LifeSearch has seen 4% growth in income protection (IP) business from Generation Z adults aged 24 and under, the intermediary firm has revealed.
The advice firm is also focusing on vulnerable customers by introducing a specialist risk team for this population.
Chief executive Debbie Kennedy told Health & Protection how the firm was following through on her vision of growing the protection market by bringing in new, younger customers and how the firm is faring in preparing for next year’s Consumer Duty.
Following through on this vision, Kennedy revealed one of the biggest growth areas for the business over this part year has been income protection from younger age groups – specifically Generation Z aged 24-years-old and under.
“We’ve had a real focus on that group of talking to them about the importance of saying the thing you probably need to do is not life cover,” Kennedy explained.
“That could have been the easy sell to be honest, but we’ve really focused on income protection and we’ve seen just over 4% growth in that age demographic which for years has been completely flat. So that focus is starting to work.”
Consumer Duty action plan
Looking ahead to next year’s Consumer Duty, LifeSearch’s action plan has been signed off by its board and the firm is now making progress on its gap analysis plan.
Its focus has been on building resource around vulnerable customers and evidencing delivery of good outcomes.
“So, do we truly have the right processes and support in place to identify vulnerable customers?” Kennedy continued.
“In some way we come across vulnerable customers in every day interactions and then once we’ve done that, can we help them into the right proposition, the right product in the best way for customers?”
This has led to LifeSearch setting up a specialist risk team focused on picking out vulnerable customers and directing them to the right insurer.
“So our advisers can refer them in to this specialist risk team and we’ve invested and built capability and resource into vulnerable customers which is the key thing for us,” Kennedy added
“I think the second thing we need to do, and we know the FCA is looking for, is evidence that you are delivering good customer outcomes. It’s fine for me to say that is what LifeSearch has always done, but can we evidence it?
“So part of this is going to be data and are we collecting the right data? Do we measure the right things that we can show that we are delivering better customer outcomes?
“We’ve invested in a chief data officer and we’re building the team now. Part of it is not just driven by growth and new opportunities, part of it is about how do we evidence what we do for the Consumer Duty better?”
