Geoff Hall, Managing Director at Berkeley Alexander
In the current ultra-competitive insurance marketplace where new entrants and big high street players are constantly extending their suite of products and offering low-priced deals, it can be easy for financial advisers to get caught in the trap of believing that they cannot compete against the heavily advertised product comparison websites.
But is this the reality of the situation? We don’t believe it is, so let’s bust some myths.
I can’t compete on price
Use your own adviser comparison system and access insurers, products, and features that may not even be available on consumer sites.
Use service providers who offer a multi-insurer panel approach in order to access a wide range of cover and premium options. Consumer websites often configure products with reduced cover or high excesses in order to cut premiums. If you’re to beat or expose them, you need as many insurers as possible at your fingertips.
It is time consuming
Again, this is where the multi-insurer panel providers can help. One website offering many providers and products will actually speed up the process for you.
Alternatively, consider referring your client to the panel provider’s in-house experts. It takes two minutes to do, ensures a high level of expertise, and absolves you of any administrative or compliance responsibilities whilst still providing a valuable commission.
There’s nothing in it for me
Commissions are meaningful and more importantly if you leave your clients free to use comparison sites you may well be passively introducing them to a competitor.
Behind most of these sites there are either in-house advisers, or lead generation companies and with no “no cross-selling” agreement in place to protect your wider position, and you may end up losing out on your clients next mortgage, life protection policy, or savings plan.
Never forget that your unique selling point is that you are a qualified, trusted, experienced, professional adviser. Comparison sites cannot compete with this and personal service still really matters to clients so take every opportunity to remind them.
If you can find a time-efficient way to meet your customer’s home insurance needs, you really can play the Meerkat and win every time. “Simpuls!”