Indexation calculation

How to differentiate providers

clock • 3 min read

Alan Lakey, founder, CIExpert explains how indexation can be a critical tool for advisers when determining the best value for a customer.

Consumer Duty imposed a clear requirement on advisers to search out value.  This does not necessarily mean the cheapest or the ‘best' plan, although, of course, it might be. One area that is often overlooked is how insurers deal with premium increases for indexation. Apart from protecting a mortgage, where there is a specific level of decreasing debt, there is a powerful argument that all other forms of personal and family protection should be shielded from the erosive effects of inflation. All insurers offer indexation options – some are linked to the retail price index (RPI) with ot...

To continue reading this article...

Join COVER for free

  • Unlimited access to real-time news, key trend analysis and industry insights.
  • Stay on top of the latest developments around health and wellbeing, diversity and inclusion and the cost of living crisis.
  • Receive breaking news stories straight to your inbox in the daily newsletter.
  • Members only access to monthly programme 'The COVER Review'
  • Be the first to hear about our CPD accredited events and awards programmes.

Join now

 

Already a Cover member?

Login

More on Adviser / Broking

Advisers concerned about rising costs and market pressures

Advisers concerned about rising costs and market pressures

Gender difference in concerns

Jaskeet Briah
clock 30 January 2025 • 2 min read
Board changes for Protection Distributors Group

Board changes for Protection Distributors Group

Undertaking a new project

Jaskeet Briah
clock 29 January 2025 • 2 min read
Are you letting clients anchor prices?

Are you letting clients anchor prices?

Leading the cost conversation

Ash Borland
clock 29 January 2025 • 2 min read