Ms Fullaway said: “Although my own network definitely does not do this, it is widely known that elsewhere insurers may have to stump up cash to get to play ball. I think everyone knows this goes on and ultimately it’s the client that suffers through lack of choice.”
Sesame and Intrinsic networks would not answer the question of whether they charged protection providers to be on their panels, despite being issued with numerous requests to do so. But Openwork proved far more transparent.
Paul Shearman, proposition director, mortgages, protection and general insurance for Openwork, said: “We tend to work very closely with providers and come to a commercial arrangement that works for both parties involving a mutually agreeable financial construction. Our aim is not to have too large a choice for advisers otherwise it becomes too complex, so it’s important to have players who would be able to manage the volumes we put through, and this would exclude smaller players.”
If deals involving provider payment are structured in a way that does not result in detriment to the consumer and are acceptable to the regulator then there is not necessarily any reason to condemn them. But the FCA does little to quash rumours that this is a subject currently very much on its radar. A spokesperson said: “The FCA is unable to comment on ongoing or potential investigations.”
Edmund Tirbutt is a freelance journalist
Key points
* Believers in the virtues of whole of market advice are quick to criticise restricted panels for only providing access to around half a dozen providers
* Some networks upset protection experts by issuing guidance on what is and is not acceptable advice for different client groups
* Advisers can go off-panel if they choose to but the process can be fairly arduous
TENET GROUP BACKS CIEXPERT
The Tenet Group network enables its members to receive a 20 per cent discount for one year’s membership of CIExpert, developed by Alan Lakey, partner of Hertfordshire-based Highclere Financial Services, to help compare and keep track of CI policies. Other networks are also understood to be considering following suit.
CIExpert, which has received excellent feedback from insurers and intermediaries since being launched in March 2012, provides advisers with a reliable and affordable set of tools to speedily identify the most suitable plan for an individual. It compares all CI plans available on the market, except PruProtect’s serious illness cover which is not technically a CI contract and is hard to compare.
Advisers simply enter a client’s name, age, date of birth, required sum assured, smoking habits and whether or not they want children’s cover included. After pressing a button, they will find all 16 available insurers ranked in terms of highest and lowest score. Two of these can then be chosen for like-for-like comparison.
