Dormant products drive replacement business: Adviser

Katrina Church

Katrina Church, of Insurance People, said she was concerned about the number of policies still in force in the market that had been superseded. 

“As a broker, I have got to make sure that I’m acting in the client’s best interest. We talk about churn and replacement business; I cannot sit on a product that was written 15 years ago as a trauma product when I am worried whether or not the cancer definition will get paid out,” she said.

“So the industry has got to take some responsibility for that; the carriers have to do something with their dormant product rather than let it sit and give us a reason to actually replace it. I think that has not been picked up by the regulator at all. I think the product is a lot more complicated, our client’s health is a lot more complicated.

“What I would like to see more insurers doing is not have dormant product but actually have product that will have pass-backs because it really makes our job a lot easier. The conversation about whether the product could be better somewhere else goes away and you get to have a conversation around affordability, the investment that they want to put in there and whether the cover is right and the levels are right,” she said. “That’s a better conversation to have than whether the Tower trauma wordings are up to speed.”