The insurance sector has been talking about ensuring more customers take out critical illness cover for the past 30 years, but all that has happened in that time is that the protection gap has grown ever wider.
This is according to CIExpert director Alan Lakey (pictured), who was asked about why the firm launched its Critical Thinking research two years ago at an event marking the release of the latest report last week.
Something’s wrong
“I’ve been going to events for the last 29 years,” Lakey told delegates. “And each year we talk about the same things.
“We talk about the protection gap which doesn’t close, how our products are getting better and people still aren’t buying them,” he continued.
“In fact, sales of critical illness plans in 2023 were at 50% of the figure from 20 years earlier. They were far better. So clearly something’s wrong.”
Creating the sale
Lakey revealed the idea behind the research was to try to discover the rationale behind the public not buying and advisers not buying and selling the cover.
“That became the rationale behind that,” he continued. “To unearth information that enables us to market essentially and have conversations that make sense.
“I think any adviser who understands what they are doing will tell you that it’s having the conversation [with customers] that creates the sale.”
“Just sending out a letter won’t necessarily work. But talking to somebody and explaining it in a sensible and viable manner, explaining the ins and outs, without being boring because you can drone on about it, I accept that, the secret is to get the balance and people will listen and take out the plans that they need.”
