With the dust settling on the launch of the new IP product offers across the industry, we’re keen to get your initial take on how this will impact your advice proposition.
The new income protection insurance product offers reflect the dictates inherent in APRA’s IP intervention, and contain more restricted definitions in a number of areas, the sum total of which is intended to deliver a more sustainable outcome for both the product manufacturer and the product consumer (see: APRA Cracks Whip…).
But will the less expansive product offers curb the effectiveness of your income protection conversations with your clients? What are your first impressions?
We’ve already had a taste of what advisers think, when around two thirds said the removal of Agreed Value IP products after 31 March 2020 made it more problematic to provide appropriate solutions for their clients:
Back then, one adviser predicted the 1 October 2021 changes would represent a ‘disaster in the making’, especially for self-employed clients (see: Advisers Find Challenges in Providing IP Solutions).
Is this your view? Is this new set of IP product offers a ‘disaster in the making’ for consumers? Or can you work with this new ‘IP normal’? Will it be ‘business as usual’ for you when it comes to IP? Or has the value landscape now changed to such an extent to have you reflecting on how you approach this most critical conversation with your clients?
Tell us what you think and we’ll resume the conversation next week…