The idea that all broker firms not conducting advised sales are bad is a myth and there should always be a place for them in the protection sector, according to Phil Jeynes, director of corporate sales at Reassured which provides an unadvised sales process.
Jeynes (pictured) was speaking during a head-to-head debate at the Protection Review conference with Tom Baigrie, founder and chairman of full advice firm LifeSearch.
Jeynes outlined and sought to debunk five myths which he believed were held against broker firms not regulated to give advice by the Financial Conduct Authority (FCA) who were operating in the protection market.
He said the first myth related to the idea that all such firms were bad, but he countered that some of the ills associated with unadvised brokers could also occur with advice firms.
Related to this point, Jeynes said the second myth was that so-called dodgy adverts only directed consumers to these firms, but he argued such adverts can also be directed to firms giving a fully advised sale.
Myth three related to the idea that the market could provide greater access to insurance while cutting off access to non-advised sales.
And myth four was that the sector only gets one chance with customers; but Jeynes called on delegates to do more to re-engage with their clients rather than dealing with them in just one-off transactions.
Biggest myth
But Jeynes argued that the biggest myth was that the market would be better off without firms who do not offer advice and their sales.
“Outsiders to this industry would be baffled as to why we’re having this debate in 2021,” Jeynes said.
“Imagine a restaurant that’s capable of seating three times as many customers yet turns away people at the door because they don’t like the way they want their steak cooked. It makes no sense.
“It’s high time we accept that people want to buy in myriad different ways, digital, face-to-face, over the phone, advised, non-advised and unite in serving them with quality outcomes rather than infighting.”