ProtectionMar 30 2020

Insurers cite rise in sales amid coronavirus crisis

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Insurers cite rise in sales amid coronavirus crisis

Insurers have cited a rise in sales as people take out protection insurance amid the coronavirus crisis. 

According to Cignpost, more individuals have turned to financial protection products as the coronavirus started to spread across the globe, prompting a spike in income protection and life insurance policies.

Paul Foody, founder of Cignpost, said the "uncertain times" had caused concern, especially as people saw stock markets tumble and health concerns became more pressing for individuals.

He said: "As health comes to the forefront, clients are naturally turning to protection insurance for financial support. In fact, our Cignpost life sales have increased by 94 per cent compared to last month.

"We've already seen some providers introduce coronavirus exclusions for new business, but we don't plan to introduce any exclusions to our Cignpost Life contract. The positive news is that many clients will be protected against the disease if they already have cover in place."

Timothy Dodd, managing director of Cignpost Health, agreed that the current climate was "causing much anxiety and stress" among the public. 

Moreover, the increasing strain on the National Health Service has been underlined once again, which he said was also contributing to people's renewed interest in private health policies. 

He said: "It's easy to see how clients may be looking to their financial adviser for support during this difficult time. Many protection policies have some fantastic value-added benefits attached which advisers can certainly play their part in signposting clients to.

"For Cignpost Life members, access is provided to mental health support, virtual GP services, discounted health checks and unlimited access to a team of qualified nurses."

Last month, insurer AIG said the use of its virtual GP service, which is a standard benefit of its protection policies, had risen over the winter period and would be increasingly important as policyholders seek information during what the UK government is calling its coronavirus 'containment' period.