Business protection sales remain a tiny part of the overall protection market, because people simply do not know about it – but that means great opportunity.
“We don’t talk about it,” said Naomi Greatorex, managing director of Heath Protection Solutions during a panel discussion at the Health & Protection inaugural Protection Forum that looked at the protection market and mortgage instability.
The three panellists (pictured) included Simon Hendy, chief relationship officer at L&C Mortgages (left); Justin Harper, chief marketing officer at LifeSearch (centre) and Greatorex (right).
Greatorex said: “People don’t know it exists.
“So, when you talk to business owners, it’s very likely that they have no idea about the type of products, we’re talking about.”
“So key person insurance, shareholder protection, executive income protection – once you explain to people that own their own business what these products do, they can understand exactly why they need them. “
Handy agreed and said: “There’s a massive gap.
“There’s, such a massive opportunity. The mortgage industry businesses is working on it. We’re nowhere near there yet, but if you get that right is it’s absolutely massive.”
Greatorex added: “I think it’s an educational piece and it’s being willing to have those types of conversations.”
On the issue of value-added services and whether they actually add value, Harper said: “Yes, they are helpful, but they need to be explained.
“The challenge we have in many instances is that they are non-contractual benefits.
“There’s a role of duty for both the insurers and for the adviser to make clear that these things exist and how they can help that every day protection – not just a claim but how from day one, you can get help and support in a whole range of different issues.
“They are hugely valuable and you won’t be able to get them for nothing. And elsewhere, you have to pay through the nose to get those sorts of services,” he said.