When asked more recently about the idea, David Cameron’s official spokeswoman said: “I think the PM shares the work and pensions secretary’s view that we should be doing more to encourage people to take personal responsibility for how they manage their affairs.”
Clearly it could be the most important time and greatest opportunity yet for the protection industry to create a true tie-up between state benefits and private insurance.
Is D2C friend or foe?
One of the age old protection debates is whether growth of a direct to consumer protection market benefits the advised market. Is the direct-to-consumer market the advised market’s friend or foe?
David Buckingham, new product development manager at SunLife, debated that direct distribution would normalise protection in the eyes of consumers, for the benefit of the industry, and compliments what is available through the advised market.
Mr Buckingham stated that there will always be customers that want to do it themselves, while others need a nudge and won’t go looking.
That the answer should not be to replicate an IFA proposition and offer that directly, but to simplify the proposition to eradicate the confusion that comes from too much complexity and choice in a direct market, and couple this with simplified underwriting and instant decisions.
Overall, the consensus seemed to be that the D2C market is a friend, and helps to give the protection industry a much needed boost in terms of consumer awareness and understanding of the need for protection. And while the adverts we see every day might not be perfect for the advised market, it’s not a bad thing to have families hearing about their protection needs on a regular basis.
In truth most D2C players are targeting different types of clients, often with slightly different products. A bit cheaper and a bit less comprehensive, which allows advisers to add value for those who need it and can afford a little more.
Can technology create a better customer journey?
Guy Williams, Liss Systems sales and marketing director, asked during his presentation whether the protection industry is utilising new technologies to deliver a better experience for the customer?
Electronic signatures were cited as one way of making the process of applying for protection much simpler and more convenient for the consumer, whilst being able to shave two weeks and significant costs from the application process. But so far only a handful of UK insurers are using the technology.
More than 70 per cent of insurers in the US market have implemented e-signatures. By using solutions like DocuSign, people can securely sign documents from tablets, smartphones and computers.
Mr Williams said: “Once the early movers prove the benefits of using e-signatures the rest of the market will follow like dominoes. When I first saw them a couple of years ago I thought using them is an absolute no brainer for our industry and they will become a hygiene factor in a few years’ time. The Americans have been doing so for seven or eight years.”
