Defaqto launches critical illness guide for advisers
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Defaqto has today published a guide for advisers on how to take advantage of opportunities in the critical illness cover sector.
The Critical Illness Guide includes a five-point plan on how to demonstrate the value of critical illness protection to consumers, with advice such as selling critical illness and income protection as a package.
Ben Heffer, insight analyst for life and protection at Defaqto, says: “The challenges facing the critical illness market are those facing the protection market generally, namely low penetration, lack of value for the industry and dented customer confidence.
“The need for protection is as great as ever, but the key issue is how much capacity or appetite advisers have to reach out to people beyond their traditional client base to increase protection sales.”
He adds that advisers should focus on the features and benefits of policies and ensuring they meet clients’ specific needs, rather than prioritising price or finding the option that covers the largest range of illnesses.
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Readers' comments (2)
Tim Bennet | 17 Aug 2011 9:38 am
This is good that there is an awareness, I for one have always sold on product rather than price which is best for me and the clients - companies like Pru Protect for one offer a much better proposition, if you believe in the product you can convert the consumers confidence!
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Terry Young | 8 Sep 2011 1:46 pm
A helpful article. The issues facing protection take up are significant with a £1.3 trillion protection gap. The cost to tax payers is also significant. Whilst advisers certainly have a valuable role to play in helping to address the issue, the solution will require a rather bigger vision which must involve government, industry and consumer groups as stakeholders. There have been numerous reports on this subject (Thorenson report etc) which have failed to achieve any serious response to the challenge. RDR will adversely affect access to quality advice for those of limited means and one has to question the sustainability of businesses who operate in this market. You only have to look at the withdrawal of the larger corporates in this space to be concerned. These issues are likely to become more acute. The old saying that insurance is sold not bought rings true today as it did in the past and people certainly need an incentive to purchase. With cross party support suggesting we could have pension auto enrolment, maybe the time is right to consider doing something bold!
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