Avelo looks at bridging the protection gap

Nia Williams

October 17, 2013

In a spot poll of advisers on the Exchange, 35% thought simpler underwriting could help redress under protection in the market and boost sales.

A further 35% thought that incentives such as linked reimbursed national insurance contributions could help with the issue while 27% believed that effective financial education at all levels could help alleviate the pressure.

Dave Miller, head of portal at Avelo, said: “Falling protection sales are a major issue for the industry and addressing this is important to make sure the market gets back on the right track.”

When looking at demand for protection products 49% of advisers suggested that life insurance was the most popular product this year.

But one in five of the advisers surveyed suggested that mortgage protection products received the strongest demand in 2013 which may be down to the rising mortgage applications and sales so far this year.

Miller said Avelo’s survey showed that product design and financial education have the capability and backing to lead the way and help revitalise the market.

He said: “We have recently seen initiatives such as the Pink Network’s new graduate scheme helping to bring new blood into the industry to engage a younger consumer and narrow the protection gap.

“It is important that advisers explore all clients’ protection needs as the potential loss of earnings for the main breadwinner in a family really needs attention.

“With mortgage sales and applications rising so far this year an adviser must explore the possibility of discussing protection policies to go alongside them.”

Sign up to our daily email