Protection providers urged to offer incentives to existing clients

The networks say existing policy holders are being penalised for staying loyal to their current provider, and brokers therefore often have to cancel protection policies and take out new ones so that their clients can access new incentives and add-ons.

In H1 2016, the number of polices sold by advisers in the UK increased by 3.3% on the previous year. First Complete and Pink say providers are offering more interesting and valuable add-ons for new customers in response to this increasing demand.

Toni Smith, Sales Operations Director at First Complete, commented: “Brokers have a duty to find the right deal for their clients and review policies on a regular basis. Not only to ensure the policy continues to match their client’s needs, but also to ensure they are receiving true value for money.

"In order to maintain best consumer outcomes, brokers therefore often have to cancel protection policies and take out new ones so that their clients can access new incentives and add-ons that as an exiting customer they wouldn’t be eligible for.”