Written by Mike Pritchard, Programme Manager (Distribution Quality Management), Retail Protection, L&G
As many people face up to high living costs, balancing short-term financial pressures alongside long-term planning, the backdrop for the protection industry remains challenging. Consumers may also be concerned about the potential inflationary impact of US economic measures.
However, the current state of play highlights the immense value of advice and how protection can be a financial lifeline for families impacted by a life-changing diagnosis, long-term illness or loss.
Many intermediary firms are working hard to respond to wider regulatory changes, particularly in light of the FCA’s pure protection market study, with a focus on distribution arrangements, commission structures and fair value.
During such periods of transition, it is essential for providers to offer guidance to their intermediary partners to navigate the regulatory environment, while delivering the best customer outcomes.
The integral role of data and insights
To ensure customers remain covered, both intermediaries and providers need to work smarter and harder to maintain communications and strong relationships with policyholders.
Underwriters can provide the data and education to facilitate this, and there are a range of new processes and technologies in the underwriting space which help to facilitate better adviser communication and secure good customer outcomes.
Clients’ needs are best served when you have the perfect marriage of advice, products and solutions. Advisers can add a huge amount of value by managing customer journeys, anticipating challenges and offering solutions before the customer is forced to react to their changing circumstances.
Many providers are prioritising the data and insights they share with advisers. When done well, having access to these insights can support advisers in making sure more claims are paid, and fewer are declined.
For example, L&G’s Distribution Quality Management (DQM) programme aims to keep “good business in business” by helping intermediaries who need advice, assistance and access to its knowledge base. With access to high levels of data and support, advisers can have better-informed conversations with their clients, which ultimately results in better client outcomes.
Advisers: ‘The Hero in the Middle’
Enhanced tools and data access are one thing, but it’s the advisers and their strong customer connections which are essential in securing better outcomes and helping to grow the protection market.
There are countless stories of the incredible value advisers bring, including those who have gone above and beyond to support clients in their darkest hours – stepping in to help them navigate the claims process to secure their family’s financial future.
Advisers have also worked to help hard to reach customer segments, which had a general mistrust of insurance, to understand the value of cover in protecting their families should their circumstances suddenly change.
Championing advisers like these helps to bring claims stories and customer experiences to life, which can demonstrate the value of professional advice to existing and potential customers. That’s why we are recognising exceptional advisers – our heroes in the middle – at L&G’s upcoming Business Quality Awards next month.
Providers supporting advisers
Protection providers have a unique role to play, both in helping guide their intermediary partners through a challenging market environment, and in celebrating them as advocates for better customer outcomes. For providers, improving access to data and services to their intermediary partners, helping them stay close to clients and keep them protected, must be a priority.
While new technology is helping improve retention rates and reduce misrepresentation, strong communication remains key, both between intermediaries and providers and with the end customer at crucial touchpoints throughout their journeys. It is here that the adviser makes the real difference, ensuring fewer people go unprotected and helping to change perceptions of the value of protection across society.
