What we learned about protection in 2017
- To list the ten key drivers of protection needs.
- To understand how to help clients get appropriate cover.
- To ascertain ways to meet clients' protection needs in 2018.
- To list the ten key drivers of protection needs.
- To understand how to help clients get appropriate cover.
- To ascertain ways to meet clients' protection needs in 2018.
Protection needs are still prevalent among Britons but what sort of innovations have the insurance market developed over 2017 to help meet these?
Protection sales have grown for the last three quarters and have now reached their highest level in five years.
At the same time, we’re seeing innovation and vibrancy in the market with the introduction of new products, tools and players.
The feeling at this year’s annual Protection Review conference and awards was one of optimism while, at the same time, a lingering sense that much bigger thing are yet to come.
Protection product sales in Q2 2017 rose by 4.9 per cent on the previous quarter, reaching just over £147m, the highest level in five years, according to analysis from Equifax Touchstone.
This was mostly driven by mortgage term policies, which were up by 20 per cent on quarter one, while critical illness experienced a 15 per cent increase and income protection (IP) 11 per cent.
Since the demise of the mortgage endowment, we have stopped protecting our mortgage debt anywhere near adequately. Peter Le BeauWhether this growth was driven by a strong mortgage market, the emergence of online intermediaries, new technology, raised awareness thanks to initiatives such as Seven Families, or simply a growing understanding that the state won’t provide, we can’t be sure.
But it’s probably safe to say that a combination of all of the above is most likely.
What we do know for sure, as highlighted at the Protection Review conference, is that there are big opportunities for providers and advisers to build on this momentum just as long as all parties truly put customers first.
And by that I don’t mean the seemingly hollow ‘customer service excellence’ statement that appears on just about everyone’s list of USPs (therefore not at all unique by definition).
It is about really and truly getting to know customers, focusing on the whole customer experience, questioning existing products and practices and helping to drive change where needed.
On that note, here’s the 10 key take-aways for advisers, as I see them, from this year’s Protection Review events.
1. Embrace changes in business and society
Change can be concerning. That’s a given. But the combination of changes we’re currently seeing, such the economic backdrop to the UK, are helping to drive income protection awareness and, hence, market growth.
Such changes include:
