Phil Jeynes's Blog
Phil Jeynes, Thursday, 27 January 2011
Phil Jeynes is head of account development at PruProtect
With Barclays now declaring themselves out of the retail market for advice and many other large firms reviewing the practicality of continuing to operate in the advice space post RDR, the protection landscape is changing.
Customers are being encouraged to take personal responsibility for their health and for their dependents, both by government reforms to benefits and the NHS and by increased marketing activity by brokers and providers, not least Aviva who should be applauded for their television campaign raising awareness of the need for life cover.
However, those same customers will need guidance on the right products to match the need they have identified and a lack of advice outlets could lead to clients buying cheap and potentially inadequate solutions.
Therefore it is crucial that IFAs and mortgage brokers become experts in the protection field, so that they can recommend the appropriate product for every client. Too often we see clients with no dependents taking out simple life cover, or those with children buying cover which does not include provision for their family and is solely based on a mortgage debt.
This is not only detrimental to the client, it sells the adviser short too and pitches them into direct competition with the online price traders - a battle no broker can hope to win.
To a degree the insurers are to blame for this predicament, since the protection market has become crowded with "me too" products, which aim to mimic and undercut those of their competitors. This overcrowding is beginning to end and some providers (most notably those of us that are relatively new to the market) are focussing on innovation which allows brokers to make a clear choice on behalf of their client.
Take up the offer of training from insurers wherever you can - far from being cynical product pushes, most are even handed and give you great ideas for fresh ways to stamp your advice on every client transaction. Also, make the most of our online adviser areas which are similarly packed with suggestions and sales aids.
