Hemma Visavadia reflects on her time writing about protection, which highlighted the need for the industry to better engage with young people.
The protection industry reminds me of a river; steady as she goes with the occasional bend in the form of new regulation, product changes or new entrance into the market.
Each bump creates a ripple effect for the consumer; in most cases this is positive, with many insurers trying to find solutions to problems such as access to insurance, the cost of living crisis and further help with health and wellbeing through value added services.
While its common to have quieter and busier periods, from what I've seen protection always seems to maintain level of consistency. For an industry that is comparatively niche within the financial services, in order to instigate real change it needs to be disturbed every now and then, otherwise it will only ever remain the same.
I recently asked protection sector members what they thought the biggest obstacles facing the industry are and what they would like to see change. I was overwhelmed by how many people reached out to share their opinions, which highlights a general desire for improvement and forward development.
Some of the responses said they would like to see a different stance on BMI and quicker turnaround times on GP reports, or not requesting GP reports at all and going directly to the client for more information.
Others said they would like to see more diverse thinkers in the industry and that we still label things "innovative" when actually they're variations on a theme.
Another replied that they want to see more consumers made aware of morbidity and mortality risks and the protection solutions available, whether that be through increased advertising, more adviser conversations, or lenders highlighting the need for protection; all so that more people can claim.
Someone else said they would like to see the sector encourage the building (and rollout) of pricing and underwriting infrastructures that offer every protection enquiry or lead the choice of how they buy protection policies.
Meanwhile, another person said they would like the industry to start thinking more broadly about the needs of corporate customers so that key person cover, succession planning and so forth are considered as a business risk, along with all the general insurance risks, while someone else stated that they would like to see the industry take more action and not just be content with intent.
There were over 30 responses to the question I posed, all of which came from people who can help influence the way protection is viewed by customers, which is really positive to see.
When someone asked my opinion, I said that I would like to change how protection is perceived by consumers.
Lack of awareness
Before entering the industry, I had no idea what it was, let alone the fact that protection is an umbrella term for multiple products. I think that is still a key issue; people, specifically young people, just don't know what it is.
During this year's Income Protection Awareness Week, one of the speakers addressed the importance of protection for renters. For my demographic, who are either in the process of moving out or are already renting while saving to buy, ensuring your income is protected has never been so crucial.
I didn't truly understand this until recently. I was one of those people; I tried to move out, I had secured a place, but due to the cost of living crisis my rent almost doubled before I moved in and it became unrealistic for me to afford it anymore.
This made me realise how quickly things can go wrong and how circumstances are never set in stone. Luckily, I have had no health issues, but imagine how different my situation would be if I also was unable to work. It always fascinated me how the stories I wrote about and heard first hand in case studies affected me. It made me want to take out cover and protect myself should the worst happen.
I don't want to keep banging the same drum, but I truly do believe that in order to push protection forward, the industry must start targeting the younger demographic more successfully, so that every person my age can 1. Know what protection is, 2. Understand its value and 3. Get covered at a much earlier and cheaper time in their lives.
Unfortunately, a lot of people I know still have no idea what income protection is.
My friend, who's the same age as me, recently purchased her first house. My first question to her, something I genuinely never thought I would say, was: "Have you taken out protection?" She had no idea what it was.
Interestingly, her mortgage adviser didn't think to mention protection when she was sorting out her application. After doing my best to explain what the product was, in as simple terms I could think of, she reconsidered and is now reviewing her options for cover.
This is part of the problem. People will only listen to people they know; they will only try and understand something if someone relatable to them can explain it.
There needs to be more young people in the industry who can speak plainly and be more relatable in order to try and help get more people protected.
It's like if your mum told you to take a coat and wrap up warm; you' would be less likely to listen to that then if your friend said put on a jacket you idiot, it's cold outside…well, that would work better for me anyway.
Overall, I have found protection to be a unique sector where the people speak with passion and commitment. They are what makes the industry great, but in order to really move forward, the entire industry needs to find a way to help younger people embrace the importance of protection.
After all, that's what it is all about - helping people.
This article first appeared in the December 2022 episode of The COVER Review.
