Here is a copy of an email from Joanne Scott of Swiss Re, with a link to this new report.
Hi please find attached a copy of our latest report Life cover pay outs – under the microscope, published jointly with Ruth Gilbert from Insuring Change.
This report examines policy ownership and trust uptakes in the market, now viewed through the lens of the FCA’s Consumer Duty. It provides updates on the issues raised in our previous reports, Life cover payouts: changing direction (February 2021) and Trust registration and unintended consequences (November 2019).
Overall, the proportion of all new single and joint life policies placed in trust has been going up since 2018 and increased to 12.6 % of all level and decreasing term policies in 2021, up from 11.3% one year before. However, in absolute terms the number of single life policies not in trust is still increasing. We continue to see a growth in sales a positive overall, but this has meant more non-trust cases were set up in 2021 than in previous years, adding 56,000 more policies than in 2020.
The implementation of the Consumer Duty shines a light on the importance of making sure policies are set up to ensure that the intended beneficiaries receive the proceeds of a policy swiftly, through a trust or other solutions like beneficiary nomination. Please let me, Ron Wheatcroft know if you have any questions or would like to discuss the report in more detail.
Below is a link to the full report.
