The modest-sized British Friendly has giant plans for the IP market. Its CEO Mark Myers reveals all to Paul Robertson
“I think the regulator, in particular, would take a very neutral view on the ownership model and I’m not sure it should be doing that. If we look at the outcomes that flow from mutuality, or have over the last 100 years flowed from mutuality, why wouldn’t you want to support that?”
Perhaps inevitably, long-term care is on the cards for British Friendly as a future product area.
Maybe because Myers is currently going through the system with his mother. Whatever the reason, he is the first person COVER has spoken to in a long time to show enthusiasm for a pre funded model.
Myers agreed that the immediate purchase type transaction is a “fantastic” offer, but noted that there was little anyone could do to fund early.
“The demands suddenly being placed on people are quite frightening. So a solution that allows some plurality some people can fund early, some people late – must be a good way forward.
“The current immediate needs annuity market is much smaller than the pre-funding market could potentially be. There ought to be a way in, but people haven’t cracked it yet.
“I don’t know whether psychologically people find it difficult to provide for something that’s not attractive, whether it’s nothing they’re interested in or it’s just something they’d rather put out of their minds. But the weight of evidence now is overwhelming as people are living longer, they’re seeing their parents going through it, so I think its time is coming.”
However, for the near future, Myers will concentrate on income protection as a priority.
“We are realistic about our capabilities and our ambitions. Once this is proven to work, and delivers, then we have a platform to go forward.”
Well, all in all, you can’t say fairer than that.
