Affinity groups the future for protection - Cuna

clock

The protection industry needs to look to affinity groups if it is to grow the market in the face of a lack of public trust, Cuna Mutual has said.

Paul Walsh, CEO of Cuna Mutual Group, said churches, credit unions, professional associations and societies all have a part to play if protection markets are to grow.

Talking to COVER, he said: "This sector has collapsed due to its inability to change and due to scandals.

"The £8bn PPI market is not going to return, the consumer has been lost as we have deceived people we needed to protect.

"However we are genuinely seeing a return to family and community values and this is being accentuated by a lack of general trust in financial services.

"People trust affinity groups they are a member of and will buy protection through them, as long as the products are equal to or better than directly available products."

He added that the reorganisation of protection needed to be consumer driven, not lender, broker or insurer driven.

"The way forward is to take existing products, to re-engineer them, to re-cost them and to bring them back to market through other pathways," he said.

"We need to become what Intel is to computers, embedded, only for affinity groups."

He added that an imbedding of protection into other financial products was another route back into the market, noting that he was aware of a lender looking for a fair and honest way to protect first time buyers through integrating cover as an integral part of the mortgage loan.

More on Insurer

Leveraging workplace health for economic growth

Leveraging workplace health for economic growth

Solving economic inactivity

Rebecca Ward
clock 06 November 2024 • 3 min read
New non-exec director for ABI

New non-exec director for ABI

Sacha Romanovitch takes the role

Cameron Roberts
clock 04 November 2024 • 1 min read
Iress adds Zurich to The Exchange platform

Iress adds Zurich to The Exchange platform

Adopts ex-smoker questions

Jaskeet Briah
clock 24 October 2024 • 1 min read

Highlights

COVER Survey: Advisers damning of protection insurer service levels

COVER Survey: Advisers damning of protection insurer service levels

"It takes longer than ever to get underwriting terms"

John Brazier
clock 12 October 2023 • 5 min read
Online reviews trump price for young people selecting life and health cover

Online reviews trump price for young people selecting life and health cover

According to latest ReMark report

John Brazier
clock 11 October 2023 • 2 min read
ABI members with staff neurodiversity policy nearly doubles

ABI members with staff neurodiversity policy nearly doubles

Women within executive teams have grown to 32%

Jaskeet Briah
clock 10 October 2023 • 3 min read