Some intermediaries are worried that higher protection costs will seriously affect their earning opportunities.
With prices on the rise, the concern is that if brokers cannot find the client a cheaper protection deal, they may also find it harder to cross-sell other insurance products.
While consumers are always looking for a great deal, that doesn’t have to mean a cheaper quote.
Offering regular financial reviews to check that customers’ existing products still meet their needs and recommending additional products if necessary are key to establishing long term relationships with clients.
But it could even be possible to save a client money by extending the waiting or qualification period on their existing long term protection policy and taking out an income insurance type product to cover themselves against accident, sickness and unemployment in the short term.
Brokers are best placed to advise on appropriate and adequate protection for their customers as well as educating them on the perils of choosing financial products based on price alone.
I believe they can really stimulate the market and ensure lasting customer relationships by selling on features and benefits of quality cover rather than just price.