“
With the current economic climate , you will find that customers may be cautious on what they spend their pennies this year , but there are still a few untapped markets in the industry for us to go at and one of the biggest is business protection .
The FCA is currently consulting on a higher level of customer protection , where we no longer compete on price , in the interest of better customer outcomes . Wellbeing is an area in which we can start to tackle this , and it is set to grow even bigger in 2022 . We have already seen a host of insurers adding ancillary benefits to their policies over the past few years and this number is increasing by the week .
In the past , just like critical illness cover , the more definitions , or illnesses , you covered , the better the plan - but that ’ s no longer the case . Customers are looking for tangible benefits that strengthen their policies and make a difference to their lives . Some of the biggest claims for these benefits come from physiotherapy and counselling , which should come as no surprise , but also benefits that cover children too . If a customer can see the value in a policy and not just a piece of paper that sits at the back of the drawer , then engagement will be higher and , in turn , persistency stronger .
“ We have already
seen a host of insurers adding ancillary benefits to their policies over the past few years and this number is increasing by the week .
“
And this is where we should be focusing as we go in to 2022 and beyond . Sales quality and retention is an area that some of the bigger insurers have been looking at for quite some time but , as we start to understand more about our businesses , the whole industry has jumped on it . Getting new customers and new business is what we get up for in the morning , however , we need to make sure we are keeping as many of those policies on the books as possible .
Once we have gone through the protection sale , quotes and processing we still have the underwriting and acceptance of terms to get through so why , after all that work , would we let the policy cancel or lapse ?
One of the main reasons that customers cancel is because they do not see the value in what they have purchased , or truly understand how it will benefit them . This can easily be solved during the sales process by getting to know the customer and demonstrating how their protection can ease their financial burdens should they be struck down with an illness . We can add value by writing policies in trust , and this will have a positive impact on maintaining persistency . It has been shown that customers that have trusts in place keep their policies for longer and stay with the same adviser because of the level of service they have been given by an expert ; things which they cannot get online .
“
Getting new customers and new business is what we get up for in the morning , however , we need to make sure we are keeping as many of those policies on the books as possible .
Regular reviews will also maintain the relationship with each of our customers and as they go through their life cycle you will be on hand at every twist and turn to support them and their financial advice requirements .
8 | THE PROTECTION ADVISER