1. Mark Moran Director of Intermediaries
‘Funeral planning – a growing market in a non-regulated world. Should we be concerned?’
Mark Moran
Director of Intermediaries

2. Ambition… …for funeral plans to be seen as an important part of the protection advice process

3. Regulation of funeral planning
Regulated by the FCA under RAO 2001
Providers exempt from regulation provided monies invested in either a Whole of Life insurance arrangement or a Trust
All plan providers operate using exemption
Funeral Planning Authority provides voluntary registration
Members include
Co-op
Dignity
Golden Charter
Perfect Choice
Golden Leaves
Avalon

4. Key benefits of a funeral plan
A thoughtful way to plan ahead and make things simpler for your family at a difficult time
When required, one phone call takes care of everything
Offers you the opportunity to specify and tailor your wishes giving you and your family peace of mind
You can specify all your wishes such as music, readings and type of service
Give your family reassurance that the funeral directors costs will have already been taken care of
You will know in advance who your funeral director is

6. * Sun Life Cost of Dying Report 2017
Trends
Increase in ‘David Bowie’ style funeral
10% of funeral directors (FDs) received requests for cremation only funerals (average cost £1,835)
Rise in eco funerals % %
Reduction in religious funerals
68% of FDs saw drop in requests for religious services
Increase in ‘celebrations of life’
82% of FDs saw move away from mourning to celebrating
Half of all funerals now include modern songs, music or anthems
Benny Hill music!
‘Ding Dong the Witch is Dead’ from The Wizard of Oz
‘Another One Bites the Dust’ by Queen
Another had only Cliff Richard songs throughout the service…..
* Sun Life Cost of Dying Report 2017

7. FPA registered firms only
Funeral Planning
A growing market…
FPA registered firms only

8. What’s fuelling the growth…
Greater focus from established providers
Explosion in data market
Google the term ‘funeral plan’, hugely competitive market for funeral related search terms
New entrants to market – funeral planning companies, non-FPA registered
Volume plan sellers, many from debt / PPI background
Expanded routes to market
Funeral directors
Intermediaries
Direct to consumer
Retail/ shopping centres

9. Recent press coverage

10. Fairer Finance Report Main themes……
Uncertainty regarding what’s included in a plan
Fully guaranteed plan
Allowance for third party costs
Worry that there will not be enough to pay for the funeral
Poor sales practices
Cold calling
Pressure selling
Belief that FCA regulates funeral plans
Concern around security of plan holders monies and what happens if a plan provider goes bust

11. Addressing the challenges ahead
Driving awareness of FPA registered plan provider business models
Helping consumers and intermediaries understand what’s important when choosing a funeral plan provider
Dealing with increased press coverage
Need to extol benefits of a funeral plan
GDPR
Embracing increased regulation in whatever form

12. The key questions to ask any provider
Is the plan provider registered with the FPA and signed up to their Code of Conduct?
Where are my clients’ monies protected?
What funeral directors do you deal with?
Do you allocate my client’s plan to a specific funeral director when the plan is arranged?
Does your provider encourage your plan holders to contact the funeral director?
What happens to plan holders’ money if the funeral is carried out by another funeral director?

13. What makes Golden Charter different?
We’re owned by funeral directors
We exist to support the independent funeral sector
Importantly, we allocate plans at outset
We create a contract between plan holder and funeral director
Plan holder wants to know who’ll be performing their funeral
Our Trust is completely independent of Golden Charter Ltd
Plan holders monies are ring-fenced within our Trust, valued at £936m (March 2017)
Transparency on average plan value in Trust
FPA registration, adherence to Rules and Code of Conduct
Rigorous assurance/ compliance processes monitoring sales quality across entire business

14. Summary
A product that provides real benefits to the planholder and their survivors
Should be an important part of the advice process
Low barriers to entry for sellers and providers
Regulation is an issue that won’t go away
Always an emotive subject with increased ‘noise’ at government level
Choose a plan provider wisely!

15. Thank you for listening