General Insurance Article - Consumer Panel want better insurance protection products

 In a discussion paper, published today, the Panel calls on the insurance industry, regulators and other stakeholders to tackle the ‘protection gap’, which leaves many consumers vulnerable to the financial consequences of long-term illness or premature death.

 The findings from the Panel’s consumer research, and discussions with industry representatives, highlight the lack of innovation in the market over the past three decades.

 The policy focus until now has been on encouraging savings as a means of building financial resilience. There has been little discussion about the role of insurance in helping people manage life’s risks.

 Panel Chair, Sue Lewis said: “Protection products have not kept pace with the needs of today’s workforce. People now are more likely to be self-employed or have insecure employment, with volatile incomes. Our research shows that people want value for money products that suit their lifestyles, and that they understand. The industry needs to respond to this, rather than just selling the same products as it did 30 years ago. We hope the industry, regulators, and other stakeholders will join in the debate about how this market can be improved for consumers. More of the same is not an option.”