The regulator cracks down on misleading ads… at last!
News this week has focused a great deal on regulatory bodies safeguarding consumers. One such topic was the FCA blocking thousands of misleading ads in 2022.
Another regulator, The Advertising Standards Agency (ASA) has recently taken action against several lead generators in the protection industry for making misleading and exaggerated claims about their services.
The ASA found that these false claims were causing confusion among customers, who were being misled into thinking that they were getting a better deal on insurance products than they actually were. As a result, the ASA has acted against several lead generators, requiring them to remove the misleading claims from their websites and advertising materials.
In addition to taking action against misleading claims, the ASA has also called on lead generators to be more transparent about the fees they charge insurance providers for generating leads. This will help customers understand the true cost of the service and make informed decisions about whether to use the lead generator or not.
The action taken by the ASA is a welcome move and frankly long overdue. We hope that it will go some way to restoring at least some confidence in the protection industry and ensure that customers are no longer misled by false claims. It also highlights the importance of transparency and honesty in advertising, and the need for lead generators to be more responsible about the claims they make about their services.
The outcome is positive and hopefully this will lead to a wider crackdown in this space. The callous and aggressive tactics of some lead generators have blighted this industry and if we are to restore any semblance of trust they need to be far better regulated.
Last week on ProtectionGuru
Whether it is low cost products, comprehensive products or specialist products, AIG have a wide range of products to help you to find the right solution for your client. We started the week by highlighting how AIG products suit your clients’ needs.
There’s no doubt that money makes a huge difference to families that are caring for a critically ill child. An insurance payout through the children’s element of a critical-illness policy gives these families options that can make their lives easier and more comfortable. Taking the financial pressure off enables these families to spend time with the child without worrying about working to pay the bills and perhaps being able to afford treats to create special memories that give everyone a lift. On Tuesday Amanda Newman Smith set out how Legal & General are giving critically ill children a reason to smile.
On Wednesday, Adam Higgs investigated what the differences between income protection term and benefit payment periods are? When recommending an income protection plan, selecting the right policy term and benefit payment period are crucial in ensuring the client is adequately covered. These two elements of the policy can sometimes however cause confusion, particularly when it comes to the benefit payment period and some of the short-term options available.
On Thursday, we recaped our January forum where we explored how we can better engage consumers. In the second half of our January forum, we invited a number of advisers to discuss what both advisers and insurers can do to better engage consumers in 2023 both from a new business and existing client perspective.
Our regular Protection Forum is an opportunity for advisers to come together and discuss topics and issues that are important to them and the industry. Attended by a large number of advisers, as well as insurers and other industry professionals, our aim is that through the forum we can collectively drive improvements to products, processes, standards and ultimately, consumer outcomes. On Friday, we took the opportunity to look back at our December and January meetings and recap the important and varied topics discussed.
Have a great week everyone.
