Communication is king and no more so than when it comes to protection insurance.
Given its nature, it’s likely that an individual will first be introduced to protection around the time of a major life event – getting married, buying a house, having a family or changing jobs are prime examples.
It’s likely that protection will be one on a very long list of things that they need to consider at the time.
It’s therefore not surprising that once the proverbial dust has settled, it often ends up with the insurance policy documents being carefully filed at the back of a drawer.
Overlay the fact that protection is a long-term product and the risk of a client forgetting that they have protection cover in place increases further.
Having worked in the industry for many years, I remember when, outside of a claim, customer engagement was largely transactional in nature and tended to be related solely to policy changes and general cover enquiries.
While this prompted customers to remember that they had cover, this limited interaction carried the risk of them forgetting the full range of benefits that their policy offered and not recognising the need to contact their adviser to review their cover when their circumstances changed.
Positive change
Reassuringly, I’ve seen a positive step change in relation to customer engagement.
This improved customer engagement has in part been driven by the trend to complement protection insurance with added-value benefits that policyholders can use every day.
Virtual GP services and wellbeing benefits are prime examples – and benefits
have seen a surge in usage over the past few years.
The FCA’s consumer duty principles have provided a renewed focus on the frequency and quality of customer contact, offering additional opportunities for insurers to explore customers’ understanding of their products and how communications can help clarify, simplify, and maintain long-term engagement.
Initiatives such as Aviva’s protection tracking service are enabling regular communication by signposting advisers to a downloadable ‘client report’ containing all the information required for them to update clients on their protection holding and policy benefits.
Although prompted towards a policy anniversary, the client report is available with the latest information at any time.
Using data
The presence and active use of annual statements represent a foundational move towards improved engagement and understanding of protection cover, which insurers and advisers can continue to build on.
This in turn will help raise awareness and understanding of protection benefits and drive increased value for customers.
Digital technology offers a real opportunity for advisers to proactively communicate with their clients when a need is identified, or a change required.
From getting married, starting a family, moving house, to making a claim, individuals will likely move through several significant events during the lifespan of a protection policy.
