Scheme for national protection being discussed

Thursday, May 20, 2010

The Association of British Insurers (ABI), the acting trade body of the insurance industry, is currently organising talks to advance a national protection scheme.

They have put the process on a fast track in order to ensure that it is ready to work with the new coalition government and its protection strategy as soon as possible.

They have set up a number of industry work groups in order to evaluate new proposals for how the insurance industry is structured.

The first of these groups will be aiming to explore ways of lessening the inherent difficulties and administrative burden of life cover on death. Whilst another group will look at ways of creating a society that is more resilient to risk.

The third group will be aiming to increase and perhaps improve consumer engagement with the insurance protection market.

All of the UK’s biggest players in the life insurance industry are involved in the on-going plans which may also include a protection scheme that incentivises households earning over a certain amount in-order to protect themselves, fairly similar to the NEST scheme set up by the government.

It is hoped that these plans will help build a more resilient society with greater protection and savings that will also help to determine the use of scarce resources for those on lower incomes.