Research: Competitive premiums ranked top with IFAs
By Johanna Gornitzki
Price is still the deciding factor when recommending protection products, according to a recent study.
Research conducted among 192 IFAs on behalf of Lincoln Financial Group revealed that 82% of respondents considered 'competitive premiums' to be the biggest driver when recommending a protection provider, ahead of service levels, flexibility of underwriting and payout levels. Some 78% also predicted that price will remain the deciding factor in the future.
In second place came 'presence on portals' with 36% of IFAs citing it as an important factor when recommending a provider.
Ian Noble, head of life sales and marketing at Lincoln Financial Group, said: "Competition in the market has meant providers have been vying for business by lowering prices. This is good news for the consumer, providing the lower prices do not translate into tighter claims standards and more declined claims. But, as always, price should not be the only concern for policyholders; it should be considered on balance with payout rates and levels of service."
Another study, published by the British Insurance Brokers' Association, showed that young consumers are also seeing price as the most important factor when buying protection, with 46% continuing to make their insurance purchasing decisions based solely on price.
The survey revealed, however, that those aged 25 and over take a slightly different view, with more than 70% believing that price is only one of a number of aspects that should be considered when buying insurance.
