Tag Archives: protection

How can Financial Services Professionals better engage with their clients?

Financial Services, , , , , , ,

Are we fighting a losing battle trying to overcome public perception that protection insurance is expensive, difficult to buy and that insurers go out of their way to decline claims?

At a national level this might be the case.

I’ve written before about the concept of “confirmation bias”. If someone has a viewpoint there are plenty of articles and videos online which will confirm their viewpoint. And it is human nature not to go looking for something that supports the opposite view.

Financial Services Professionals

Over two decades we’ve seen massive efforts by the protection industry to improve. Customer service is better. Marketing and technical material is simpler and easier to understand. And we’ve increased the percentage of claims paid up into the high 90%.

But such is the national media’s influence that the public still believe the opposite.

Confirmation bias works because the Daily Mail and other publications still publish enough negative articles, and have a huge back catalogue of content, that perpetuates the view.

National Media shapes a national viewpoint.

Take the Westminster offshore investment scandal as an example. Many newspapers ran stories condemning David Cameron for “dodging” and “avoiding” inheritance tax. Everyone is up in arms about this. It proves that David Cameron is a crook doesn’t it? He must resign.

It took Martin Lewis to point out on Twitter:

“Dear fellow journalists, calling legit inheritance tax planning dodgy, even if it’s Cameron, is wrong. Pls stop.”

As I write this people have liked Martin’s tweet 1900 times and retweeted it 2700 times.

That’s an overwhelming vote of support for his correct viewpoint. But I guarantee that the articles about David Cameron being crooked will continue, thus adding to the weight of confirmation bias against him.

Can the UK protection industry hope to overcome such a media view at a national level?

In his recent Cover Magazine article Kevin Carr suggested that we should pay all claims and not rely upon definitions. Leading industry personalities responded saying this wasn’t possible. Prices would go up.

On the assumption that paying all claims, perhaps by using a “something bad happening” catch all definition, isn’t going to happen, we have to assume the media will continue to fuel confirmation bias at a national level. If we can’t pay every claim, then there will always be some declines that the press can pick up on.

In fact, you can guarantee that even if providers paid 99.9% of claims, the media would still report its outrage on the 0.1% declined.

The solution to the problem then is for the industry to focus its attention at the local level. One of the keynote speeches I have in my kit bag is, “The Only Hope for Protection Market Growth is the Social Financial Adviser”. I still believe that this is the case.

It’s the financial adviser that has strong relationships with their clients at a local level. Whilst the national psyche is that you can’t trust financial planners, individual advisers have the strong trust of their own clients.

We can change things.

Many people talk about social media and using it to find more clients. It’s definitely possible to do this but we must remember that social media is not a promotional vehicle. It’s an engagement platform. A method to create, build and strengthen relationships with new and existing clients. A foundation to build trust.

Telling positive stories, about the 90% plus claims statistics for example, and building upon that trust in those relationships might help change public opinion much more than battling against the established national media fueled perception that continues to hinder protection market growth.

Now it’s Your Turn:

What have you been doing to promote your business and engage with more clients? Please share your ideas here or on social media.

Cover magazine originally published a version of this piece in the May 2016 issue.

Susie Colley on PMI, Critical Illness Cover and Going Beyond Expectations – MPAF81

MPAF Podcast, , , , , , ,

In this episode I talk to Susie Colley.

She advises her clients on the best PMI, critical illness and income protection products to meet their needs.

And uses her nursing experience to give them expert help when and if they claim.

Listen to Susie talk about the state of the PMI and critical illness markets and her ideas for future growth. Hear about how she goes beyond expectations with the added value services she gives her clients.

That’s all right here in episode 81 of the Marketing Protection and Finance Podcast.

Susie Colley on PMI, Critical Illness Cover and Going Beyond Expectations

Who is Susie Colley?

Susie runs Westcountry Health Care.

Having had 25 years in the nursing profession, she does the leg work for her clients in finding the policies that will work for them and deliver exactly what they want at a price that suits their pocket.

She’s committed to demystify the jargon , explain the underwriting and explain the benefits of the policy, what’s included and what isn’t.

Susie believes that insurance services shouldn’t stop at the point of purchase. Westcountry Health Care’s USP is the personal care each and every client receives for the lifetime of their policy.

The winner of numerous industry awards Susie is also chair of the Torquay Chamber of Commerce.

Links:

If you enjoyed – Susie Colley on PMI, Critical Illness Cover and Going Beyond Expectations  – please leave a comment or a review on iTunes.

And if you know anyone who would enjoy the show – please share it with them. You can use the buttons below to share on social media.

Don’t miss an episode of the MPAF Podcast – subscribe now.

Subscribe on iTunes

Subscribe by RSS Feed

If you like the Podcast please click

Stories and Customer Engagement Should be the Focus for 2016

Financial Services, Marketing, , , , ,

The 7 Families initiative proves that stories work.

Often better than slick advertising campaigns. Stories resonate with people. The campaign shows that combined with social media it’s a great way to engage with potential customers.

Stories and Customer Engagement

I’ve been saying, with my tongue slightly in my cheek, that what the protection industry needs are 7000 families. Every product provider, reinsurer and financial adviser could be pushing out stories on the printed page, in video and in audio. There’s little evidence that this will happen.

As the 7th Family takes centre stage, discussions will turn to whether the campaign should continue. Who will fund it and by how much? Strong leadership from the team ensured the success of round one of the campaign but will that be enough to guarantee more?

Making a dent

We need to do more because, although a well-conceived campaign, 7 Families hasn’t made much of a dent in the true perception people have of protection product providers.

Recently the Daily Mail ran an article about a declined critical illness claim. The client developed a cancer in situ the policy didn’t cover, even under a partial payment. The journalist took a neutral stance. The piece was quite balanced and made the point people should read the small print or ask their adviser to explain it to them.

The comments beneath the article, however, betrayed the true feelings of the readers and their perceptions. “Product providers always try and decline claims,” they raged. “All protection insurance is a rip off.” “Financial advisers are conmen.” “Critical Illness is a scam.” “Don’t touch any of these policies with a barge pole.”

A huge task and a long game face the industry to change these views. But companies are cutting marketing budgets or channelling them elsewhere. Product development meetings focus on adding a few more critical illness conditions. Or knocking a few pennies off the premium rate. New entrants to the market launch high quality and complex products but have to play the same price and condition games to grab their share of a flat market.

People before profit?

Actuarial minds focus on how to make the existing cake more profitable. They’ll ask questions. Should they stop taking business from those advisers they feel have “persistency issues”? Should they use postcode pricing to squeeze a little more off the headline rate to appear cheap. Then they go on to load the premiums of more applicants?

None of these actions engage customers. They don’t help change perceptions of a maligned industry.

True and sustained customer engagement is what we need. 7 Families points the way ahead but it’s only a tiny first step. Postcode pricing might make you more profitable in the short term. But once everyone catches up we’re all back to where we started and customers are still writing nasty comments under Daily Mail articles.

Let’s follow the path indicated by 7 Families, but let’s ramp up the customer engagement to unheard of levels. Looking outward is the only way to grow the market.

Now it’s your turn:

What do you think Protection Provider’s should do to increase customer engagement in 2016? Are stories and customer engagement the way forward? Please leave a comment or share your thoughts on Social Media.

Money Marketing Magazine originally published this article on 10 December 2015.