Growing an advice business is rarely a simple task and while lead generation can play an important role when an intermediary is starting out, it appears advisers have had limited success when employing it in driving new business.
Some advisers resist using lead generation firms entirely, while others report “jarring” experiences where carrying out due diligence primarily rests on their shoulders.
Consequently, while lead generation providers are keen to be proactive, it is often up to advisers to put in time and effort to ensure this route to market is as effective as it possibly can be.
And with both the British Insurance Brokers Association (BIBA) and the Association of British Insurers (ABI) restating the importance of signposting this month, it is clear this strategy must sit alongside referrals and word of mouth in any successful marketing mix.
Jarring experience
Joanna Streames, owner of Velvet Mortgage and Insure Services, is one advice firm leader who has experimented with lead generation firms but was left underwhelmed.
“I’ve used lead generators in the past, just the once for my own business, and found the experience jarring,” Streames tells Health & Protection.
“When you’re used to clients being introduced through referrals or professional relationships, moving to paid leads feels less like advice and more like ringing the Yellow Pages.
“You’re starting every conversation from zero, often competing on speed rather than suitability. I was growing quickly and thought this would be a good way to get business in volume for my new advisers.”
While Streames concedes lead generation can create volume, this does not always translate into growth.
“It didn’t work at all and was a complete waste of money and effort,” Streames continues.
“That experience isn’t unique. I hear the same story repeatedly from advisers: high spend, low intent, and conversations that feel transactional before they even begin.”
Intent to purchase is high
However, Unbiased founder and chief executive Karen Barrett is keen to emphasise there can be upsides to using lead generators for sourcing new clients.
“Intent and control are two major factors that set lead generators apart when it comes to growth,” she tells Health & Protection.
“For life insurance advisers, lead generators allow them to access enquiries from people who are actively seeking advice, often prompted by a recent or upcoming life event. This typically means intent is high.”
Barrett argues this sets lead generation apart from digital channels such as social media, where the primary focus is more on building awareness over time rather than engaging people who are ready to act.
“Lead generators also operate with deep expertise in a broad range of digital channels, allowing advisers to benefit from that capability without having to compete directly or build it themselves,” she continues.
Barrett adds that most lead generation models will give advisers a degree of control, enabling them to filter the types of enquiries they receive and, in the case of Unbiased, decide whether to accept or reject leads based on fit and capacity.
“While word-of-mouth referrals remain valuable, they are often inconsistent and difficult to scale,” she says.
“Lead generators, on the other hand, help provide a more predictable, scalable flow of opportunities to support growth.”
Signposting
Of course in a post-Consumer Duty world, advisers are not reliant on lead generation companies, with advisers under increased scrutiny from the regulator to ensure they write or refer.
Indeed only this month, the British Insurance Brokers’ Association (BIBA) and the Association of British Insurers (ABI) launched a voluntary industry-wide Total Signposting Commitment.
The commitment is largely-based on the signposting arrangements in place for protection insurance and several other types of cover.
And the adjacent sector of mortgages is providing a rich supply of leads to the protection sector and vice versa.
Chloe Davies, head of protection distribution at L&C Mortgages, tells Health & Protection: “Our protection enquiries are very much coming from our own customers that will typically have approached us for a new mortgage.
“That conversation will naturally include the benefits of and the need for protection. A new mortgage will often be a trigger point for customers to consider their wider financial position.
“As a result of that organic source of enquiries we don’t need to look to lead generators to provide further opportunities.”
Alternative source of enquiries
Though Davies maintains lead generators may offer an alternative source of enquiries for advisers, either as a way to grow the number of enquiries or as a tool that can be used where there are fluctuating volumes of enquiries.
“If enquiries drop off then being able to use a lead generator to fill any gap could be a more flexible solution,” she continues, adding two key factors will be at play in how successful a solution it may be.
“The cost and quality of the enquiries will be crucial in determining how successful they may be as part of the mix of enquiries,” Davies continues.
“It makes sense to drill down carefully to how the lead has been generated and what the customer expectation is.
“The better the quality of the enquiry then of course the price is only likely to rise so advisers will need to have a good gauge on just how engaged customers are.”
Resisting lead generation companies
Although some established players continue to avoid lead generation companies entirely.
This includes Alan Lakey, director at CIExpert and Highclere Financial Services.
“We don’t use lead generators,” Lakey says,
“I don’t trust them to forward real interested clients and I am not prepared to gamble money on them doing so.
“I am aware that many of them resell on the leads which means consumers will receive more than one phone call which tends to antagonise and creates a bad view of the industry.”
Daniel Lloyd-John, CEO of Broadway, an advice firm which launched a protection division just last year does not use external lead generators for new health or protection business either.
“Group health and protection insurances are not typically procured through aggregator sites or lead generation platforms, which is where much of our business sits,” Lloyd-John says.
“This isn’t to rule out using this type of lead generation in future, but they aren’t the best fit for us right now.
“Most of our new business comes via corporate or personal insurance cross-selling as part of our holistic solutions to protect our clients’ interests, alongside referrals from satisfied existing clients and ambassadors of our business.”
Consequently, Lloyd-John favours a different approach.
“With the largest lead generators – price comparison sites – individuals typically focus on the price and term of insurance cover; we focus on the quality of cover and its suitability for each individual client, which is a much more in-depth, personalised conversation,” Lloyd-John explains.
“For this reason, we’re investing in our website and content marketing this year to bolster lead generation where required.”
Due diligence falls on advisers
Ascend Broking Group is another advice firm to have entered the protection sector in the past year.
Kristian Breeze, director of healthcare at Ascend Health, maintains lead generation will continue to influence the market because there will always be firms that prefer outsourced prospecting and always consumers who respond to comparison sites, online ads or data‑led marketing.
“Insurers themselves typically keep these relationships at arm’s length, focusing instead on oversight and compliance rather than active partnership,” Breeze continues.
“The responsibility for due diligence usually falls on advisers, which is another reason stronger industry‑level standards are needed.“
Quality lead gen still has a role
Even in a climate where word of mouth, digital presence and direct outreach can drive substantial growth, quality lead‑gen still has a role to play, Breeze adds.
“But it must be rooted in honesty, clear consent and proper governance,” he continues.
“When that is the case, it can support advisers and ultimately help more people access appropriate health cover.
“When it is not, it undermines trust across the entire sector.
“The challenge for the industry now is not whether lead‑gen has a place, but how we ensure the only lead‑gen that survives is the kind that puts consumers first.”
