CIExpert has launched the Single is Best campaign calling on the protection industry to advocate and actively encourage the recommendation of individual protection plans as the preferred option for couples and to require justification for the recommendation of joint life first event plans.
CIExpert maintained that joint life first event protection plans are “largely obsolete” in today’s world, “delivering inferior consumer outcomes and lower levels of fair value”.
It added that it believes that a Consumer Duty-based compliance process should default to recommending two single plans for couples and that advisers should be required to justify any recommendation of joint policies, clearly outlining the benefits that clients may forgo with this “cheaper” option.
CIExpert has created a report to raise awareness of the benefits that two single policies offer; to make the case clear that they represent greater value, more flexibility, and better quality of protection, particularly in today’s Consumer Duty environment.
The report addresses the common objection that a joint policy can be cheaper, with data supplied from Iress which analysed more than 300,000 quotes.
It illustrates how the cost difference is marginal and clearly outweighed by the benefits.
But CIExpert’s Critical Thinking Report found that 43% of consumers assumed a joint policy would be the best option for them if they took CIC, while a further 33% were unsure.
It added it was also concerning that data from Iress shows that 25% of advisers quotes are for joint policies, and that 61% of advisers frequently recommend joint policies for mortgage coverage – even though only 19% of consumers prioritise mortgage debt repayment when making a claim.
The campaign is based on many points and evidence which can be found in more detail at ciexpert.uk/singleisbestcampaigndoc
This inspired CIExpert to begin a campaign to encourage distribution firms, advisers, providers, and other industry influencers to join the movement.
It already has backing from industry leaders including:
- Johnny Timpson, OBE
- Jeff Prestridge, personal finance editor at Associated Newspapers
- Roy McLoughlin, director at Strategic Partners
- Vicky Churcher, non-executive director at Cirencester Friendly and co-chairwoman of the Income Protection Task Force (IPTF)
- Neil McCarthy, chairman of Protection Distributors Group
- Emma Thomson, chairwoman and director of Women in Protection Network
- Tony Mudd, divisional director, development and technical consultancy at St. James’s Place
- Phil Cleverley, chief underwriter at SCOR Life & Health
- Steve Casey, marketing director at Square Health
- Christine Husbands, commercial director at RedArc
- David Mead, head of protection at St. James’s Place and founder of FutureProof
- Emma Vaughan, head of protection and health solutions at SimplyBiz
- Ruth Gilbert, partner at Insuring Change
- Kevin Carr, MD at Carr Consulting & Communications and Protection Review CEO
- Peter LeBeau, managing director at Le Beau Visage and Protection Review founder
- Roger Edwards, Roger Edwards Marketing and marketing director at Protection Review
- Paul Reed, director and protection specialist at Vita
Alan Lakey, director at CIExpert, (pictured) said: “We strongly believe an industry shift is needed to prevent consumers from holding suboptimal policies for marginal savings.
“There are very few instances where joint life plans can deliver a better customer outcome than two individual plans.
“A Consumer Duty-based compliance process should default to recommending two single plans for couples, and advisers should be required to justify any recommendation of joint policies, clearly outlining the benefits that clients may forgo with this “cheaper” option.
“It’s clear that whether intended or not many compliance processes put the emphasis on explaining why the cheaper option is not being recommended and becomes an additional hurdle for advisers.
“Last year, in a meeting with FOS, this was one of the examples that we shared with them to test their view.
“They were clear that they did not favour cost over value as long as the suitability letter reflected the clients being given a choice and confirmation that a discussion took place and the client’s were agreeable to single life plans.
“We have already received support from key figures in the industry and we now want to reach further and ask more advisers, firms and networks to sign up to our “Single is Best” pledge.
“This is something that advisers can support to drive real change.
“By adding their name they will join a growing number of advisers who believe that individual Life and CIC policies should be the default choice for couples.”
Tony Mudd, divisional director – development and technical consultancy at St. James’s Place, said: “I totally support CIExpert’s ’Single is Best’ campaign and pledge.
“While there are few absolutes in life and almost always exceptions such that going with ’single is always best’ could invite, may I say singles over joint should at the very least be the default position.
“So congratulations to the CIExpert Team for producing such a compelling document evidencing all the reasons why individual plans deliver a quality based consumer outcome focussed comprehensive protection portfolios for both individuals and modern families.
Emma Vaughan, head of protection and health solutions at SimplyBiz, said: “CIExpert’s new ‘Single is Best’ campaign and pledge is a fantastic initiative that underscores the importance of addressing each person’s protection needs individually, rather than combining them for convenience or because of outdated cost assumptions.
“It’s simply not true that joint policies are significantly cheaper—any cost difference is minimal, while the benefits of tailored, individual plans are far greater and deliver better outcomes for the customer.
“It is great that CIExpert are shining a light on this, and I’m fully behind the campaign.”
Johnny Timpson OBE said: “Personally and on behalf of Surviving Economic Abuse charity colleagues you have my full support.”
To pledge support visit ciexpert.uk/singleisbest