View more on these topics

Value is best defence against pricing fears

There are fears that the European Court of Justice ruling against gender inequality reflected in insurance premiums could push up the price of protection products throughout 2012/13.

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.

Recommended

Payday loans used to fill rent and mortgage gaps

Almost one million people have taken out a payday loan to help keep up with their rent or mortgage payments in the last 12 months, according to research by Shelter. A YouGov survey for the housing and homelessness charity also reveals that 15% of respondents – equating to almost seven million people – are relying […]

The investment clock

While Trump blazes blond in the political foreground, it’s easy to overlook the economic background to the new political dimension of 2017. Political risk will be a feature of the year: the unpredictable and untested Trump administration has already created uncertainty, which is unlikely to diminish, especially if protectionist rhetoric starts to outweigh promises of […]

Newsletter

News and expert analysis straight to your inbox

Sign up