Product innovation will not close protection gap
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Many IFAs believe that clients do not have adequate protection in place and say that advisers could be doing a lot more to close the protection gap.
A survey from Scottish Provident polled 733 advisers and found that a staggering 99% believe that the protection gap still exists, with 23% arguing that advisers could be doing more to help ensure clients have adequate cover.
A further 42% believe that only some advisers are working to close the protection gap.
This is despite 64% forecasting more product development in protection over the next ten years compared to the last decade.
Roger Edwards, proposition director at Scottish Provident, says:”With 23% of IFAs stating that intermediaries can be personally doing a lot more for their clients to help close the protection gap, the introduction of new and improved products in the industry will not close the gap by itself.
“Over the next ten years all of us, providers, IFAs, reinsurers and the government have a role in finding ways to further educate consumers on the importance of protecting themselves and their families, in an attempt to close the gap.”
The research also shows that over half of the IFAs questioned are concerned about the threat that online product information and direct product details will hit their client bank.
Some 14% predict that there there will be considerably less demand for IFAs by 2020.
