Planet Insurance

At the time of writing it has certainly been a season of manifestos.

First we had the individual political party ones and then we had the combined Lib Dem – Conservative alliance one. As expected, the Lib Dems succeeded in watering down the Conservative proposals to split up the FSA. So, in a sense, we are where we were.

This is, however, not a time to be complacent. In policy terms I believe we are now entering a phase of both great opportunity and threat. The opportunity for the industry is to sort its house out and move to an era of proportionate regulation – taking advantage of the bonfire of nannying, pointless, rules. The threat is that, if we don’t sort our house out there will be more regulatory creep and naming and shaming, building on the actions taken on PPI.

So should we form an industry manifesto for  a change? Here are my top seven.

One. Develop the quality standard for IP, especially for simple products so that they become a trusted mass market alternative to PPI.

Two. Fully engage with the Government Commission’s debate on long term care and how insurance can contribute to funding – especially from long-term contributions, rather than one-off lump sum funding. This will never win any consumer support.

Three. Open a debate on the societal role of life and annuities insurances as an equal part of the pensions debate. What are the pros and cons of the trend towards differentiation on health status, for example?

Four. Engage with the Government on the role of PMI, to lift the burden on the NHS – especially in creating a healthier work force.

Five. Horizon scan for future external risks to nip potential problems in the bud. Do not leave this to the regulator.

Six. Reopen the debate on GP reports and seek to engage directly with clients on their medical e-records. This should result in better disclosure and reduced costs.

Seven. Maintain progress on reducing CI declined claims – much has already been achieved on the non-disclosure element, more radical thinking is needed on not meeting definitions.

We now have a great opportunity to promote protection insurance but it won’t happen if we sit on our hands.

Richard Walsh is a director and fellow of SAMI Consulting www.samiconsulting.co.uk