Panel debate: Protection industry should better communicate need for cover
By Johanna Gornitzki
The protection industry needs to advertise itself to make consumers aware of the need for protection, argued experts at this year's panel debate.
Discussing how to raise awareness of the industry, panellists at the COVER Protection Forum said providers and advisers have to join together to promote the importance of having cover in place.
Kevin Carr, head of protection strategy at LifeSearch, said: "We see a lot of advertising about pensions and savings so why shouldn't the protection industry try to do the same."
Agreeing with Carr, Roger Edwards, products director at Bright Grey, said the industry needed to start thinking a bit more long term.
"At the moment, most providers are just focusing on short-term targets like cutting prices, but this is not stimulating demand for protection."
He added: "I think the market is entirely focused on price. It does not matter how much you promote extra-value services, in the end price is so important. It also doesn't help that tools like the portals are all geared towards what is the cheapest in the market. The whole infrastructure is price, price, price. Let's try to move away from that being the only important aspect."
Thinking more long term, Peter Hinchliffe, lead ombudsman for general insurance at the Financial Ombudsman Service, also suggested the industry should invest in communicating with consumers by devising an advertising campaign.
However, he warned: "Until we have a good product tosell I wouldn't waste any money on an advertising campaign."
