At CIExpert, advisers can compare intermediated protection plans alongside white-label and direct-to-consumer (D2C) versions. Some users question why we include this functionality. The answer is straightforward: many insurer white-label and D2C products differ from those available through advisers, and understanding those distinctions is essential.

 

In many cases, D2C propositions are simplified versions of adviser plans. The same pattern is often seen on aggregator websites, where emphasis appears to fall more heavily on price than on breadth of cover. As a result, core policies are commonly displayed, while more comprehensive variants are less visible.

 

Premium positioning can also vary significantly. A recent check on MoneySuperMarket showed an Aviva policy priced at £120.44 per month. By comparison, Aviva’s core plan available via advisers was £100.30 per month, while the enhanced upgraded version was also lower at £113.02 per month.

 

Insurers and comparison platforms are, of course, entitled to structure and price policies as they see fit, reflecting commission terms, ancillary benefits and anticipated volumes. However, consumers may not appreciate how these variables affect both premiums and product design. Where no advice is given, the responsibility rests squarely with the purchaser.

 

Premium differences are not confined to insurer D2C channels. Nationwide and Barclays both distribute Legal & General policies with identical core plan designs. Yet online quotations reveal a marked disparity: £117.65 per month via Barclays compared with £177.65 per month via Nationwide. The difference arises because, although a decreasing term structure was requested, Nationwide combines decreasing life cover with level critical illness cover.

 

Santander, single-tied to Aviva, offers a policy broadly comparable to Aviva’s adviser core plan. While it includes a small number of additional payment conditions, these are capped at the lower of £20,000 or 20% of the sum assured. By contrast, the adviser core plan provides £25,000 or 25%, and the upgraded adviser version offers £30,000 or 100%. The Santander premium of £140.67 per month also compares unfavourably with the adviser-only equivalents — £100.30 for the core plan and £113.02 for the upgraded option.

 

This is precisely why we include white-label and D2C comparisons within CIExpert. Advisers are able to demonstrate, clearly and objectively, how policy design and pricing can differ. Many clients may have arranged cover through a bank, building society or supermarket without advice and without the safeguards associated with advised sales. Being able to show that benefits can be enhanced while premiums are reduced provides tangible evidence of professional value.

 

Another area that warrants scrutiny is the interest rate assumption used for decreasing term plans. Adviser platforms — including CIExpert — typically default to 8%. Aggregator sites often use 7%, with at least one insurer adopting 5%. Lower assumed interest rates reduce the quoted premium and may appeal to price-driven consumers, but they alter the underlying structure of the cover.

 

As with income protection, we believe critical illness policies are best arranged on an advised basis to secure appropriate outcomes and meet Consumer Duty expectations, including the requirement to demonstrate fair value.

 

 

CI Expert