View more on these topics

Six questions for providers

The protection gap will only close if product providers commit at least 10 times more cash to educating consumers, says Lifesearch managing director Tom Baigrie.

Baigrie also challenged providers to answer six questions on the marketplace.

He said providers 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 und-erstand their need for protection not life. Deploy your capital if you are serious about closing the protection gap and growing the market or it will all be about market share.”

Baigrie said each provider should concentrate on marketing products to their particular target sectors as this method would be more efficient than a single, market-wide campaign.

He said that most distribution is aimed at selling the least amount of protection, for example, the cheapest life insurance products, but product providers should be trying to sell as much protection as possible to every customer.

TOM BAIGRIE’S SIX QUESTIONS FOR PROVIDERS


  • How do you sell something that people do not know exists?
  • How do you sell insurance no one claims on?
  • How do you establish, bravely and ethically, fear that will drive people to purchase?
  • How do you say it is good stuff but you need to buy it carefully?
  • How do you say, do not lie or we will not pay?
  • And how do you make it profitable?

Recommended

Ditch Shoreditch, Lansons

Non-metrosexuals, please forgive us but we hear tell that the Lansons Party is moving from what is these days the well-heeled borough of Clerkenwell to London’s silliest locale, Shoreditch.For those readers outside the Smoke, this may not mean much but it is a place where the youth and not so youth of London, generally living […]

‘We can beat the banks’

Positive Solutions chief executive Jim Reeve says the firm is better equipped to serve the mass market than either bancassurers or insurance companies.He told over 1,000 IFAs at the company’s annual partner forum in Birmingham last week that the firm’s next phase would be even more successful, with product providers clamouring for distribution through PosSol.Reeve […]

Broker talkback

Is Aifa doing a good job campaigning for advisers on the retail distribution review?Yes 82% No 18% Yes “I think there should be a whole range of advisers so generally speaking I think they are doing a good job.”James Brooke, Anand Associates Yes “I think Aifa is doing a good job in what is very […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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 advice.

    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

    Email: customerservices@moneymarketing.com