The protection gap will only close if providers commit at least ten times more turnover to educating consumers about their products according to Lifesearch managing director Tom Baigrie.
Speaking at the Association of British Insurers conference on closing the protection gap today, Baigrie said providers currently spend less than 3 per cent of their turnover on communicating directly with consumers but they should be spending more like 30 per cent.
He said: “Providers need to get consumers to understand their need for protection not life. You can do this by talking about claims. Deploy your capital if you are serious about closing the protection gap and growing the market or it will all be about market share.”
According to Baigrie each provider should concentrate on marketing their products to their particular target markets. He says this method would be more efficient than a single, market-wide campaign.