According to figures from Swiss Re's 'Term and Health Watch' Report, there was a 31% drop in individual critical illness policy sales from 1,066,262 in 2003 to 736,671 last year. Individual income protection business fell by 25% to 162,061, while term assurance is down by 17% to 1,767,208.
There is a concern in the industry that this area could lead to mis-buying as people might be sold inappropriate products without advice through execution-only channels.
Our view
This is a worrying trend. The reality is that people do need to insure for certain types of risks to protect themselves, families and businesses.
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