The AMI research reveals a worrying scepticism among consumers about information released by insurance providers. More than half of consumers (57 per cent) say they do not trust claims statistics ‘very much’ (43 per cent) or at all (14 per cent). Consumers’ estimations of the proportions of protection insurance claims that are paid out also fall well short of the real figure, more than 98 per cent.
Advisers should be able to put the facts about cover and claims in front of consumers when discussing protection products, with clear information backed up by real life case studies and referenced sources. Advisers should also ensure that any additional information the customer might need is easily accessible, online, or in printed formats, and written in clear language. Infographics can be helpful, particularly as a tool to inform customers clients about the features and benefits of different products.
5. Don’t forget existing customers
Current customers may also benefit from a review of their requirements and current circumstances, which may reveal gaps in their existing cover. For example, those who have needed to take out mortgage payment holidays and other financial arrangements, including protection plans, during the pandemic may welcome an opportunity to make changes that could ease financial problems and bring some peace of mind during what may be a difficult period.
6. Provide additional support when serving vulnerable customers
Some existing customers who are enduring a particularly difficult period as a result of the pandemic may now meet the Financial Conduct Authority (FCA) definition of a vulnerable consumer.
Advisers must take particular care when working with any vulnerable people, possibly including some elderly people, people with serious physical and mental health problems, or those with a limited understanding of, or confidence with, finance, numeracy or literacy.
You must make sure that the customer understands the products they are being sold and why those products meet their requirements.
It may not always be easy to identify vulnerable customers, particularly as every interaction currently has to be conducted via digital or telephone channels, but using a structured list of questions at the outset should help advisers to do this.
Advisers must also take extra care to make and keep recordings of interactions with these customers, or with their relatives, carers or other representatives to whom the adviser may need to speak during the process of arranging or upgrading cover.
It is a good idea to discuss with colleagues the best approaches for working with these customers and to draft formal policies for doing so.
