Vast swathes of the population still do not think protection cover is for them, this perception persists particularly among the young, renters, mothers and carers and even some areas of the business community.
While more positive storytelling around where cover has made a difference in people’s lives has a vital role to play, so too does jargon-free consumer communications.
And it is also clear this positive storytelling from this industry is more important than ever as it can even save lives.
Reaching Gen Z
“Reaching underrepresented consumer groups with messages about the importance of health and protection insurance remains a challenge for the industry,” Rebecca Hill, senior manager – marketing and communications at Cirencester Friendly, tells Health & Protection.
“Gen Z is particularly hard to engage, often due to a lack of awareness about financial risks and through limited means of communications,” Hill continues.
“However, our recent consumer research reported that 74% of those aged 18-34 are interested in income protection, so the industry needs to do more in getting in front of them.”
Renters, self employed and gig workers
But as Justin Harper, chief marketing officer at LifeSearch, explains, despite growing awareness of the need for cover post-Covid, several groups remain significantly underserved in protection communications and traditional distribution routes.
“Private renters and young families may not typically be reached via mortgage or workplace benefits channels,” Harper maintains.
“The self-employed and gig workers struggle with similar issues, with the added pressure of uncertainty around what cover is relevant or available to them.”
But Harper points to another significant group – women – especially mothers and carers.
“They can oftentimes be overlooked by marketing that targets the traditional but outdated male breadwinners,” Harper continues.
“Meanwhile for ethnic minority communities where cultural and language barriers may persist, trust and engagement can be reduced.
“Finally, people with pre-existing conditions or complex medical histories falsely assume they’ll be declined or priced out.”
Vulnerable consumers
A further issue is where vulnerable consumers are not open about their circumstances as James Shattock, managing director of UK protection at L&G, points out.
“It’s likely that most people will be considered vulnerable at some point in their lives,” Shattock says.
“Whether that’s as a result of changes to their mental or physical health, a life event such as job loss, divorce or bereavement, or their general capability linked to education, financial knowledge, digital literacy, learning difficulties, and other factors beyond their control,” he adds.
“Naturally, many consumers aren’t open about these circumstances, given their personal or upsetting nature, which can make them more difficult to reach.
“In addition, in some of these instances potential customers aren’t even fully aware of their situation themselves, which can mean a lack of understanding of the importance of having cover in place.”
Challenges also intensify where insurers try to group people together, says Peter Hamilton, head of market engagement at Zurich.
“By way of one specific example, some individuals are born deaf, others experience hearing loss later in life due to factors such as illness, injury, or ageing,” Hamilton says.
“Communication barriers often pose challenges for the deaf community, hindering access to services and opportunities.”
Pride in Deaf identity
According to Hamilton, people in the Deaf community describe themselves as ‘Deaf’ with a capital ‘D’ to express their pride in their Deaf identity.
“A lower-case d and ‘those with hearing loss’ is used to describe all other customers who may require additional support due to hearing loss, but who may not think of themselves as part of the Deaf community,” he continues.
Hamilton adds these different communities and cultures reinforce the need for customers to be treated as individuals, rather than as a homogenous group.
“There is often an overreliance on written English to communicate with d/Deaf customers, and firms do not always recognise that this can be inaccessible,” he says.
“Some d/Deaf customers, for example, those who have been d/Deaf since birth, use British Sign Language as their first language. Because of this, English may be less accessible for them.
“Relatively simple steps can help, allowing d/Deaf customers the time and space to communicate in their own way. Sometimes it might just be moderating speech to enable a customer lipread better.”
Lack of awareness
Though Sally Waterfield, chief marketing officer at National Friendly, explains many consumers simply are not aware of what health and protection insurance can do for them.
“There’s also still a very real stigma or assumption that they’ll be rejected if they have a pre-existing condition, or that the process will be full of jargon and endless forms they don’t understand,” Waterfield says.
“Research, like the Iress/IPTF Profile of an IP Customer found that fear of being rejected during the application process is very real and off-putting. Unfortunately, negative stories like claims being denied for mental health or income protection stopping at the wrong time do real damage to trust and perception.”
Waterfield add this is why positive, clear storytelling is so important.
“As an industry, we should be upfront about what cover can and can’t do, so people feel confident they know what they’re buying,” Waterfield continues.
“A focus on education, product design, and clear language in communications helps to remove barriers to entry.”
Limited access for micro-SMEs
But these barriers can apply equally to the world of business, as Vicki Mclean, head of health direct and trading centre at Aviva UK Health, points out.
“Micro-SMEs are often time-poor and cost-conscious, with limited access to tailored advice,” Mclean says.
“By better understanding their priorities, we have a real opportunity to connect with them in more meaningful and relevant ways.”
And according to McLean, this connection can be better achieved through regular training for advisers.
“We have a responsibility to ensure that advisers are supported through regular training and that customers are equipped with the knowledge to build trust, overcome common misconceptions and make informed decisions,” McLean tells Health & Protection.
“Simplicity and clarity in product design are key to building trust,” she continues.
“If we can explain the rationale behind benefit limits and exclusions in a way that feels fair and transparent, we’ll be far better placed to retain the confidence of proactive, health-conscious consumers.”
Cover can be discriminatory
Though even among advisers, there is a perception that protection cover can be discriminatory.
“The elephant in the room is that the protection industry is so discriminatory that many groups of people simply could not get access to the cover because they have a health condition which the insurers ban 100% from being able to get cover in the first place,” Andrew Wilkinson, director at Moneysworth, tells Health & Protection.
“Before communicating the benefits of what the insurance industry has to offer to these people new products need to be developed which do offer these people cover,” he adds.
According to Justin Taurog, CEO at VitalityLife, the way the sector designs products, to ensure they are both relevant and for today’s consumers, has never been more important.
“By combining our data and insight on how our products are engaged with and used, alongside being aware of what is happening in wider society, we can take steps to ensure all our protection products are fit for today and the future,” Taurog tells Health & Protection.
Role of innovation
But innovation also has a key role to play.
Kesh Thukaram, co-founder at Best Insurance, says: “Innovation, too, plays a big role. Why should we have insurers refusing to accept clients on less than a £5 per month premium if underwriting deems them to be at a risk level below £5 per month? Of course, the technology for some insurers doesn’t allow fairer pricing at lower premiums.
“Perhaps we need to address better data and technology too, to enable insurers to give hard-to-reach consumers the 21st-century communications and purchase options they need,” he adds.
Improving patient outcomes
But ultimately any innovation must run hand-in-hand with overcoming the lack of trust in the industry which can even save lives as Mark Stephenson, CEO at Reframe Cancer highlights.
“Early detection through screening can significantly improve patient outcomes and survival rates, however there are many diverse cultural groups across the UK that may not be benefiting from access to this important health service,” Stephenson says.
“Different cultural backgrounds and sensitivities can mean language barriers, fears, concerns and anxieties prevent take up and some services may not be set up in a way that encourages and supports access.
“There may be a lack of trust in the healthcare system and concerns around privacy which can also reduce access.”
Stephenson adds this issue is huge and is important to address, with positive storytelling even having the capacity to save lives.
“As an industry this is a huge issue to tackle but it is an important one,” he continues.
“Screening needs to reach everyone that needs it, and certain demographics will need it much earlier. For example, prostate cancer diagnosis rates in Black men are double the risk of other men – one in four as opposed to one in eight.
“Positive stories across different cultures can help to reinforce the benefits of screening, but as an industry there is still much more to do to break down communication barriers, improve access and provide information and awareness to ensure that health messages are culturally appropriate and engage all communities and help save more lives.”
