The Syndicate: Customers cancelling policies due to perceived 'poor value'

clock
 The Syndicate: Customers cancelling policies due to perceived 'poor value'

A lack of perceived value in protection policies is leading to cover being cancelled, according to a report from The Syndicate, the research arm of Protection Review.

When researching people who had held protection and health insurance products, many had subsequently cancelled their cover because they didn't see the benefit in them.

Others felt they had better things to spend their money on, or had changed their mind during the cooling off period - all pointing towards them not seeing enough value in the cover they had purchased.

Of those who had ended their cover, life insurance to protect people's business had the highest proportion of policies being cancelled due to a lack of perceived value (40%).

This was followed by critical illness cover (38%), income protection (36%), private medical insurance (25%), life insurance to protect the family (24%) and mortgage payment protection insurance (23%).

Another significant reason for people's insurance lapsing was that it ended when they left an employer, which is particularly relevant for private medical insurance (38%)

Almost a quarter (22%) of those cancelling critical illness cover had done so due to affordability, the highest of all products, followed by income protection (19%).

Peter LeBeau, of The Syndicate said: "A recurring theme of this part of our research is that one way or another, the value of insurance is not being conveyed to those that hold it. To those who have protection, the products can feel expensive or benefits were not realised, which is leading to policies being cancelled.

"As long as the benefits and values that insurance can offer are not adequately conveyed at the point of sale, and reinforced throughout the life of the policy, this will continue to be the case."

More on Underwriting

Women In Protection & Health Awards 2022: Full list of nominees revealed

Women In Protection & Health Awards 2022: Full list of nominees revealed

Championing Diversity & Inclusion

COVER
clock 11 January 2022 • 7 min read
Spotlight: Guillain-Barré syndrome

Spotlight: Guillain-Barré syndrome

"The diagnosis of GBS is sometimes difficult given that the symptoms mimic that of many other conditions"

John Downes
clock 05 January 2022 • 5 min read
Spotlight: Alcohol & Liver Disease

Spotlight: Alcohol & Liver Disease

'End stage ARLD has probably developed over a long period, so there may be a GP record of ongoing alcohol misuse'

John Downes
clock 01 December 2021 • 5 min read

Highlights

The Rising Stars of Protection: Lauren Hygate

The Rising Stars of Protection: Lauren Hygate

“It all comes back to those real life stories that get shared”

John Brazier
clock 06 January 2022 • 7 min read
Blue Monday and beyond: The whole wellbeing proposition

Blue Monday and beyond: The whole wellbeing proposition

Latest COVER webinar

COVER
clock 04 January 2022 • 1 min read
The Top 20 Stories on COVER in 2021

The Top 20 Stories on COVER in 2021

The most-read news stories of last year

John Brazier
clock 04 January 2022 • 6 min read