Protection Review Summit encourages debate on key industry issues and focusses on the 'perils, process, product and price' of protection
Protection Review held their first summit back in May of this year, in association with iPipeline, as part of a new series of interactive events encouraging debate on key industry issues.
The events are designed to tackle the ‘4 Ps of protection: Perils, process, product and price', and the first event covered the ‘perils' of protection, talking about the perils of not being protected, the risks people are taking with their finances and what the industry can do to encourage more people to take out life cover, critical illness cover and income protection.
During the summit, speakers were asked to provide one action for the industry to take and the responses were as follows:
1. Increase adviser confidence
'Give advisers more confidence in both protection products and the process, particularly speed of processing. Keep everything simple and find engaging ways to promote the consequences of ignoring the perils.'
Simon Davis, who recently stepped down temporarily as CEO of Guardian, spoke of the importance of advice in growing the protection market. ‘Advisers are reluctant to introduce a bad news story, in this case protection, into the mortgage conversation. How can we encourage more advisers to have the protection conversation?'
Simon also asked whether we, as an industry, have been complacent and not kept pace with changing customer needs, beliefs and how they communicate. He believes that advice is still the key to growing the protection market.
2. Engage using technology
'Acknowledge our next generation of customers do everything on their mobile phones and we should develop ways to engage them more on those devices. How can we be there when they do that Google search?'
3. Protect generation rent
'Realise that increasing numbers of people are renting houses rather than buying, and that the traditional mortgage protection sale is no longer the main reason people might buy protection.'
4. Understand behavioural biases
'When communicating with customers, don't focus only on rational factors but be aware of the irrational drivers of human behaviour and the impact these can have on customer decision making. Always take a test and learn approach.'
Isobel Thomson-Cook, behavioural research consultant at Swiss Re, discussed behavioural economics and suggests that ‘people aren't always rational and are heavily affected by contextual factors and often use heuristics (mental shortcuts), when they make decisions. For example, if people can't easily draw to mind an example of insurance claims being paid this may impact their thinking as to how likely this is to happen.'
5. Engage throughout
'We should use data to create relevant and timely engagement throughout the lifetime of a protection policy, not just at the start.'
Chris Samuel, account manager at iPipeline, spoke of the past and present for protection. ‘In the past, protection was a one and done transaction with little or no follow up. Now digital technology means we can create lifetime customer engagement. We can be proactive and prompt customer action many times and digitisation means that everything no longer needs to go through the insurer. Now we can design products that trigger many customer engagements over the life of a policy.'
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