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Press comment: Understanding the protection gap and how to fix it

06/09/2018

If you are covering today’s discussion paper issued by The Financial Services Consumer Panel, which explores why there is a protection gap and its recommendations for how to tackle the problem, please see the following comment from Paul Roberts, head of protection at Old Mutual Wealth, part of Quilter plc:

Paul Roberts“The discussion paper from the Financial Services Consumer Panel today further compounds the view that if the protection gap is going to be closed, the industry needs to do more to simplify, overly complex industry and medical jargon for clients in a bid to make these products more palatable to the masses.

“Just this week, The Academy of Medical Royal Colleges said that correspondence from doctors to patients contained far too many medical terms opposed to plain and simple English. The protection industry needs to take note of this decision and do more to make sure the language which surrounds protection products firstly doesn’t put advisers off offering them to their clients and secondly that those clients are in turn not deterred by the same complexity.

“The paper recognises that critical illness protection is one of the easiest types to understand. However, even more can be done to simplify this type of product. Some providers currently produce a plain English guide for clients, an industry standard version of a plain English guide to critical illness would help to remove any possible confusion for consumers and give them a verified resource.

“If these types of ideas could also be applied to income protection, we may be able to go some way to reducing the protection gap and make sure people are covered for every eventuality.”

For more information contact

Alex Berry023 8072 626007741 151931alex.berry@quilter.com

Notes to Editors:

About Quilter plc:

Quilter plc is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

Quilter plc oversees £95.3 billion in customer investments (as at 31 March 2020).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset investment solutions; and discretionary fund management.

The business is comprised of two segments: Advice and Wealth Management and Wealth Platforms.

Advice and Wealth Management encompasses the financial advice business, Quilter Financial Planning; the discretionary fund management business, Quilter Cheviot; and Quilter Investors, the Multi-asset investment solutions business.

Wealth Platforms includes Old Mutual Wealth UK platform and Quilter International, including AAM Advisory in Singapore.

The Old Mutual Wealth Heritage life assurance business was acquired by ReAssure Group Plc on 2 January 2020.

Since its IPO in June 2018, Quilter plc’s businesses have progressively rebranded to Quilter, as follows: 

  • Quilter Financial Planning (previously Intrinsic)
  • Quilter Private Client Advisers (previously Old Mutual Wealth Private Client Advisers)
  • Quilter Financial Advisers (previously Charles Derby Group)
  • Quilter Financial Adviser School
  • Quilter Cheviot
  • Quilter Investors
  • Old Mutual Wealth (becoming Quilter Investment Platform)
  • Quilter International (previously Old Mutual International)

This press release is for journalists only and should not be relied upon by financial advisers or customers.

Please remember that past performance is not a guide to future performance. The value of investments and the income from them can go down as well as up and investors may not get back any of the amount originally invested. Exchange rate changes may cause the value of overseas investments to rise or fall.

This communication is issued by Quilter plc.  Registered office: Millennium Bridge House, 2 Lambeth Hill, London EC4V 4AJ, United Kingdom. Registered number: 6404270.  Registered in England.