As part of Health & Protection’s Guide to PMI for new entrants, Marcia Reid, non-executive director, Sherwood Healthcare, explores some of the main issues to avoid for firms and advisers new to the health insurance advice market.
Much of the advice below is applicable to general insurance advisers and brokers in general, but there are some nuanced, yet significant differences with health insurance that are worth noting.
Don’t treat health like a simple add-on
PMI advice is not necessarily more complex or challenging than other financial services – but it is different.
Consulting is key here – the client adviser relationship cannot be simply transactional and a client’s reason for purchasing healthcare benefits will be very different from their general insurance or other operational needs.
There is a tendency among adviser firms who have a large general insurance presence to underestimate the value of the healthcare adviser client relationship and the significant impact it can have on client loyalty overall.
Treating PMI advisers like poor relations within any broking organisation is unhelpful and shortsighted.
Download the Guide to PMI for new entrants here
Don’t assume that health insurance advice is just for renewal
Do not ignore the importance of ongoing dialogue with your customers throughout the policy year and do not neglect the impact of claims advocacy.
Remember that you are not just supporting the client – they have members who may need some claims trouble-shooting at a time when they are at their most vulnerable.
The member experience is crucial and poor onboarding or low utilisation of benefits puts the scheme and the adviser at risk. And of course – it’s not just about price.
Churn is not always possible, or desirable, and sustainable pricing in the face of potential ongoing claims should be the goal.
Don’t just play lip service to compliance
If you follow treating the customer fairly and make sure this is accurately documented, you cannot go wrong.
Member confidentiality is absolutely crucial with medical matters, of course.
Don’t underestimate the complexity of providers and products
Skills are transferrable – knowledge is not. If you are new to the adviser market, you cannot just wing it and you need to appoint heavy-hitters who really know their stuff.
But as you build your team, take care that knowledge is not assumed.
Successful hires can be individuals with incredible customer service skills but new to healthcare. This can be learned and as long as there is a genuine interest in risk management and health and wellbeing, the right employees can flourish in the PMI advice environment.
Furthermore, don’t underestimate the value of continuing professional development (CPD). Insurers are always keen to share product developments with advisers and with the pace of innovation, this is a vital part of an adviser’s role.
Insurer meetings and events are a useful way to continue to build positive insurer relationships.
Don’t overlook SMEs or private clients
Small premiums may mean low commission but there are more than five million small-to-medium-sized businesses in the UK and they are the bread and butter for advisers.
However, avoid the assumption that broking a 2,000-member scheme is the same as a three-person band – it is not. You will need to appoint an experienced private client adviser and this will enhance your proposition.
Don’t overpromise on the wellbeing advice space
If you don’t have the relevant expertise or capacity, you are better to build relationships with third-party providers and actively signpost these to your clients.
Don’t criticise the NHS
But do make an effort to understand how it works and how PMI complements the NHS. There are plenty of good reasons to promote PMI without doom-mongering about a cherished, national institution. Do make an effort to understand the UK healthcare landscape.
Do focus on helping people
For all the challenges, this is one of the most rewarding advisory areas to join.
Health insurance advice is not just about financial services; it is about people.
Helping individuals access timely care and the means to stay healthy is a worthy endeavour, and this is a market where commercial success and personal care go hand in hand.