Intermediaries queried corporate deductible PMI products today at an educational seminar held by WPA in London.
The lack of providers active in the area, provider cover for potential retrospective product problems and long-term contract options were the main aspects discussed.
Attendee Soraya Chamberlain, head of business development at Punter Southall, asked if WPA would consider following Aviva's offering and include cover for any retrospective product liabilities.
Rachel Riley, head of new business at WPA, said: "We think the liability has to stay with the company and I do not think this product will go backwards. I cannot see where there would be any retrospective problems."
Chamberlain then queried the target market and why take-up seemed to be holding back.
Riley explained that deductible worked for groups too small or risk averse to go into trust, and had been aimed at 200-employee-strong and upwards.
She added: "Take-up is not setting the world on fire but we are happy with the numbers we have got. And there are some uncertainties with some in the tax situation. People are also asking - ‘why is no-one else doing it?'"
Riley presented the HMRC and P11D-form stance, adding: "I can see this may be an area of concern around agreeing with the tax office but there is no devil in the detail. This concept has been around for a while, it is just new to this market."
She said WPA had national level clearance from HMRC and specialist-tax council supporting opinion on P11D.
Attendee Linda Tresidder, national sales manager at Premier Choice Group, asked about long-term benefit options, to which Riley responded: "There will be no long-term options, the contracts will be annually renewable."
