Tag Archives: association of british insurers

What use are great protection claims statistics if no one knows about them?

There have been some great headlines recently shouting about how many protection claims we paid last year.

Here’s one from Money Marketing Magazine.

“Protection industry paid out £3.1bn in 2013”

And another from Financial Adviser magazine.

“ABI: Insurers paid out 97% of protection claims”

Undoubtedly these are great protection claims statistics. As Dougie Grant from Aegon says in the Financial Adviser piece, “The figures released by the ABI today shatter the illusion that insurance companies don’t pay claims and demonstrate how important it is to have cover in place.”

You can’t argue with that.

Protection Claims Statistics

But as great as these figures are it’s like hundreds of trees falling in the forest. You won’t hear them fall unless you are there to see them. The public still think that protection providers actively try to avoid paying claims. In fact they think that we pay out less than 40%. And articles in the Daily Mail and features on BBC Watchdog fuel that perception.

Only a very few people will go looking for great claims statistics like this. Confirmation bias means that they’ll seek out the negative articles that confirm their belief that we don’t pay.

Articles like this are great for an adviser to whip out when a client  raises the question about a companies willingness to pay. But main stream audiences aren’t seeing them.

So what are we doing to promote these amazing claims statistics? Where are the case studies with claimants? Where are the video testimonials from clients? Where are the interviews with people holding their cheques?

Statistics alone will not change deeply rooted perceptions. We need to tell the stories of the people whose lives have been affected.

Or better still let them tell their stories themselves.

Do you agree? Leave a comment below and share your thoughts.

Are Scary Headlines really needed to guarantee more Eyeballs on Screens?

Do you want someone to read your email, blog, article, or newsletter?

Of course. We all do.

Marketers like me will tell you the key to success is to craft a irresistible headline. Pick up any newspaper or magazine from a newsagent’s shelf and scan the headlines and you’ll see that the media have this down to a fine art.

Scary Headlines

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The glossies are the masters of this science. In fact writing tutors encourage students to study titles like Cosmopolitan and Men’s Health to learn how to do it.

Here’s a Cosmopolitan article title:

20 Ways to Make Him Scream. In a good way

Here’s one from Men’s Health:

15 Powerfoods that Fight Fat

Headlines with statistics seem more effective. And if the statistics are scary – all the better.

But what about manipulating statistics to increase clicks? What about subtle interpretation of statistics to embellish a story to guarantee more eyeballs on screens? I ask this because Regulators have lambasted the Protection Industry for using scary statistics in the past. How far is it acceptable to go?

Let me give you an example.

Being partial to a nice bottle of red wine, especially if the grape is Zinfandel and it comes from California, a headline in a newspaper alarmed me recently claiming that a new study says that just one glass of red wine per day could increase your chance of getting throat cancer by 168%.

168%!

Wow that’s a huge increase isn’t it? I bet a lot of people who read that would be worried enough to read the article. I was (proving of course that the scary headline technique works).

But what is annoying, when you look into the detail of the article, is that they never tell you what the baseline is. What is the 168% increase on top of?

If the real chance of getting throat cancer is 1 in 1 million then a 168% increase on that turns a miniscule chance into a slightly more than miniscule but still miniscule chance. So it’s a non-story. Red wine drinkers however couldn’t resist clicking through and reading the copy.

And here’s an example from the Protection Industry. I recently came across an article with the following scary headline:

40 to 60 is the most dangerous time of life

They’d written the article about some figures Reinsurer RGA released stating that, “The majority of life insurance and critical illness claims are for people between the age 40 and 60.”

Whilst RGA’s claims figures are correct the headline’s interpretation of the statistics was completely wrong.

Scary Headlines

It is certainly true that age 40 to 60 is when most illnesses and deaths happen (and therefore claims) among the INSURED population. But given the average policy is taken out by someone in their 30s for about 25 years that’s absolutely expected.

If you looked at the wider population as a whole – most illnesses and deaths would not take place during that window. At a much older age in fact. The headline is more of a “interpretation of the stats” and not reality.

Does it matter if a headline is technically wrong as long as it compels someone to read it? In this example the more people reading might prompt more of them to go and seek advice about protecting their finances. That’s not a bad outcome is it?

If a life insurance company used that headline in a brochure there’s no way it would be compliant. They wouldn’t be able to use it.

But the media are not subject to those same compliance concerns. So are scary headlines, even wrong scary headlines, justifiable as long as they guarantee more click-throughs?

Now it’s your turn: What do you think about scary headlines and the interpretation of statistics? If it makes more people read articles that might ultimately benefit them is it acceptable? Please leave a comment below and let me know your views.

Pop Quiz! A Heart Attack. Can you describe EXACTLY what it is?

On my recent First Aid refresher course, the tutor asked our group to describe what a heart attack is. Having been in the protection industry for many years I was ready to trot out a paraphrased version of the ABI heart attack critical illness definition.

If she’d asked me.

She didn’t.

But only 1 out of the 8 the tutor did ask got it right.

My latest article for Financial Reporter asks what this means for customers and how they see critical illness products. Please click on the picture to read!

Heart Attack

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And when I say we need simplification, I don’t necessarily mean fewer conditions covered. But what about simpler definitions?

“Diagnosis of a heart attack by a consultant cardiologist.” Full stop.

From a pricing point of view that might not be possible but it would certainly be easier to understand than the full ABI technical definition.

Now it’s your turn: What could we do to make critical illness products easier for consumers to understand? Will we ever be able to move away from the complicated, technical definitions that we use today? Please share your views. Leave a comment or a link to your own articles.