Speaking at the 2015 Protection Review in London, Ward said that the value chain in protection was not working, with value “not sitting in the right places”.
In a panel debate entitled ‘Will new distribution models grow the market?’ Ward argued that the protection market could not grow unless commission levels were higher.
“The value chain is all wrong in protection, we’ve got IFAs taking value, we’ve got insurers taking value and we’ve got reinsurers taking value, and in my opinion the value is not sitting in the right places,” Ward said.
“The commissions are not high enough. You cannot grow the protection market unless you pay more commission to allow us to market more and experiment more.”
Ward added that the sector needed improved regulation to improve the customer experience and boost adviser engagement.
“We need more regulation because current regulation is not regulating the things that matter. We’ve got too many lead generators saying things that aren’t true to customers. If we paid agents twice the commission they get for an advised sale and leave non-advised sales’ commission where it is, you’d get more adviser business and they would go out and sell it.
“I think we need a better regulator and we need one that changes the emphasis. My great idea for a regulator would be one that cares about protection sales rising rather than making sure they’re just compliant.”