Any research that you do using expert research systems will be able to support any recommendations you give to clients. Producing comparison pricing from the industry portals will also support this.
Most insurers make rates available via their adviser extranets and provide details of the conditions covered by their critical illness policies, according to John Wilkinson, UK protection director of Aegon.
He says industry Portals exist where advisers can get comparison quotes from a number of insurers and independent product databases (IPDs) are a useful source of comparison data on the cover offered by different insurers.
Mr Wilkinson says: “Insurers can provide reasons why their own policies would be beneficial for certain client circumstances.
“Alternatively comparison reports from IPDs can be used to demonstrate the appropriateness of a particular recommendation.”
Any customer needs highlighted during your factfind exercise will need to be referenced, according to Jennifer Gilchrist, senior product development manager of Bright Grey and Scottish Provident.
She adds that any information to demonstrate you have considered customer needs as part of your recommendation will also need to be evidenced.
“Other information such as options you have investigated, for example indexation of benefits or adding on cover for waiver of premium, will also support your recommendation.”
Kevin Carr, chief executive of Protection Review, says claim statistics are very persuasive when trying to explain to clients why a critical illness policy is suitable for them.
He says: “They demonstrate the need for cover while also proving the majority of claims are paid successfully.”
A number of providers also provide ‘reasons why’ paragraphs to help advisers construct their recommendation letters, adds Peter Hamilton, head of retail propositions for Zurich.
Product literature is a good way of demonstrating why a certain product was recommended to a client, Steve Payne, managing director of protection for Friends Life, says. He explains literature can spell out the features of that product, which can then be cross checked with an individual’s needs.
But Alan Lakey, senior partner at advisory firm Highclere Financial Services, warns not all material offered by providers is useful.
He says guides and surveys that use some tick-box analysis are almost useless in that they fail to differentiate between the claims wordings - and it is these contractual wordings that determine whether a claim will be accepted or declined.