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Defaqto insights and industry news

Below you'll find insights from our research experts and analysts along with industry and market news

Giving consumers control could help you overcome the FSA’s changes to packaged current accounts

15 February 2012

Packaged current accounts offer consumers a range of different incentives such as insurances, retail discounts, cash back and identity theft assistance in exchange for a monthly fee.

Home insurance features and benefits can enable providers to stand out in a busy market

10 February 2012

Mike Powell

Increased competition and the rise of consumers who are willing to research and purchase policies online without consulting a professional means that providers need to focus on more than just price when selling home insurance.

2012 Star Ratings and a feature-led approach can help consumers understand their financial products better

01 February 2012

Price pays a huge part in many consumers' decision making process when choosing a financial product. However, our research shows that 49% of consumers don't necessarily understand the features they have on their financial products.

Defaqto research highlights that consumers need professional advice to help with their financial planning

11 November 2011

Only 11% of people are very confident that their pension will meet their retirement needs, while just 23% of under 35s currently own a pension.

Pet insurance policies are beginning to differentiate over alternative treatments

23 September 2011

The pet insurance market has more than 740 products currently available, with each provider looking to improve their product, simply by, differentiating and providing added value for consumers. One such feature of differentiation is alternative therapies.

What are the major developments in travel insurance policies?

23 June 2011

The travel insurance market has struggled after one of the deepest recessions in UK history and the fragile economic climate. There have consequently been a couple of developments in the cover policies provide. They have incorporated some of the hazards and events that holidaymakers could experience in this day and age.

Is the travel insurance market split into just two propositions?

23 June 2011

Mike Powell

The travel insurance market is vast and also one of the most congested, with a number of financial and non-financial providers supplying their customers with varying levels cover.

An oversupplied travel insurance market is causing confusion.

23 June 2011

Mike Powell

2010 saw the industry suffer further as the number of people from the UK travelling overseas fell by 7.4% compared to 2009, this means there has been less opportunity to sell travel insurance.

Are tax wrappers seen by advisers as the simple trading solution?

18 May 2011

Fraser Donaldson

According to our recent research with approximately 200 advisers, the majority of still consider platforms as a simple trading solution, with more than 70% of invested assets allocated to unwrapped collectives or individual saving accounts (ISAs).

RDR policy uncertainty is proving to be a distraction

18 May 2011

Fraser Donaldson

One area of uncertainty is around platforms, as it is going to be difficult to create a ruling that stays true to the RDR’s objectives, while also looking after the financial wellbeing of the consumer. The problem with creating a platform specific policy implemented to regulate all funds, products and investments, is that it could be detrimental to the consumer.

Corporate wraps: a proposition worth being concerned about?

18 May 2011

Fraser Donaldson

2010 saw the emergence of corporate wraps, believed to be a result from the demise of the final salary scheme, in attempt to replace the fees earned there.

Is outsourcing investment a discretionary option?

18 May 2011

Fraser Donaldson

One area of uncertainty is around platforms, as it is going to be difficult to create a ruling that stays true to the RDR’s objectives, while also looking after the financial wellbeing of the consumer. The problem with creating a platform specific policy implemented to regulate all funds, products and investments, is that it could be detrimental to the consumer.

Ruling on Gender Directive: don't leave rate reviews too late

10 March 2011

Ben Heffer

The European Court of Justice (ECJ) has now made a ruling on the EU Gender Directive and, as a result, insurers will no longer be allowed to set different premiums for men and women from December 2012.

The ABI+ race begins...

16 December 2010

Ben Heffer

In product development terms we have seen a continued focus on critical illness cover in the protection arena. There has however been a change of marketing tack with the focus shifting to differentiation by improving definitions vs. a focus on conditions.

Time for a buy to let mortgage

14 December 2010

Rightmove reported that in November, sellers cut their asking price by 3.2% and that there was a 9.1% reduction in the number of new sellers. They also reported that the number of new sellers outstripped the number of mortgage approvals by 2 to 1.

Rise of the 'super aggregator'

14 December 2010

Mike Powell

Our forthcoming aggregator report highlights that the number of aggregator websites is declining but the dominance of ‘super aggregators’ is rising. Although this distribution channel poses a number of challenges to the industry, we still believe products should continue to be developed for consumers who purchase cover through this channel.

Challenges facing income protection

04 November 2010

Ben Heffer

On 14th October the Competition Commission published its decision to implement the controversial point of sale prohibition (POSP) for payment protection insurance. This presents growth opportunity for short term income protection (STIP) but some challenges for traditional income protection.

Suitably packaged?

04 November 2010

We are still awaiting the publication of the Financial Services Authority's (FSA) investigation into packaged current accounts amid concerns that elements of the account were unsuitable for consumers.

Too much confusion, too much choice

04 November 2010

Mike Powell

Our data is telling evidence that travel insurance appears to be one of the fastest and easiest products to bring to market. There are currently 1,079 travel policies from 224 distributors. This is an uplift of over 16% and 27% respectively from 2009.