View more on these topics

CETA launches policy to boost ASU take-up

Insurance network CETA has launched a new ASU policy, CETA Safeguard, to increase take-up of ASU cover.

Although the government has set a target of having 55% of borrowers purchase an income protection policy by 2004, only a third of borrowers currently have one. Many consumers appear to have been put off by the cost of ASU policies and the 30-90 day exclusion periods which are imposed if a claim is made. Overall, ASU products are not perceived as offering good value for money.

CETA claims CETA Safeguard is cheaper than competitors, has no exclusion period and that policyholders will be given access to a range of additional support services to help them get back into employment as quickly as possible in the event that they make a claim.

Underwritten by the National Insurance and Guarantee Corporation, the cost per £100 of cover for CETA&#39s new accident, sickness, unemployment and hospitalisation product is £4.95 (including insurance premium tax.

CETA Safeguard cover is provided from day one and as a result policyholders are not penalised by the imposition of unfair exclusion periods. Most other general insurance products provide cover from day one but many say there is no reason why ASU policies should not do the same.

Policyholders can purchase protection to cover up to 60% of their financial out-goings each month through CETA, subject to a maximum monthly payment of £2,500 to enable policyholders to cover monthly mortgage repayments as well as other essential payments for utility bills, council tax, hire purchase agreements and insurance renewals.

David Quick, managing director of CETA, says: “There are serious problems with many of the ASU products currently on offer. Whichever way you look at them, most simply do not offer good value for money. ASU policies have become the Cinderella products of the general insurance industry. The time has come for a new breed of ASU products to be developed and marketed.”

Recommended

Rock solid service

From Gary BoothWhile it is easy to write about the lack of service by many lenders it is worth a mention a case submitted recently to Northern Rock who provided the following excellent turnaround. Submitted via post on December 18, 2002; property surveyed December 23; faxed copy of survey received at my office December 24 […]

Huntswood Outsourcing appoints senior consultant

Compliance outsourcing provider Huntswood Outsourcing Solutions has appointed Richard Pike as senior consultant. In his new role in Huntswood&#39s business development team, Pike will focusing on growing business within the life and pensions market, whilst further developing Huntswood&#39s mortgage proposition. Pike joins Huntswood from Marlborough Stirling, where he held the position of business development manager […]

Policy traders offer endowment winner

Investors can now buy traded endowment policies with existing guarantees at least on a par with the gross purchase cost. The Insurance Policy Trading Company says this will help investors make the most of reduced TEP prices. Julian Knopf, spokesman for IPTC, says: “In some cases the total outlay of purchase price plus future premium […]

Platform Home Loans appoints finance and planning director

Non-conforming mortgage lender Platform Home Loans has appointed Andrew Davidson to the new role of finance and planning director. Davidson joins Platform after being at Merrill Lynch Investment Managers for ten years. In his final role there, as director and head of institutional operations, he managed 140 staff and was responsible for the international equity […]

Guarantees in the retirement income market

Lorna Blyth, Royal London  Do guarantees benefit customers and, if so, when? To answer this conundrum we commissioned Millimans, a global actuarial consulting firm, to conduct an independent review of the UK retirement income market and whether guarantees really do offer customers better value for money. The brief The study was one of the most comprehensive undertaken […]

Newsletter

News and expert analysis straight to your inbox

Sign up