While G-day has now passed it will continue to impact advice given to clients for many years to come. The future treatment of existing policies will vary from insurer to insurer.
Advisers will need to know about important issues when making changes to existing plans to manage the process smoothly and also when considering whether or not to amend a client’s existing cover or to replace it.
The new matrix includes several key issues identified by advisers, including:
• Which plan amendments would trigger a switch to gender neutral rates for a plan in force prior to G-day?
• If a policy lapses and reinstates post G-day will cover remain on gender specific rates?
• If GIOs are exercised post G-day will cover remain on gender specific rates?
Peter Chadborn, an adviser at IFA Plan Money, said: “The original G-day matrices from F&TRC provided a valuable tool for us in the run up to G-day.
“Insurers came up with a myriad of competing rules and processes and so having a single source of reference saved us considerable time.
“In the future it will become difficult to track and record each provider’s rules regarding issues such as policy amendments and so being able to have a similar matrix which summarise the rules for existing business will also be a huge help.”
Protection Forum, which includes a range of protection advisers, life offices and reinsurers, discussed a range of concerns regarding G-day at the group’s last meeting in November and agreed to compile further tools and matrixes in 2013 based upon feedback from advisers.
F&TRC managing director Ian McKenna, said: ““The rush to process protection applications in time for G-day is now over however the subsequent impact for advisers and their clients will continue for many years, if not decades.
“This new matrix is the first of our next generation of long term matrices, which in time will cover all areas of financial services.
“Our aim is to provide a central access point where advisers can compare and contrast information from a full range of providers in a single location.
“The information in the system is populated by life companies and updated in real time so providers can update this at any time for any given issue changes.”