Public agnostic over protection cost, says survey
Lucy Quinton
Price is not that important for consumers when buying protection according to one industry expert.
Speaking at a recent roundtable organised by PruProtect, Sammy Rubin, chief executive at the firm, said there should be a new approach to protection as advisers and consumers thought differently when it came to price.
PruProtect surveyed 2,000 consumers and found that while they considered price to be a factor in their protection choice, it was not the most important consideration. In contrast, PruProtect claimed advisers were price driven.
Defending the adviser perspective Richard Verdin, sales and marketing director at Direct Life & Pension Services, said: "If I was a customer buying a television, I would decide which television was best and then figure in the price. Advisers have already moved to this next step of considering price. If all the suitable products are equal then price is the determining factor".
Consumers' perception of protection also needed to change. Nick Kirwan, head of health and protection at the Association of British Insurers, said a 'save and protect' message needed to be portrayed to the consumer.
Kirwan added: "This means saving for the long-term and protecting your home, your things and yourself".
Deepak Jobanputra, actuarial director at PruProtect, said currently there was no consumer engagement and the problem also lay in "getting them to understand what they have actually bought".
Kirwan added: "Customers are never going to remember all the details but will just remember the gist. In truth, they will try and forget about it as they have to psych themselves up for it as they consider it a painful experience."
