View more on these topics

Direct salesforces missing out on building loyalty

Life insurance direct salesforces are failing to capitalise on loyal customers by not contacting them regularly enough.

According to research by Limra International, 35 per cent of customers surveyed had not been contacted for at least a year by their life insurance provider.

The survey, which covered over 4,000 people, found that 25 per cent could not remember when they were last contacted.

The research says respondents found that, while initial service from the provider was good, it dropped off radically as time went on. Around 75 per cent of customers said an ongoing relationship with the provider is important but found that performance across the board was low.

A Limra International spokesman says: "In general, the companies surveyed performed well on the service attributes relating to the initial meetings with the financial adviser – his or her knowledge; how approachable customers found them and how well they appeared to listen.

"Customers reported a high level of service at the beginning of the relationship when dealing with the financial adviser but this fell as more remote dealings became the norm.

"It is clear that life insurance companies have large numbers of very loyal customers.

"To capitalise on this is a significant challenge to most life insurers, whose salesforces tend to focus on new contacts rather than nurturing existing customers."

The research found that the most important aspects of service relate to the behaviour of the salesperson.



“Sexy poses in the boardroom? I&#39m game.” – Abbey National&#39s Basil Larkins on playing up to the camera for Money Marketing. “It&#39s something I pinched off the back of a bus.” – Standard Life Fund Management chief executive Alan Burton describing the new slogan for its ethical trust, An ethical trust which doesn&#39t cost the […]

Hard nut to crack for securitisation squirrel

NPI has spent much of the last few years struggling to transform itself into a modern mutual life office capable of sur viving well into the next millennium. But it has been mostly a process of firefighting as industry experts continue to sting NPI with criticism. It remains the centre of speculation that it will […]

ScotEq extends its range

Scottish Equitable is extending its pension range with four new funds. Three funds are aimed at investors seeking an above-average level of risk while the fourth, UK equity income, is aimed at medium-risk investors. The European smaller companies fund is aimed at achieving first-quartile performance over a rolling three-year period. European Tactical invests in all […]

Apcims bids to change &#39stereotype&#39

The Association of Private Client Investment Managers and Stockbrokers is offering two new brochures. The new literature includes a membership directory and a brochure explaining Apcims&#39 role as lobbyist for private-client stockbrokers. It also highlights members&#39 services. Chairman John Cobb says: “Our members are far removed from the stereotyped images often portrayed in the popular […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers. Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and thought leadership.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm