The pre-paid funerals market has had a huge shake up over the past year with a number of former players leaving the industry as a result of financial regulation. So, what does this mean for consumers?
Steve Wallis, MD of direct cremation provider, Distinct Cremations, says that regulation by the Financial Conduct Authority (FCA) in July 2022, has brought about positive change.
“After the shock waves caused by the collapse of providers like Safe Hands and Unique Funeral Plans, trust amongst the public towards funeral plan providers is once again returning as a result of FCA regulation now being a requirement to trade.
“Those providers unwilling or unable to meet the tougher regulatory requirements have exited the market and their plans were mostly acquired by larger, more established companies.
“The new rules have contributed to industry consolidation and reduced the number of players in the market, but ultimately ensure consumers’ plans are safe now and, in the future, because providers are now held to a higher standard.
“Cold calling has been outlawed, as has the payment of overblown commissions.
“People now have peace of mind. If the worst were to happen, they are now protected by the Financial Services Compensation Scheme (FSCS) – meaning their plan and money are protected in the event that a provider fails.”
Cannock-based Distinct Cremations is a leading provider of direct cremation services. They have seen sales of their direct cremation funeral plan – rated 5-stars by consumer champion, Fairer Finance – increase by over 300% over the past two years.
Added Steve Wallis: “People increasingly want less fuss and would prefer to leave money to loved ones, so it’s easy to see why pre-paid direct cremation schemes have become more popular.”
