Insurance monitoring: cover all the bases

According to research by Royal London, one in 10 people with a protection policy are considering reducing or stopping their premiums due to the cost of living crisis.

As prices rise at the fastest rate in 40 years, consumers are looking for ways to cut costs to ease the pressure on their payroll packages. Existing financial commitments such as personal protection can be threatened when households are forced to prioritize urgent energy bills or other immediate living expenses.

Ensure consumers are aware of the risks of dropping insurance protection

Advisors will need to engage in critical conversations with clients to promote insurance products and reinforce the need to protect against potential longer-term financial shocks.

Fail to plan, plan to fail

Although the pandemic has revealed the value of planning for one’s financial future, spiraling inflation has eaten away at savings – without which customers are more vulnerable than before to large-scale financial shocks.

It may be tempting for cash-strapped consumers to cut back on protection products, but insurance policies will be more vital than ever. For example, buildings and contents insurance is a crucial step in future-proofing homes and providing peace of mind in the event of unexpected damage from fire, floods, storms, theft and more. other unexpected eventualities.

Networks will be essential for brokers looking to learn about recognizing and communicating with financially vulnerable clients

Other crucial insurance products that brokers should promote to clients include accidental damage coverage, which will provide additional protection against accidental damage to drains and pipes, windows, bathtubs and toilets. Combined with contents insurance, customers will be covered for accidental damage to expensive items such as carpets, furniture and televisions.

Similarly, adding home emergency cover to customer policies will help repair power or main heating system failures, as well as repairs to the roof, plumbing or drainage systems. .

Crucial time to seek advice

The increased need for protection products presents an excellent opportunity for brokers to renew their focus on customer retention. Advisors should seek to empower consumers with the knowledge to assess their situation holistically to ensure they are aware of the risks of foregoing insurance protection, while finding a product that is right for them.

Brokers now need to be more proactive than ever to get the best results for consumers. Supporting financially vulnerable customers by engaging in constructive conversations will be essential in helping them find the most appropriate and affordable insurance products that best suit their situation.

The cost of living crisis has revealed the need for consumers to be protected against future financial shocks

Likewise, brokers will play an increasingly important role as they are able to tailor advice to a client’s specific circumstances in a way that aggregated sites cannot.

Although people may be lured to aggregated sites by the promise of discounted prices, they may end up without sufficient protection due to mistyped information, unclear add-ons, or undervalued content. On the other hand, advisors have the tools to ensure clients’ needs are met and they receive the correct coverage.

Access a network

Networks will be essential for brokers looking to learn about recognizing and communicating with financially vulnerable clients and ensuring they get the best results.

As rising prices continue to put pressure on budgets, we expect more emphasis to be placed on these types of sessions. Networks can prepare brokers by engaging them with articles, webinars, events, and training sessions, allowing them to provide flexible advice to meet client requirements.

In the current gloomy economic climate, many consumers face financial uncertainty. Those looking for general insurance will need a fast and efficient response on available and affordable products.

Advisors will need to engage in critical conversations with customers to promote insurance products

Ultimately, the cost of living crisis has highlighted the need for consumers to be protected against future financial shocks.

This provides advisors with a great opportunity to engage with people and educate them on the benefits of protection insurance, and ensure they are well protected against economic uncertainty.

Toni Smith is Chief Operating Officer of Primis

This article appeared in the June edition of MS.

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