EDITION 1 | MAY 2021
11
This vital and insightful research demonstrated clearly that two thirds of consumers feel it is important to protect their mortgage payments , yet less than a third were able to correctly identify income protection when presented with a description .
about the types of protection available and the circumstances they are able to insure , whilst also offering clarity and a belief in the claim ’ s statistics .
Only then can they make the informed decisions they have perhaps been avoiding . This vital and insightful research demonstrated clearly that ‘ two thirds of consumers feel it is important to protect their mortgage payments , yet less than a third were able to correctly identify income protection when presented with a description ’.
Some of the conclusions Robert Sinclair , reported were as follows :
1 We need to find a new way to underpin claims statistics . Our challenge is how to make these statistics more real and personable . Advisers are in a great position to speak to those customers who have had their claim paid to see if they are happy for their story to be used as a case study on websites and consumer communications . Advisers may have challenged a declined claim and had this overturned – if this has happened , we need to shout about it and make customers aware that advisers are acting in their best interests .
1 52 % of consumers felt that if an adviser suggested they get protection insurance , the motivation behind that would be to increase their commission and not to ensure they are financially protected . Breaking down this barrier , so that the value of being protected and the cost of providing professional advice can be better understood , is key . This could be by demonstrating the wider value of products . Mental health added value benefits and 24 / 7 remote GPs are great services for advisers to promote and are particularly relevant given that we are in the midst of a global health pandemic .
1 The research indicates advisers should re-consider how they raise protection . How do they view ‘ raising protection ’? Does raising protection involve simply mentioning it verbally or briefly in customer documentation ? Half of consumers ( 53 %) are unable to remember if protection was brought up by their adviser or they report , not brought up at all , but 97 % of advisers say they raised it with consumers .
There is much to work through to get protection perception on a better footing , but it ’ s also essential that we don ’ t let the difference in perception become the key discussion point here and that we focus significantly on education and understanding .
Robert ’ s conclusions are clearly demonstrated by the findings , but is there good news to spur us on ?
Yes . The best news is that protection is firmly on advisers ’ agenda , with 97 % of respondents saying protection is part of the mortgage advice process . However , the message isn ’ t necessarily getting through to consumers , as just 36 % of respondents recall a protection conversation with their mortgage adviser .
Discussing protection
The client ’ s view ...
Thinking back to when you were getting your mortgage , which one if either of the following happened ?
I asked my broker about protection insurances
My broker asked me about protection insurances
Neither
Can ’ t recall
The adviser ’ s view ...
11 % 36 % 24 % 29 %
0 5 10 15 20 25 30 35 40
When you are advising clients on mortgages , at what point do you raise protection with your client ?
During the introduction
During the fact find
When I ’ m making the recommendation
As the final item
Other
NA – I don ’ t raise protection when advising on mortgages
40 % 35 % 12 % 7 % 3 % 3 %
Only 36 % of customers remember protection being mentioned by their adviser .
0 5 10 15 20 25 30 35 40
Understanding what lies behind this communication breakdown will help to make these conversations more valuable for both parties . Consumer perceptions of protection are particularly revealing . Although the majority of respondents see the importance of having cover in place , although general insurance in respect of the home is still seen as more important than personal protection support , the research highlights a lack of understanding .