SUMMARY: A recent review of Critical Illness Cover (CIC) by the FSA ( remortgages ) unearths some growing fears from consumers.
Critical Illness Cover to evolve after review . Page 2
By Melinda Varley
Before making a recommendation to buy CIC, most intermediaries
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Most firms also had reasonable controls to manage the risk of mis-selling. For example, they had good training programmes and risk based compliance monitoring.
Other products were also considered with the evidence that advisers often considered whether or not there were other protection products that might better meet the customers' needs.
Because of the way CIC is sold, customers have time to reflect on their options before they buy, as with prime mortgage payment protection products. This helps to reduce ( life insurance quotations ) the risk of making the wrong choices or buy in haste because their attention is on another product they are purchasing.
The findings are based on supervision visits to 42 firms. These were mainly ( home insurance quotes ) mortgage and financial advisers, but also included banks, building societies and insurers. A market research company, Research International, was also commissioned to carry out 80 mystery shops across a total of 51 firms to look at what happens in practice.
The review of the sales of CIC is one of several thematic ( life insurance quotes ) projects looking at the advice and information being given to retail customers when they buy financial products.