The purchase of a first home is not as much of a life trigger as previously, as more and more people are renting homes for longer – which is impacting protection insurance and creating opportunities for other markets.
This is according to the three panellists at the Health & Protection inaugural Protection Forum that looked at the protection market and mortgage instability.
The panellists (pictured) included” Simon Hendy, chief relationship officer at L&C Mortgages (left); Justin Harper, chief marketing officer at LifeSearch (centre) and Naomi Greatorex, managing director of Heath Protection Solutions (right).
“Renting is increasing all the time,” according to Hendy.
That has meant a shift in the mortgage market and for protection insurance.
“For most people, either it’s a later age or there are millions of people who will never buy their own home.”
For Harper, “mortgages are still important, but we have got to look beyond that.”
Greatorex, agreed, and noting: “People are getting older and older before they buy a property.”
This represents a sea change from recent years, as the decline in the mortgage market has increased the need to look for opportunities in other areas.
Greatorex said: “Back in 2018, 2019 a big percentage of our business was mortgage-based business.
“This has given us more of a push to diversify.”
Life trigger
And Hendy agreed, saying: “Typically, in a busy mortgage market, you’re busy doing your mortgages, you’re doing your protection and you move on – but you should always be looking at other opportunities.
“So that’s where I think its not always about relying on mortgages – there’s so much more you can do.
“I think bringing new customers to the market is too heavily dependent on mortgages.
“The house purchase is not so much of a life trigger anymore for most people.
“Either its at a later age, or there are millions of people who will never buy their own home and never have that conversation with a mortgage adviser – let alone a protection advisor.
“If you look at the stats, renting is increasing al the time – so that’s only creating a bigger problem as more people are renting.”
Greatorex said: “There need to be some other types of conversations going on with protection advisors and other markets.
Hendy agreed, noting: “The rental market is huge, I think its about getting to those customers and explaining to them that regardless of whether they’re renting or if they’ve got a mortgage, there’s things that they need to protect themselves and their family.
“We don’t target certain markets in the right way and advertise in the right way in my view.”
Greatorex noted that estate agents were an important market.
“How do we reach them, and how do we all work together to increase the awareness of the need for protection?”
Is ‘protection’ the best term?
But then the question is about the use of the word protection at all. Is it the best term?
There was general agreement that it was not ideal.
But Hendy said. “I don’t think there’s one word that can replace it – but there’s definitely a need to explain what it is, a lot better.
Greatorex agreed, adding: ” You’re absolutely right. Protection on its own doesn’t resonate with people.”
Harper said: “I think whatever we do, we should avoid using words like income protection, critical illness and even life insurance.
“And when you talk about solutions that help people with everyday problems we focus on the impacts, the problems and we have a solution. – an insurance that can help you with that.”
