The price of advice: What do customers think?
Jonathan Cater, Aviva Protection Product Manager, shares his thoughts on how insurers and advisers can work together to inform customers about the price of protection advice.
Helping customers to create financial resilience is a key part of any adviser’s role. But with recent research showing that two thirds of consumers have never had critical illness (CI) cover, there is still work to be done educating customers on the importance of protection. As one of CIExpert's insurer partners we’re delighted to share some of the insights from their Critical Thinking Report 2024*. The report aims to delve below the surface to find out consumers' perceptions of critical illness products and the role of advice.
The biggest challenges
We’ve known for a long time that there are misconceptions creating barriers when it comes to selling protection. Despite insurance being a highly regulated industry, there is still consumer suspicion toward advisers and their perceived charges when it comes to giving advice.
The report shows confusion about whether advisers charge for advice in relation to critical illness. Nearly half (49%) of the consumers didn't know, 32% thought they did charge, and 19% thought they didn't.
The report also highlights that 37% of consumers had not taken advice in relation to critical illness and wouldn't consider it. 27% of the non-considerers feel they can't afford professional and regulated advice. Over a quarter of consumers (28%) are nervous that an adviser would pressure them into taking a policy. Worryingly the report also shows 17% don’t trust advisers at all.
As an industry more customer education is needed on the vital role advisers can play in helping customers create financial resilience. Building customer trust is key. Being clear at the start of the protection conversation about any charges involved for advice can help your customer listen and think about the options you are giving to them without the distraction of worrying if they can afford advice or will be charged.
Jonathan Cater, Aviva Protection Product Manager
The report also looked at how consumers are finding out about critical illness protection cover. It shows that many are opting to go online rather than use advisers. The top three sources for consumers are finding information from price comparison sites, search engines or online consumer groups, free online information sources. But there is hope for future customers! The research shows that of those who were open to considering advice, Gen Z and Millennials made up the biggest numbers, 62% and 57% respectively, compared to 47% for all age ranges combined.
Being proactive to customers' preferred entrance points to protection across the generations will benefit future markets to help ensure more customers are aware of critical illness cover and if it’s suitable for their needs. Whilst searching online will no doubt remain popular, the true value an adviser led critical illness protection conversation can offer a customer cannot be underestimated.
Jonathan Cater, Aviva Protection Product Manager
Breaking down the barriers
To help you feel confident in tackling these customer barriers, we’ve put together some resources to support your protection conversations. These should allow you to proactively address customer concerns, be clear about charges and the processes and reassure your clients that it comes with no pressure.
Find out more
Visit our resources and support materials
* Source
CIExpert Critical Thinking Report 2024 - Research among 5,000 UK consumers. Carried out by Opinium Research. Conducted in November/December 2023.