Advisers have highlighted five key recommendations to have more effective conversations with customers about protection.
These include ensuring they are frank and honest with customers and telling stories drawing on lived experiences to effectively demonstrate that such cover is an investment in their future.
The tips are included in Legal & General’s The Secrets of Protection Success report which provides intermediaries with a set of practical and actionable insights.
The report, which consulted 16 advisers in the market, found common challenges to having protection conversations included:
- Lack of understanding – where intermediaries focus more on a product than a solution,
- Lack of time or incentive – which can lead to superficial conversations,
- Complexity – the detailed nature of the product can make protection a difficult sale,
- Unexciting – which can make it harder to get people interested compared to other products,
- Sensitive topic – which can make it difficult to raise.
In order to counter these issues, the advisers spoken to for the report suggested five actions to improve protection conversations:
- Passion and stories – draw on the lived experiences of friends, family, and even your own lives to bring the products to life,
- Assertive conversations – proactively bring up the protection topic, even if it can be uncomfortable,
- Cycle of confidence – believe in the value of protection, understand the process, and have detailed knowledge that can be tailored to fit clients’ needs,
- Process – the process involves three key stages: understand the details of the client’s life and financial goals, work through relevant ‘what if’ scenarios, and finally: build a framework focused on solutions rather products, costs and pay-outs,
- Repositioning protection – place protection within the bigger financial picture and help clients see it as an investment in their future.
But advisers also discussed the importance of putting questions in customers’ heads and the importance of the conversation process to conversion rates.
One anonymous adviser said: “I show them what their liabilities are, show them where their shortfall is, and I’ve got questions. I’m putting questions in their head that they probably would never have thought of before.“
Another said: “Last month, I had a 100% conversion rate. I sold to everyone that I saw. I’d say we typically sell to nine out of 10 people in protection. It’s to do with the process and how we bring it up, where we bring it up. And also listening to the client.”
Learning from others
The report marks the start of an educational initiative for intermediaries, delivered by L&G. Throughout next year the insurer will share a range of guides and resources that delve deeper into each key tip to help intermediaries achieve better outcomes.
Jeff Woods, head of intermediary development at Legal & General, (pictured) said: “When we began this research, our goal was to give advisers a set of best practice hints, tips and actionable insights to support client conversations.
“We know that having conversations around protection can be tricky due to the current financial challenges but learning from others and sharing best practice can really turn the dial and change customer perspectives.
“This report shares the tools and resources advisers need to have to facilitate great conversations that lead to better customer outcomes. Developed from the insights shared it compiles key techniques that intermediaries can start using today.“
