PDF《Pure Protection Contracts》

other'

or '

unknown'

categories has been removed. 3. Some totals may show slight discrepancies due to rounding of figures. 4. Since

1 April 2006, all PSD reporting firms have been required to state whether customers received advice at the point of sale, therefore all analysis involving advised sales will be from this date onwards. For more information on what constitutes an advised sale, please refer to the appendix. 5. PSD does not currently include data on transactions made via fund supermarkets and nominee accounts, therefore these sales are not included in our analysis. 2. What is Product Sales Data?

3 Pure Protection Contracts Product Sales Data Trends Report In December 2005, we made a commitment to the industry to publish aggregate product sales data. We first published data in June

2007 covering the period April

2005 to March 2007. We will also be publishing equivalent PSD reports for retail investments and mortgages and further issues of these reports in the future. If you have any comments on the content of this report or suggestions on how we might improve future issues of the PSD reports please contact us at: [email protected]. We welcome your feedback.

4 Pure Protection Contracts Product Sales Data Trends Report Pure protection contracts PSD is collected for a limited number of product types (ie, products with complexities that increase the potential risks to consumers) displayed in Table

1 (please see the appendix for definitions). Table 1: Pure Protection Contract PSD products Pure protection contracts PSD only captures new sales of the products listed above. Alterations, increments and renewals are excluded. 3. What information is available from pure protection contracts PSD?

5 Pure Protection Contracts Product Sales Data Trends Report Pure Protection Contracts Critical Illness Sold as a Rider Benefit to Mortgage Protection and Term Assurance Income Protection Standalone Critical Illness Figure

1 shows market trends for pure protection contracts. It is evident that sales of Critical Illness Sold as a Rider Benefit contracts loosely mirror movements in the mortgage market. Figure 1: Pure protection contracts C April

2007 to March

2008 Source: FSA Pure Protection Contracts PSD In the year between April

2007 and March 2008, over 668,000 sales of pure protection contracts were reported on PSD, compared to 833,000 in 2006/07. Critical Illness Sold as a Rider Benefit contracts accounted for approximately 72% (484,000) of all pure protection contracts recorded. Sales of this product were down by 19% compared to 2006/07 (598,000). Sales of Income Protection contracts were down 6% from 149,000 in 2006/07 to 140,000 in 2007/08. Sales of Standalone Critical Illness contracts steadily declined in 2007/08 and were down by 49% compared to 2006/07 (from 86,000 to 44,000). 4. General trends

6 Pure Protection Contracts Product Sales Data Trends Report

5 10

15 20

25 30

35 40

45 50 Apr-07 Jun-07 Aug-07 Oct-07 Dec-07 Feb-08 Number of Pure Protection transactions (thousands)

50 100

150 200

250 Number of Mortgage transactions (thousands) Critical Illness Sold As a Rider Benefit Standalone Critical Illness Income Protection Mortgages Figure

2 shows the percentage market share by the top five providers for pure protection contracts. Figure 2: Top five providers of pure protection contracts C April

2007 to March

2008 Source: FSA Pure Protection Contracts PSD The top five providers of pure protection contracts have a minimum overall market share of 52%. For income protection products the market share of the top five providers increased to 63%. During the period,