Regulators are always trying to protect policyholders!
They are concerned with
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Adequate information being delivered
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Advisors being biased between products depending on commission levels.
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They are concerned with any terms that can cause disputions. e.g. low surrender benefit / waiting (moratorium) period
/Some benefits not being paid / pay more than sum assured
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PRE may not be satisfied. e.g. Is inflation taken into account?
What can be done
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The sales process should note ... / and highlight
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The regulator could ban commission on all whole of life products.
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The regulatory could insist on the disclosure of commission levels for the various
products on which it advises
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The regulator could insist on periodic reviews of advice given, and fine / discipline advisors who are
found to give incorrect advice.
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Impose a maximum waiting period, or insist on a return of premiums should a claim occur
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insist on the payment of benefit if the cause is an accident
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insist on a cut-off age above which premiums cease to aviod overpayment
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insist on premiums being capped
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insist the sales process / literature makes clear that ...is not guaranteed.
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insist in options being offered