Learning Material Sample

Financial protection

1. Consumer and market factors and trends relevant to financial protection

Learning outcome 1: Understand the consumer and retail market factors and trends relevant to financial protection

Course content

The course material consists of:

11 chapters of study text

Several test your knowledge questions in each chapter

Audiovisual presentations and audio for chapters 1, 2 and 4 to help get your studies off to a flying start

Revision assessments for each chapter to help confirm your understanding.

Each chapter cove...

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...lose the revision test widow and continue with the course.

CPD credit

You will be credited with the CPD times listed within the revision test sections. This will be added to your CPD certificate when you complete each assessment. Your CPD certificate can be viewed and printed from the CPD certificate link on the left hand menu at any time.

As well as acting as training module to help you pass the exam this online course can also be used for CPD.

This document (PDF) contains details of the course content.

By studying each chapter and then taking the end of chapter assessment this will create an entry on your CPD certificate containing:

Your personal details

Course name

Chapter name

Assessment results for each chapter

Estimated CPD time for each chapter.

After taking a chapter assessment if you go to the CPD certificate link you can produce a CPD certificate. By selecting the date filter you ca...

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...evel 4 qualification.

If an SPS is removed from an adviser, the FCA could levy a fine on them, suspend them or even decide to remove their approved person status, although it could also agree to an action plan to be undertaken before reinstatement.

FCA monitoring

Firms are obliged to inform the FCA if any of their advisers fall below its competence or ethical standards.

The FCA collects information about individual advisers, such as the qualifications they hold and which accredited body they use. The FCA uses this database to help identify the highest risk individuals.

Chapters 1, 2 and 4 also contain audiovisual presentations an...

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...audiovisual presententation opens in a new window)


Financial protection has been the cornerstone of the financial services industry for many hundreds of years. The concept of insurance is a form of ri...

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...r the financial protection market. This chapter considers these changes and how the financial protection market has adapted to meet these challenges.
All risks can be catergorised by assessing the severity of the impact and the probability of occurrence. Once assessed decisions can be taken as to whether the risks can be managed, e.g. by taking preventative action or where the impact can be met out of available resources, or insured, e.g. where the likelihood of the event is low but the financial impact could be high.


Fred and Freda are married with 4 children. Fred is 40 and in g...

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... of insurance would also be a factor. In some circumstances it may not be cost effective for the product provider or for the client to insure a risk.

Lucy is a make-up artist working in the film industry. Her working pattern is irregular, usually 3 – 4 months of work at a time followed by periods of unemployment. Comment on the feasibility of insuring Lucy against the impact of unemployment.


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The social and economic landscape of the UK has changed drastically over the last 50 years and continues to evolve. The traditional lifestages that most people would have expected, i.e. childhood, education, marriage, children and retirement are no longer typical as attitudes to marriage, divorce, sexuality, equality and bringing up children have all changed.

Changing demographics have meant that the attitudes to in...

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...udes and behaviours. Swiss Re conduct consumer research each year, the findings of which are summarised in their annual Insurance Report. This provides a valuable insight into public opinions and perceptions of the Insurance Industry and a study of historical reports can identify changes and trends.

What impact have changing family dynamics had on financial planning?


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The UK is the third largest market for life insurance in the world, however Swiss Re has calculated that the Protection Gap (shortfall in the amount required to maintain the current standard of dependents) is currently £2.4 trillion. The deficit is due to many factors including limited budgets, personal vie...

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... a knock on effect on the number of life and CI products that were sold for mortgage protection.

Economic Factors - the level of income and inflation will have an effect on the level of disposable income available.

What is the “Protection Gap”?


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Our general standards of living have improved dramati...

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...abilities this will also present underwriting issues.
The main factors which have recently effected product design and pricing are the use of health and lifestyle factors and the use of technology to set pricing policy.

Smoker/non smoker rates - there is strong evidence to show that non-smokers have significantly reduced mortality and morbidity when compared with smokers. Substantial discounts have therefore been offered for non-smokers.

Preferred life policies - a...

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...rs can obtain and compare prices much more easily, putting additional commercial pressure on the product providers.

One important change is that from 21 December 2012, due to the EU gender Directive, no insurer is able to charge different premium rates for males and females.

What impact have improved mortality rates and cheaper premiums had on underwriting practices?


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The protection market in ...

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... other unforeseen events.

NOTE - These questions are designed for revision purposes only and are therefore n...

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...etake the test then additional CPD time for the test will be added to your CPD certificate.

About Demo Courses

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