Intrinsic's legal and governance director, Wallace Dobbin, is concerned that economic and regulatory barriers are putting off new distributors and providers from entering the protection market.
Insurers are currently contending with a number of new regulatory issues which experts have predicted will make them more risk-adverse and will force them to push up premium prices.
Solvency II, which sets out rules for how much capital insurers have to hold against various assets, depending on their risk and duration, is due to be implemented by January 2014. Insurers say they will become more risk-adverse as a result of its implementation.
Insurers also have to formulate new propositions to deal with the European Court of Justice’s decision to ban price differences based on gender, which comes into effect on 21 December and is expected to push up women’s life premiums by up to 20 per cent.
Speaking last week at the protection review conference in London, Dobbin said: “It is absolutely necessary that we get a continual inflow of new players, and competition in the marketplace is absolutely vital".
Full article
© MoneyMarketing
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article