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What will the protection market be like in 10 years?

Kevin Carr MS blog

Simplicity will drive consumer demand for protection products in the future, ahead of costs and quality of advice, according to research from the Protection Review.

Its Protection 2023 survey asks advisers, life offices and reinsurers what the protection market will be like in 10 years’ time.

When asked what single product feature will most drive consumer demand for protection products in 2023, 43.5 per cent of respondents say simplicity will be the most important feature.

Some 13 per cent say products that come with good quality advice will drive consumer demand, while 4. 4 per cent say products with the lowest cost premium will be key.

Protection Review chief executive Kevin Carr says: “This is quite astounding. What the industry is saying is that what we really need to drive the industry forward is simplicity, not only in terms of the products themselves, but also the buying process for the consumer. The fact that this is ranked so much more highly than cost, advice and other factors goes to show just how complex the industry has made it over the years. Or at least that is the perception.”

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Comments

There are 6 comments at the moment, we would love to hear your opinion too.

  1. AND when the simple solution fails because clients were not fully cognisant of the rules concerning non disclosure and their families are left without protection on death and / or CI, who ends up paying the price of the consumer losses.

    IFAs

  2. @ned I am not sure that insurers making the policies simpler means that the customer wont have a valid policy, or that the rules regarding non-disclosure would change.

    It would just mean that the policies were easier to buy and understand.

  3. Scott Taylor-Barr 9th April 2013 at 5:01 pm

    My personal view of simplicity would not be directly around the complex nature of the policy wording as such, but more the complex nature of the differences between plan wordings.

    The thought of one plan paying out on something that another may not must be a major point of hesitation for many clients – critical illness is a prime example; do you buy a new plan that includes conditions your current plan does not cover, or stick with the old plan that has a wider definition of things like cancer but less conditions?

    You can feel damned if you do and damned if you don’t – even many advisers struggle to highlight every single difference between two plans that aim to cover the same overall area of client need!

  4. Ned – are you seriously saying that IFAs would pay the price? Surely it would be the consumer who wasn’t covered who would lose the most.

  5. Surely the starting point is helping consumers understand their needs in a concise, personalised way. Call it a back to basics approach. Visit http://www.calqlife.com for the simple way of presenting shortfalls to clients.

  6. Wouldn’t it have been better to find out what the customers would want to see in the protection market in the next 10 years instead?

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