and “delivering on our promises when things go wrong”.

Adviser view

Ryan Hesketh, consultant for Merseyside-based Ludlow Wealth Management, said: “While it is all too easy for people to put off thinking about life insurance, it’s important to ask just what this protection is really for and why it’s necessary.

“We believe it’s about maintaining family life when the worst happens. Of course money can’t replace a loved one, but it can help to provide for the everyday issues life creates, and give you peace of mind.”